New Debt Crisis

[I1L2T3]

If not then the value would just be eroded by inflation of course.

 

The way it's set up is as a legal contract with a company. If the Govt legislated to change that retrospectivly then I think that they would have real issues with the courts.

 

Sorry, but no banana.

 

It’s RPI + 3%

 

Try again....

[ez8004]

It’s a debt. Stop pretending it isn’t.

 

It affects your take home income for decades, unless you aspire to always earn under the threshold. But then you get a reminder every few months how much you have racked up in interest. Just to remind you you’re in debt and in hock for 30 years.

 

You still do not get it.

 

The repayment amounts is relative to your income. Relatively speaking it is LOW compared to what you earn.

 

The maths has already been spelled out to you. If you do not understand, then say so. It is really not hard to understand if you have a GCSE in maths.

 

You do not have to constrain yourself to earning below the threshold in order to gain. Far from it, even if you earn £50k/year and I think a lot of people will agree that this is a decent wage, the EFFECTIVE interest rate is 0.8% on a loan amount of £60k. WHAT IS WRONG WITH 0.8%?

 

---------- Post added 03-09-2018 at 22:26 ----------

 

Sorry, but no banana.

 

It’s RPI + 3%

 

Try again....

 

You still do not understand maths.

 

Try harder.

Edited September 3, 2018 by ez8004

[I1L2T3]

You still do not get it.

 

The repayment amounts is relative to your income. Relatively speaking it is LOW compared to what you earn.

 

The maths has already been spelled out to you. If you do not understand, then say so. It is really not hard to understand if you have a GCSE in maths.

 

You do not have to contrain yourself to earning below the threshold in order to gain. Far from it, even if you earn £55k/year and I think a lot of people will agree that this is a decent wage, the EFFECTIVE interest rate is 2.1% on a loan amount of £60k. WHAT IS WRONG WITH 2.1%?

 

---------- Post added 03-09-2018 at 22:26 ----------

 

 

You still do not understand maths.

 

Try harder.

 

I don’t understand why you are so invested in supporting such a rotten system.

 

You’re attacking somebody who would voluntarily forego income to support younger generations. I don’t want them to have a millstone round their neck for decades.

 

And, did you use the calculator on Money Saving Expert? I suggest if you think the maths on there is wrong you contact them.

 

RPI + 3%. Why?

[ez8004]

I don’t understand why you are so invested in supporting such a rotten system.

 

You’re attacking somebody who would voluntarily forego income to support younger generations. I don’t want them to have a millstone round their neck for decades.

 

And, did you use the calculator on Money Saving Expert? I suggest if you think the maths on there is wrong you contact them.

 

RPI + 3%. Why?

 

The interest rate set by the student loans company is a complete red herring. IT DOESN'T MATTER WHAT IT IS. It can be 1000% and it wouldn't change how much you pay back unless you are earning VAST sums of money.

 

The system isn't rotten. You think it is because you fundamentally do not understand it.

 

All students have access to effectively low interest rate loans to go to university. In the current climate, the government cannot afford to pay for everyone's higher education. So this is the best it has come up with. To be honest, it is actually a great system, because it protects graduates who can't land a decent paying job. Where your stupid idea of taxing all graduates would punish them the most.

[Obelix]

Sorry, but no banana.

 

It’s RPI + 3%

 

Try again....

 

Why try again? What have I to prove?

 

You asked why it';s not a debt I told you.

 

As for the 3% over RPI - when was the last time you saw a mortgage at the inflation rate? Theres a cost associated with running these schemes, people die, the capital isnt recovered. Obviously there will be an amount over the base rate.

[phil752]

Why try again? What have I to prove?

 

You asked why it';s not a debt I told you.

 

As for the 3% over RPI - when was the last time you saw a mortgage at the inflation rate? Theres a cost associated with running these schemes, people die, the capital isnt recovered. Obviously there will be an amount over the base rate.

 

Isn't the real problem people going to university that wil never get a degree of merit to allow them to get a job that will allow them to pay the debt off. Now i don't blame people, going into now to go degrees, but universities that now treat degrees like selling cars, it just a business to them.

Edited September 3, 2018 by phil752

[Obelix]

Isn't the real problem people going to university that wil never get a degree of merit to allow them to get a job that will allow them to pay the debt off.

 

I couldnt possibly comment as I have a useable degree. You have input to it though?

[ez8004]

Isn't the real problem people going to university that wil never get a degree of merit to allow them to get a job that will allow them to pay the debt off.

 

No, because the debt doesn’t need paying off. That is why thresholds exist because any repayment is made, the amount repaid is dependent on how much you earn.

[phil752]

I couldnt possibly comment as I have a useable degree. You have input to it though?

 

input to it?

 

---------- Post added 03-09-2018 at 22:53 ----------

 

No, because the debt doesn’t need paying off. That is why thresholds exist because any repayment is made, the amount repaid is dependent on how much you earn.

 

Duh sorry of course it does, we you me pay it off if the student does not

Edited September 3, 2018 by phil752

[I1L2T3]

The interest rate set by the student loans company is a complete red herring. IT DOESN'T MATTER WHAT IT IS. It can be 1000% and it wouldn't change how much you pay back unless you are earning VAST sums of money.

 

The system isn't rotten. You think it is because you fundamentally do not understand it.

 

All students have access to effectively low interest rate loans to go to university. In the current climate, the government cannot afford to pay for everyone's higher education. So this is the best it has come up with. To be honest, it is actually a great system, because it protects graduates who can't land a decent paying job. Where your stupid idea of taxing all graduates would punish them the most.

 

It’s not a red herring at all. There’s a very clear reason for it.

 

---------- Post added 03-09-2018 at 23:04 ----------

 

Why try again? What have I to prove?

 

You asked why it';s not a debt I told you.

 

As for the 3% over RPI - when was the last time you saw a mortgage at the inflation rate? Theres a cost associated with running these schemes, people die, the capital isnt recovered. Obviously there will be an amount over the base rate.

 

Even the SLC describe the loans as debt.

 

The +3% isn’t intended to cover unrecovered capital, or even death of borrowers.

 

In time the debt owed will balloon to approaching a trillion pounds.

 

Now who would be interested in a loan book like that? Like if the government decided to sell it?

 

Answer is that the system is monetised to support future private sales of parcels of the loan book. That’s the other major aspect of this scam - the goalposts can shift.