Surely we'll never pay back our Tuition Fees. Have I made an error here?
Discussion and questions about student financial support arrangements - from government loans and grants to university bursaries. Please use the main Money & Finance forum for more general financial topics.
This thread is sponsored by:
| Announcements | Posted on | |
|---|---|---|
| Important: please read these guidelines before posting about exams on The Student Room | 28-04-2013 | |
-
- Reputation:
- Benevolent Member
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?
Nope. It's only on earnings over the threshold.(Original post by Julii92)
Wait wait wait, won't the repayment be 9% of £21 000 or whatever you're earning, and not 9% of £9000? -
- Reputation:
- Exalted Member
- Posts: 375
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?A lot of people go to uni to eventually become teachers which is capped at below £30,000. Don't have such a greedy attitude.(Original post by Forum User)
You made the mistake of assuming that people are still earning £30k a year 25 years later when they're in your 40's despite being a graduate. If this is the case for anyone then I would suggest that they have completely and utterly wasted their time going to university.
It's a stupid system, barely anyone pays it back and you'd have to be a moron to pay it all back in one go. The new fees system means the government will lend out more and recoup even less. Fools. -
- Reputation:
- Overlord in Training
- Location: Scotland
- Posts: 3,068
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?Depends on the individual.(Original post by Forum User)
You made the mistake of assuming that people are still earning £30k a year 25 years later when they're in your 40's despite being a graduate. If this is the case for anyone then I would suggest that they have completely and utterly wasted their time going to university.
For me university isn't solely a means of social mobility. Obviously it's main purpose is to "get you a job" as it would be, but the student life for a few years is very much desirable.
Say you offered me the chance to go to university for 4 years, get a job, starting at an elevated level thanks to said degree and be earning 30k in 25 years time, or to start at the rank bottom straight out of school with the same company and work the way up to the same 30k after, well 29 years it would be, I'd take the university option. -
- Reputation:
- Overlord in Training
- Location: Scotland
- Posts: 3,068
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?It's not that simple, but as with all taxes and tax like payments, there are loopholes which can be exploited legally.(Original post by Pitt1988)
Can anyone tell me if this is true or a load of *******s I've taken off someone as fact. If you move and work abroad for over 6 years, your debt is written off? -
- Reputation:
- Overlord in Training
- Location: North Wales
- Posts: 2,029
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?I wasn't actually aware of that. I know that up until now, the £15k payback threshold has stayed at £15k, so I guess I was working on an assumption that the £21k would also stay the same. I shall have to look into it(Original post by jismith1989)
Yes, but the payback threshold is also increased in line with inflation every year, so the threshold will also well be above £21k by that time. (However, the interest on the loans will be increasing at the higher RPI, while the threshold will be uprated at the lower CPI rate, which slightly skews things.)
-
- Reputation:
- Exalted and Worshipped Member
- Posts: 1,363
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?Interesting! I will be looking into these loopholes more thoroughly!(Original post by Mr Dangermouse)
It's not that simple, but as with all taxes and tax like payments, there are loopholes which can be exploited legally. -
- Reputation:
- Respected Member
- Posts: 168
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?Off to the Cayman islands(Original post by Pitt1988)
Can anyone tell me if this is true or a load of *******s I've taken off someone as fact. If you move and work abroad for over 6 years, your debt is written off?
-
- Reputation:
- Vengeful, Imperial Overlord of The Student Room
- Posts: 3,757
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?They also made the mistake of assuming a lot of people will be walking straight into £30000 a year jobs after uni - in this current economic climate it just isn't really happening.(Original post by Forum User)
You made the mistake of assuming that people are still earning £30k a year 25 years later when they're in your 40's despite being a graduate. If this is the case for anyone then I would suggest that they have completely and utterly wasted their time going to university.
The average salary sixth months after graduating in 2008 was £19,000. I'm assuming it is now lower than this. I for one am doubtful that I will pay off my 18 grand of debt that I will have when I leave next year. -
- Reputation:
- PS Helper
- Overlord in Training
- Location: Cheam
- Posts: 2,865
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?You're living in some kind of messed up fantasy world. I can assure you people don't walk into 30k a year jobs straight after university that rise to 50k in a few years. ......... .....................(Original post by Forum User)
Because you can easily get a random office job without a degree and move up 'through the ranks' sufficiently quickly to be on much more than £30k a year at age 46 or whatever (I'm assuming that 25 years post graduation was correct)
You might think that £30k sounds like a lot of money from your perspective as a current student (if you are), but it is not. I don't have a single friend who went to university who earns less than this, and my friends are all in their early/mid 30s. My girlfriend who got a perfectly average degree from a moderate university is on £50k aged 28 and she is hardly setting the world on fire in her chosen career.
IMO if you have any kind of ability at all, are in a graduate career, and you are still on £30k after 10-20 years of employment you are doing something very wrong. -
- Reputation:
- Benevolent Member
- Posts: 740
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?A rich moron who's skipping out on paying the acquired interest of Inflation + 3%...(Original post by tinman1)
A lot of people go to uni to eventually become teachers which is capped at below £30,000. Don't have such a greedy attitude.
It's a stupid system, barely anyone pays it back and you'd have to be a moron to pay it all back in one go. The new fees system means the government will lend out more and recoup even less. Fools. -
- Reputation:
- Overlord in Training
- Posts: 3,306
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?In my late 40's/early 50's I expect to be earning much more than 30k, so even allowing for inflation and stuff; I'm pretty sure I'll have paid off my debt/tax whatever you want to call it.
<3 x -
- Reputation:
- Benevolent Member
- Posts: 740
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?Depends on the opportunities presented to them. For example graduate entry as a Lieutenant in the Royal Navy starts at £37,000 after training, and with exceptional performance, there's no reason this couldn't rise in a few years.(Original post by RobertWhite)
You're living in some kind of messed up fantasy world. I can assure you people don't walk into 30k a year jobs straight after university that rise to 50k in a few years. ......... ..................... -
- Reputation:
- Exalted Member
- Posts: 375
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?I know so many middle class people whose parents use their life savings to pay them all off in one go. These are the same fools who vote Tory.(Original post by PrinceyJ)
A rich moron who's skipping out on paying the acquired interest of Inflation + 3%... -
- Reputation:
- Vengeful, Imperial Overlord of The Student Room
- Posts: 4,485
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?Nobody has ever answered my (what I believe) to be simple question:
Where is this money coming from? Isn't there going to be some kind of black hole if the entire system is built around the idea that some people might never pay it all back? Given that the current economic climate is such that there are fewer jobs and salaries are a good bit lower in real terms, even including inflation/deflation surely this means that, yet again, future generations will be shafted?
I'm not an economist but something seems amiss here and I can't find a clear answer. -
- Reputation:
- Overlord in Training
- Location: North Wales
- Posts: 2,029
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?Up until the 2012 changes the government has been subsidising the universities directly. All that's changing is that the government will still be subsidising the universities, via Student Finance.(Original post by ch0llima)
Nobody has ever answered my (what I believe) to be simple question:
Where is this money coming from? Isn't there going to be some kind of black hole if the entire system is built around the idea that some people might never pay it all back? Given that the current economic climate is such that there are fewer jobs and salaries are a good bit lower in real terms, even including inflation/deflation surely this means that, yet again, future generations will be shafted?
I'm not an economist but something seems amiss here and I can't find a clear answer. -
- Reputation:
- Overlord in Training
- Location: North Wales
- Posts: 2,029
Re: Surely we'll never pay back our Tuition Fees. Have I made an error here?As I have just found out, and wasn't aware of before, yes it will.(Original post by NuclearFusion)
Just another thing I was wondering incase anyone knows, does the £21,000 threshold for paying back your student loan rise with inflation? Because it should do really.
The 21k threshold will start to rise in line with earnings starting April 2016. This goes for the current 15k threshold too.
