Conservatives scrap maintenance grant, tuition fees will rise with inflation

Announced officially today.

Repayment threshold frozen and won't rise with national earnings as promised.

Graduates on less than £21k will pay interest at RPI+0.7%.

Will affect ALL loans to students starting in 2012 and later.

https://www.gov.uk/government/publications/spending-review-and-autumn-statement-2015-documents/spending-review-and-autumn-statement-2015

I don't understand why the media are being so quiet about this. It is awful, I'm so angry. I know Martin Lewis has vowed to protest against this, but really, what can he or anyone else do? :angry:

Reply 601

Saoirse:3

19

Original post by Snufkin

I don't understand why the media are being so quiet about this. It is awful, I'm so angry. I know Martin Lewis has vowed to protest against this, but really, what can he or anyone else do? :angry:

It's what we all warned about on the streets five years ago. However much you make it look cuddly, saddling students with this debt was never a good idea, and was always going to be manipulated this way in the future. We've already seen the main concession - extra support for low-income students via the National Scholarship Scheme - cut to the point where its grants are at the same level or even lower than they were pre-2012, and now we see them unilateraly alter the contracts. The lesson to take from this: Never, ever, ever trust a Tory.

Reply 602

Snufkin

Universities Forum Helper

21

Original post by Saoirse:3

It's what we all warned about on the streets five years ago. However much you make it look cuddly, saddling students with this debt was never a good idea, and was always going to be manipulated this way in the future. We've already seen the main concession - extra support for low-income students via the National Scholarship Scheme - cut to the point where its grants are at the same level or even lower than they were pre-2012, and now we see them unilateraly alter the contracts. The lesson to take from this: Never, ever, ever trust a Tory.

I just glanced at the MSE forum to see what folks there thought. A number of them seem to think this is a good idea, that students are "greedy" and the tax payer shouldn't fund students at all. If this is what Middle England thinks then we are screwed.

Reply 603

Saoirse:3

19

Original post by Snufkin

I just glanced at the MSE forum to see what folks there thought. A number of them seem to think this is a good idea, that students are "greedy" and the tax payer shouldn't fund students at all. If this is what Middle England thinks then we are screwed.

It's not middle-England, it's a bunch of people obsessed with money and determined to show off how savvy they are because they don't have anything better to do. I'm pretty sure that if it was so inclined a Labour government could abolish fees without encountering much public opposition - it'd just be an economic question.

Reply 604

troubadour.

19

So they're trying to get students to pay back more of their student debts by making them repay for more of the 30 years in which they're required to do so. I struggle to see the problem with this, especially considering that interest would still have been charged for all those years that a graduate may have deferred repayment because of the higher threshold promised.

Unless all this outrage is motivated by a desire to pay back as little of it as possible by taking advantage of the 30-year limit on debt repayment, I don't know what the fuss (or lack thereof, as somebody above has complained) is about.

(edited 8 years ago)

Reply 605

Snufkin

Universities Forum Helper

21

Original post by Hydeman

So they're trying to get students to pay back more of their student debts by making them repay for more of the 30 years in which they're required to do so. I struggle to see the problem with this, especially considering that interest would still have been charged for all those years that a graduate may have deferred repayment because of the higher threshold promised.

Unless all this outrage is motivated by a desire to pay back as little of it as possible by taking advantage of the 30-year limit on debt repayment, I don't know what the fuss (or lack thereof, as somebody above has complained) is about.

You don't have a problem with a lender changing the terms of a loan after it was agreed upon? It is completely unethical, a bank wouldn't be allowed to do it so why should the Government?

Reply 606

Raymondecope

https://petition.parliament.uk/petitions/113491

Reply 607

username1494226

19

Original post by PQ

Announced officially today.

Repayment threshold frozen and won't rise with national earnings as promised.

Graduates on less than £21k will pay interest at RPI+0.7%.

Will affect ALL loans to students starting in 2012 and later.

https://www.gov.uk/government/publications/spending-review-and-autumn-statement-2015-documents/spending-review-and-autumn-statement-2015

I laughed when I saw this and then began profusely laughing at the people who didn't believe me when I told them that they're loan agreements are retroactively alterable to make changes like this. People should be absolutely thinking twice before studying a degree and make sure they're studying something that has actual use(sorry Media Studies students, unemployment is calling for you as soon as you walk on campus) in the workplace. Its why I believe people should study more mathematic degrees that can be translated into the workplace rather well. The trades are also a good entry point that can be all lucrative. Oh its so joyful watching the bubble burst. The false reality the older generations have been telling students is finally being seen as a lie. I feel so giddy right now

Reply 608

username1494226

19

Original post by Raymondecope

https://petition.parliament.uk/petitions/113491

Oh man a petition, thats gonna make a world of difference. Students should have voted differently instead of not voting at all in the election. This is just great. Tbh, students shoule have read the full terms of the loan and realised their was a clause allowing the government to alter the terms. Unfortunately, 99% were star eyed and didnt read those terms and they now have dramatically worse loan agreements as a result. Its your debt and you have to pay it. If you didnt read the terms, I have no pity because the govt was in their right to do it. Oh well

Reply 609

PQ

Clearing and Applications Advisor

21

Original post by marco14196

I laughed when I saw this and then began profusely laughing at the people who didn't believe me when I told them that they're loan agreements are retroactively alterable to make changes like this. People should be absolutely thinking twice before studying a degree and make sure they're studying something that has actual use(sorry Media Studies students, unemployment is calling for you as soon as you walk on campus) in the workplace. Its why I believe people should study more mathematic degrees that can be translated into the workplace rather well. The trades are also a good entry point that can be all lucrative. Oh its so joyful watching the bubble burst. The false reality the older generations have been telling students is finally being seen as a lie. I feel so giddy right now

That's quite a nasty reaction.

Do you get a lot of pleasure from other things that harm others?

Reply 610

username2228735

15

Maybe students will actually think twice before doing a degree now. Or not.

Reply 611

scrawlx101

20

Original post by Aceadria

Maybe students will actually think twice before doing a degree now. Or not.

can you blame us for doing degrees? theres such a huge stigma attached to apprenticeships e.g. they arent a one way ticket to a job,most jobs require a degree nowadays? low pay?

Reply 612

username2228735

15

Original post by scrawlx101

can you blame us for doing degrees? theres such a huge stigma attached to apprenticeships e.g. they arent a one way ticket to a job,most jobs require a degree nowadays? low pay?

You're missing my point. Doing a degree without understanding the decision or its consequences is beyond me. You're taking on massive levels of debt to read a subject, which may not always lead to a job. I'm not saying you should not study at all, but if you are going to do it, make sure you want to do it and are willing to bear the costs in the long-term.

Reply 613

username1494226

19

Original post by PQ

That's quite a nasty reaction.

Do you get a lot of pleasure from other things that harm others?

None, I dont get pleasure from it. I just got pleasure from knowing the loan terms properly when people were telling me that the loans were fair and great. Obviously they're not that great

Reply 614

Jammy Duel

21

Original post by Snufkin

You don't have a problem with a lender changing the terms of a loan after it was agreed upon? It is completely unethical, a bank wouldn't be allowed to do it so why should the Government?

A bank would only not be allowed to do it if they did not make it part of what was agreed upon, pretty sure that part of what you sign basically says "yeah, we can change anything whenever we want"

Reply 615

zigglr

18

Original post by Gouki

This is unbelievable! They will be replaced by maintenance loans.

I assume those of us in Uni will not be affected?

http://www.dailymail.co.uk/news/article-3152873/Osborne-takes-axe-student-grants-1-6-billion-saving-Handouts-replaced-loans-paid-graduation.html

EDIT: Tuition fees will rise with inflation (thanks to calso4 for the link)

Apparently only institutions that can demonstrate excellent teaching can do this, but the 9k fee was also only for 'exceptional' circumstances.

http://www.theguardian.com/education/2015/jul/08/budget-2015-grants-poorer-university-students-scrapped-loans

Why wouldn't they raise the price if half the country is now going to University. Do you realise how much of a profit making machine this is for them

Reply 616

Gnomes&Knights

20

Original post by PQ

Announced officially today.

Repayment threshold frozen and won't rise with national earnings as promised.

Graduates on less than £21k will pay interest at RPI+0.7%.

Will affect ALL loans to students starting in 2012 and later.

https://www.gov.uk/government/publications/spending-review-and-autumn-statement-2015-documents/spending-review-and-autumn-statement-2015

What do you mean graduates earning below £21000 will pay interest at RPI+0.7%? I thought if you're earning below £21000 you don't pay back anything.

Reply 617

Jammy Duel

21

Original post by Raymat

What do you mean graduates earning below £21000 will pay interest at RPI+0.7%? I thought if you're earning below £21000 you don't pay back anything.

Interest is what is added to the debt, not what you pay.

Posted from TSR Mobile

Reply 618

skeptical_john

13

Original post by Jammy Duel

A bank would only not be allowed to do it if they did not make it part of what was agreed upon, pretty sure that part of what you sign basically says "yeah, we can change anything whenever we want"