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Who else thinks Uni is unnecessarily expensive ?

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Reply 20
Avatar for difeo
difeo
18
Original post by Bill_Gates
6th April 2016 to 5th April 2017 £17,495

you think earning just over 17k means Uni was worth it?


You're not gonna pay any significant amount back at just over 17k are you...
Original post by difeo
You're not gonna pay any significant amount back at just over 17k are you...


still mate, you're losing like 9% of your income. At 17k that is A LOT. Plus if you want kids, a house, a car you best be earning at least minimum 25k.
Original post by ByEeek
It doesn't make sense to think of it as a debt or expense because in reality it is paid back as a tax and only for 30 years. So if after 30 years you owe £200+k it is irrelivant. It has however been suggested that fees negate the graduate premium and the risk to debters is that the government may change the ts and cs without notice, or sell of the debt to a private company.


what does TS & CS mean?

If the latter happens, we're screwed. :frown:
Reply 23
Avatar for difeo
difeo
18
Original post by Bill_Gates
still mate, you're losing like 9% of your income. At 17k that is A LOT. Plus if you want kids, a house, a car you best be earning at least minimum 25k.


It's not 9% of everything, it's 9% of everything over the threshold, which as far as I know is 21k not 17k. Basically it's structured in a way that it's never putting anyone in serious financial difficulty.
Original post by XxKingSniprxX
what does TS & CS mean?

If the latter happens, we're screwed. :frown:


Terms and conditions probably
Original post by difeo
It's not 9% of everything, it's 9% of everything over the threshold, which as far as I know is 21k not 17k. Basically it's structured in a way that it's never putting anyone in serious financial difficulty.


Yep i know that, i currently repay mine from when fees were 3k per year. I just see it as a deterrent to aspiration. I hope no one doesn't earn enough to not pay it off. It's essentially just an added tax. Which starts at 17k. So you have 20% tax + 9% NI + 9% student loan 38% effective tax rate. WOW! Let alone hitting the 40% tax band.
Original post by Aristotle's' Disciple
Terms and conditions probably


You're profile pic reminded me of this clip I saw on instagram where this old guy
fair bit of chub made a hook throw from half way of the court & landed it in the hoop. He won $75,000 = £56,500 & had LeBron jumping on him :laugh:
Original post by XxKingSniprxX
You're profile pic reminded me of this clip I saw on instagram where this old guy
fair bit of chub made a hook throw from half way of the court & landed it in the hoop. He won $75,000 = £56,500 & had LeBron jumping on him :laugh:


Haha I've seen that. LeBron is the man :biggrin:

[video="youtube;P9LmHXXWiJs"]https://www.youtube.com/watch?v=P9LmHXXWiJs[/video]
Original post by Bill_Gates
still mate, you're losing like 9% of your income. At 17k that is A LOT. Plus if you want kids, a house, a car you best be earning at least minimum 25k.


For post 2012, the repayment threshold is £21k. Even on the old system that equates to 9% of £495 which is ~£45. How is that 'A LOT'?

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Original post by Bill_Gates
Yep i know that, i currently repay mine from when fees were 3k per year. I just see it as a deterrent to aspiration. I hope no one doesn't earn enough to not pay it off. It's essentially just an added tax. Which starts at 17k. So you have 20% tax + 9% NI + 9% student loan 38% effective tax rate. WOW! Let alone hitting the 40% tax band.


Which is exactly what it is: a tax.

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Original post by Princepieman
For post 2012, the repayment threshold is £21k. Even on the old system that equates to 9% of £495 which is ~£45. How is that 'A LOT'?

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The old system was great! loved it!
Reply 31
Avatar for difeo
difeo
18
Original post by Bill_Gates
Yep i know that, i currently repay mine from when fees were 3k per year. I just see it as a deterrent to aspiration. I hope no one doesn't earn enough to not pay it off. It's essentially just an added tax. Which starts at 17k. So you have 20% tax + 9% NI + 9% student loan 38% effective tax rate. WOW! Let alone hitting the 40% tax band.


I see, I dunno exactly how the old system works but under the new system, even someone earning way over the threshold on 30k would only pay back £810 a year, which is a 2.7% tax rate. Honestly that seems totally reasonable to me, given they most likely wouldn't have got there without the degree. If you're on 25k it's just 1.2%. I imagine the old one is similar in that if you're just hitting the threshold you're paying practically nothing back.
Original post by Princepieman
Which is exactly what it is: a tax.

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it's a loan not a tax though. At 18 or whatever you don't know how much you will be earning in the future. I know this year if i don't want to hit the top tier tax rate i just need to slow down.
Original post by difeo
I see, I dunno exactly how the old system works but under the new system, even someone earning way over the threshold on 30k would only pay back £810 a year, which is a 2.7% tax rate. Honestly that seems totally reasonable to me, given they most likely wouldn't have got there without the degree. If you're on 25k it's just 1.2%. I imagine the old one is similar in that if you're just hitting the threshold you're paying practically nothing back.


30k is around 23k after tax so £810 out of 23000 still sound's like a lot! lol. Plus interest will keep adding to it.
Original post by Bill_Gates
it's a loan not a tax though. At 18 or whatever you don't know how much you will be earning in the future. I know this year if i don't want to hit the top tier tax rate i just need to slow down.


It's a tax.. The terms are quite clearly similar to how national insurance is paid (bar the decrease in rate) but others will say national insurance isn't a 'tax' either. End of the day, you're paying a fixed % of your income to HMRC and either you earn enough to pay it all or you get it subsidised (read: wiped) by the gov.



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Original post by Princepieman
It's a tax.. The terms are quite clearly similar to how national insurance is paid (bar the decrease in rate) but others will say national insurance isn't a 'tax' either. End of the day, you're paying a fixed % of your income to HMRC and either you earn enough to pay it all or you get it subsidised (read: wiped) by the gov.



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Taxes are applied to everyone. Student loans are not paid back by everyone lol. Taxes are not optional.
Original post by Bill_Gates
Taxes are applied to everyone. Student loans are not paid back by everyone lol. Taxes are not optional.


Ok:
'Grad' tax

Student loan repayments aren't optional either lol

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Original post by XxKingSniprxX
what does TS & CS mean?

If the latter happens, we're screwed. :frown:


Terms and conditions. The government under Osborne have already broken their promise to raise the threshold at which you pay back and also done it retrospectively. Bad news indeed.
Original post by Princepieman
Ok:
'Grad' tax

Student loan repayments aren't optional either lol

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but you can decide to go uni or not :tongue:
Original post by Bill_Gates
still mate, you're losing like 9% of your income. At 17k that is A LOT. Plus if you want kids, a house, a car you best be earning at least minimum 25k.


You're not losing a penny at £17k. You could always offset it by avoiding income tax.

Original post by ByEeek
Terms and conditions. The government under Osborne have already broken their promise to raise the threshold at which you pay back and also done it retrospectively. Bad news indeed.


I'd be interested to dig out one of my SFE contracts, I'd imagine it'd have a clause that says terms can be changed.

Original post by Cap.Henry Avery
It cost in England £9000 for a term and that is reportedly set to rise even higher. By the time people are finishing university and starting their career, they are roughly £50,000 in debt, which for a young person is utterly ridiculous. It seems to me businesses are trying to capitalise on people's educations. What do you think?


It's £9,000 a year not a term. The debt is a completely different type of debt to a commercial loan, most people will never even pay it all back. I would agree that there isn't enough diversification of prices but Oxbridge is extremely good value for money when the price is compared to its nearest competitors internationally.


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