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Something the coalition hasn't told uni student... Watch

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    (Original post by The_Great_One)
    Thats rubbish...nick clegg said on jeremy vine that people are allowed to pay upfront and theirs no way you can stop them from doing that!
    Another u-turn then! The coalition said from the outset that those students from wealthy families who could afford to pay the fees upfront would not be allowed to do so because the government would be legislating for such prohibition.

    As an aside, don't you think that its tantamount to social engineering to discourage those who come from socio-economically disadvantaged families by raising the fees exponentially if you have wealthy parents who, in being able to pay the suggested fees upfront could afford to pay far more than £9,000 pa?

    OK...additional point to consider along with the OP...should uni fees be raised to something like £20,000 pa for those who come from very wealthy families? This will negate the need to charge the poor £9,000 pa.
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    (Original post by Yawn)
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    (Original post by diamonddust)
    I heard (on here) that banks don't look at student debt in the same way they do other debts and so it has no bearing on your credit rating or whether they give you a loan or not. I have no source for that though. :sigh:

    This has some validity I would think.

    Student Loans are not considered a debt as such. The banks won't even know about it, unless you tell them (as the data is reported to the 3 credit reference agencies).

    However, if you have to provide proof of employment/income in the form of P60s/Wage Slips etc. then obviously it will be noted on there. Though most banks let you use your bank statements as proof of income (therefore they know your net income, but they won't know how it breaks down or that you are making contributions to Student Finance).

    Not that it matters anyway as Student Finance contributions are similar to NI and integrated into the PAYE system so they are deducted from your salary without you even ever seeing that money. The repayments are usually very small in comparison to other debts of such amounts and low interest rate.

    So it conclusion after all this dribble - it won't affect your (precieved) credit worthiness, but obviously the deductions will show on your proof of income. Student finance, itself, won't affect you applying for a mortgage.
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    (Original post by yawn)
    At the moment, the student debt for someone doing a three year course is £10,000+. Banks and credit agencies will take a very dim view of an applicaiton for credit from someone who is nearly £30,000 in debt - unless the coalition enforce the creditors to give graduates credit...by way of rigorous regulation.
    Banks don't look at student debt even before the rise when considering an applicant for credit. It's not going to be any different. You've made an uneducated statement in order to further your 'cause' by scare-mongering.
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    (Original post by stefk93)
    Firstly, students today still graduate with £25k+ of debt so surely it wont be a huge difference for future students. And has noone realised that american students are left with over 150k of debt once they graduate and how do they survive?
    Suck it up and stop whining
    Surely it won't be a huge difference? The fees may increase to 3 times what they are now. That sounds like a large sum to me.

    In America they either get a scholarship or raise enough money to pay for their tuition before they go. Plus America is completely different to the UK. You can not compare the two countries in any way.
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    (Original post by PoliceStory)
    'Student debt' isn't considered when it comes to your credit rating, stop scaremongering.
    It doesn't at the moment because the fees don't amount to more than £10,000 over a three year course.

    It will impact on obtaining loans if you are encumbered with a debt of £30,000. To deny this is feckless.

    Let's put it to the test. Ask Nick Clegg whether the status quo regarding obtaining loans post graduation will remain once the debt is far more substantial. Easy, peasy - providing we get a straight answer.
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    (Original post by yawn)
    We should be challenging the coalition on whether they are going to change credit and bank loan laws to accommodate a debt-burdened generation.
    A few years ago we were hearing similar complaints about the rapid rise in house prices. If house prices kept on rising so fast, young people would never be able to have the means to buy houses, cars, commodities etc that you mention.

    So the response from the financial sector was to relax the rules on credit, which is why you had the mortgages on 10 times peoples income and so on. A few soothsayers of doom were warning that this would end up causing trouble but the governments didn't regulate it because the financial sector wanted it. At the end of the day the way that banks, building societies etc make money is through lending, and making interest. They don't want to contract the market for credit, they want to expand it.

    Unfortunately you then got more and more risky credit being given out and we found out that a lot of it was not going to be paid back, which left all the financial institutions who were holding and selling on that securitised debt, playing a game of pass the parcel with debt that wasn't going to be repaid, which meant that huge portions of their assets (loans on their books supposed to be repaid to them) were actually not worth anything. Hence the crash.

    Now at the moment banks are edgy about lending because they are worried about this type of thing happening again but once they return to a situation where they think it's all clear to start expanding the credit market again, I can see the argument you have made in your original post, setting off a new era of expanded credit, in which the seeds will be sown for the next collapse of the banking system.
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    (Original post by brokenangel)
    .....
    How do you intend to never pay it back?

    PM if you don't want to give specific details.
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    (Original post by yawn)
    It doesn't at the moment because the fees don't amount to more than £10,000 over a three year course.

    It will impact on obtaining loans if you are encumbered with a debt of £30,000. To deny this is feckless.

    Let's put it to the test. Ask Nick Clegg whether the status quo regarding obtaining loans post graduation will remain once the debt is far more substantial. Easy, peasy - providing we get a straight answer.
    It doesn't impact on your credit rating because it isn't debt. It never has, and never will.
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    (Original post by pothead1)
    How do you intend to never pay it back?

    PM if you don't want to give specific details.
    Easy leave the level at minimum repayment on whatever i earn as a biomed or Dr if i get in. Even over 25yr this wouldnt pay it all off ie ill come out about 5k in pocket as ill currently graduate just under 30k in debt, with 90% of my maitaince loan going into a find to pay for my house deposit + what rent would have spent on fees.

    As im currently in the process of setting up a company ill have to think carefully how i get any financial benefit out of it without paying back the fees I dotn agree with.

    BTW if you intend to move abroad and never return just dont declare your income and apparently they cant do anything about it not 100% sure on that one tho
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    Watching this thread thanks for posting this, maybe it's laziness and I could get the answers somewhere else (?) but I have wondered about this as I don't know much about financial stuffs.
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    (Original post by yawn)
    Whilst they strive to defend their intention to raise uni fees to £9,000 as a starting point for further hugh increases by repeating that the fees aren't payable upfront, nor until the student is working and in receipt of £21,000 pa, what they haven't said is how this debt is going to impact on the future of the student.

    As you know, to be able to obtain loans to buy homes, furniture, cars etc. one has to be able to demonstrate that one has sufficient means to cover the loan plus interest payments from one's salary.

    If one is encumbered by tens of thousands of pounds worth of debt already (uni fees) which will take decades to repay (for all those except for those from wealthy families who can pay off the debt for them) how will banks and credit agencies view the existing debt when considering whether to load the former student with additional, crippling debts?

    I think we're going to see this generation being denied the wherewithal to buy their own homes, new furniture, cars and related costs...in fact, many commodities that our parents take for granted.

    We should be challenging the coalition on whether they are going to change credit and bank loan laws to accommodate a debt-burdened generation.
    This is alarmist propaganda, or possibly ignorance. The loan term is for 30 years and then any outstanding payments are written off. The repayment terms are a maximum of 3% + inflation, so if this was implemented now someone on a salary of upto £39k who took the maximum loan would be repaying £30.00 per month, someone on £40k it would be £143.00 per month.

    I for one am getting really sick and tired of people trying to scare the next generation of students from even thinking of going to uni with all these scare stories.

    STOP IT!!
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    (Original post by PoliceStory)
    It doesn't impact on your credit rating because it isn't debt. It never has, and never will.
    If it's 'not debt' what is it?

    You're using sophistry to defend something that you can't possibly defend because you don't know for sure, anymore than any of us.

    It seems there's a lack of foresight that both myself and MagicNMedicine display.
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    (Original post by stefk93)
    Firstly, students today still graduate with £25k+ of debt so surely it wont be a huge difference for future students. And has noone realised that american students are left with over 150k of debt once they graduate and how do they survive?
    Suck it up and stop whining
    Actually - that's a very small amount of privat universities. Public universities like Berkeley have lower tutition fees than in the UK.
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    (Original post by diamonddust)
    I heard (on here) that banks don't look at student debt in the same way they do other debts and so it has no bearing on your credit rating or whether they give you a loan or not. I have no source for that though. :sigh:
    (Original post by PoliceStory)
    'Student debt' isn't considered when it comes to your credit rating, stop scaremongering.
    This and this. Because of this:

    (Original post by doggyfizzel)
    I highly doubt a bank is going to deny someone a loan because they have a student loan. It's rises with inflation has easily manageable payments, and shows a sense of financial management. A bank is going to clear a loan or mortgage based on your credit rating, having a massive loan which you have shown you are capable of paying back on time is only going improve your credit rating, if it even has any effect seeing as you can't default on it.
    It's not a normal kind of loan. It comes out of wages before you see the money so is more like a tax. There's no reason for it to affect credit rating.
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    (Original post by Broderss)
    Surely it won't be a huge difference? The fees may increase to 3 times what they are now. That sounds like a large sum to me.

    In America they either get a scholarship or raise enough money to pay for their tuition before they go. Plus America is completely different to the UK. You can not compare the two countries in any way.
    President Obama and his wife only repaid their student loans not long after he became a Senator, as even though they were both high earners the repayment terms were generous (although more stringent than is being proposed over here) in american terms and the both owed around £150.00k each. This didn't stop them or many other poor americans going to college and doing very well for themselves. The american students fees are vastly higher than they are here, and social mobility is much higher there than here where it has gone down over the last decade. This is despite student numbers growing by almost 40%.
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    (Original post by yawn)
    If it's 'not debt' what is it?

    You're using sophistry to defend something that you can't possibly defend because you don't know for sure, anymore than any of us.
    It's a graduate tax.

    It seems there's a lack of foresight that both myself and MagicNMedicine display.
    If compulsive lying to you means foresight, then you've been spending too much time with Gordon Brown.
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    (Original post by yawn)
    It doesn't at the moment because the fees don't amount to more than £10,000 over a three year course.

    It will impact on obtaining loans if you are encumbered with a debt of £30,000. To deny this is feckless.
    The size of the student loan is irrelevant, it could be £100,000 and it still won't affect your credit rating because Student Finance do not have any obligation to inform the rating agencies whether or not you have a student loan.
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    (Original post by SatanIsAwesome)
    That debt includes housing and food too though.
    Todays students will be paying that for tuition fees alone, as well as having to pay for housing and food.



    Wages in America are higher and their houses are a lot cheaper....
    Also, where is your evidence for for this 150k figure?
    Right, unless your going to oxbridge or something you will be paying £6k instead of £3k, its only double, thats £18000. Honetly whats the difference in debt terms of £9000 to £18000

    And in america one year costs like £40000, you do the maths
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    If we're looking for a reason why people from poor backgrounds are put off University because of fees then look to stupid ****s like yawn who feed them lies.
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    (Original post by Captain92)
    One of things most pundits over here are most afraid of is our system becoming more 'American' so I'm not sure I understand your point?
    Im just saying everyone has debts, and american students have bigger debts than British students, even with the increase, so its not the end of the world, or something to cause a massive fuss about
 
 
 
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