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How would you feel if tuition fees went up even more? Watch

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    (Original post by Azimuth)
    As long as it's written off after x years, and I can get a full loan to cover it, I'd go to university even if it cost £1 million per year.
    OK
    Lets put fees to £1 million a year.
    You pay back 15% of your salary over £21k a year

    Loan written off after x years, when x = 45
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    (Original post by MagicNMedicine)
    OK
    Lets put fees to £1 million a year.
    You pay back 15% of your salary over £21k a year

    Loan written off after x years, when x = 45
    I think I end up repping you every 30 days.
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    (Original post by danny111)
    I think I end up repping you every 30 days.
    I might have to get some neg rep off you then, I could start by answering income effect on demand guy's homework for him.
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    (Original post by Crazy Paving)
    Yeah, but there is also the (unlikely) situation that the loans get paid off (with interest) before the increases are imposed. But, unfortunately, that is unlikely.
    agree that loans could be paid off saving interest, if someone can afford it , saving them a lot of money.
    I don't know many people who can afford to repay 40K quickly, unless they're merchant bankers or something like that.
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    (Original post by MagicNMedicine)
    I might have to get some neg rep off you then, I could start by answering income effect on demand guy's homework for him.


    That guy truly annoyed me.
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    (Original post by MagicNMedicine)
    OK
    Lets put fees to £1 million a year.
    You pay back 15% of your salary over £21k a year

    Loan written off after x years, when x = 45
    I'm not sure what point you're making

    It's 9%, and 30 years. My point is that if the debt is written off after 30 years, assuming I'm never wealthy enough to pay it all back, it doesn't matter if fees are £9,000 or £1 million.
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    Right, can someone answer this question for me since i'm still confused,
    If I am applying this year, will I have to pay the extra tuition fees for the 2nd and 3rd years
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    (Original post by Azimuth)
    I'm not sure what point you're making

    It's 9%, and 30 years. My point is that if the debt is written off after 30 years, assuming I'm never wealthy enough to pay it all back, it doesn't matter if fees are £9,000 or £1 million.
    Don't forget there is the possibility of the government using fiscal drag to decrease the real terms threshold at which you start to pay it back.

    Eg they say you start paying back 9% over £21000 a year. I bet you that they don't increase that £21000 in line with inflation every year.

    Eg inflation is 4.5%, that should go to £21495 the next year, but the odds are they will stick with the £21000 as a nice round number. Maybe after 5 or so years they will review it and increase the threshold. But if inflation had been round about that 4.5% level for 5 years, then by the end of it you would be paying back your loan in real terms at a rate above about £16800 in todays terms.
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    (Original post by MagicNMedicine)
    Don't forget there is the possibility of the government using fiscal drag to decrease the real terms threshold at which you start to pay it back.

    Eg they say you start paying back 9% over £21000 a year. I bet you that they don't increase that £21000 in line with inflation every year.

    Eg inflation is 4.5%, that should go to £21495 the next year, but the odds are they will stick with the £21000 as a nice round number. Maybe after 5 or so years they will review it and increase the threshold. But if inflation had been round about that 4.5% level for 5 years, then by the end of it you would be paying back your loan in real terms at a rate above about £16800 in todays terms.
    Firstly, no, it's reviewed and adjusted every year. This was announced several days ago.

    Secondly, in your example after five years, the threshold would still be higher than it is under the current system. In which the threshold isn't adjusted at all.

    Lastly, that has nothing to do with my point, which is that the total amount of debt doesn't matter if it's written off after 30 years.
 
 
 
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