Hey there! Sign in to join this conversationNew here? Join for free

Who else thinks Uni is unnecessarily expensive ? Watch

    Offline

    19
    ReputationRep:
    (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?
    Yep - graduate premium i.e the return on investment for going to uni has been wiped out. Due to the 50k debt + interest.
    Offline

    19
    ReputationRep:
    (Original post by difeo)
    I imagine in the majority of cases, if it's not worth it you don't pay it back, and if it is then you do, so there's no problem.
    6th April 2016 to 5th April 2017 £17,495

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

    18
    ReputationRep:
    It is but at least it doesn't have to be paid upfront like in America. It gets written off after a certain amount of years and you only have to pay back once you star earning 21k. Also uni doesn't have to be expensive, if you're worried about debt you can reduce it by staying st home/ not taking out student maintenance loans etc ....
    Offline

    15
    ReputationRep:
    (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...
    Offline

    19
    ReputationRep:
    (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.
    Offline

    21
    ReputationRep:
    (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.
    Offline

    15
    ReputationRep:
    (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.
    Offline

    19
    ReputationRep:
    (Original post by XxKingSniprxX)
    what does TS & CS mean?

    If the latter happens, we're screwed.
    Terms and conditions probably
    Offline

    19
    ReputationRep:
    (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.
    Offline

    21
    ReputationRep:
    (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:
    Offline

    19
    ReputationRep:
    (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

    • TSR Support Team
    Offline

    20
    ReputationRep:
    TSR Support Team
    (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'?

    Posted from TSR Mobile
    • TSR Support Team
    Offline

    20
    ReputationRep:
    TSR Support Team
    (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.

    Posted from TSR Mobile
    Offline

    19
    ReputationRep:
    (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'?

    Posted from TSR Mobile
    The old system was great! loved it!
    Offline

    15
    ReputationRep:
    (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.
    Offline

    19
    ReputationRep:
    (Original post by Princepieman)
    Which is exactly what it is: a tax.

    Posted from TSR Mobile
    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.
    Offline

    19
    ReputationRep:
    (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.
    • TSR Support Team
    Offline

    20
    ReputationRep:
    TSR Support Team
    (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.



    Posted from TSR Mobile
    Offline

    19
    ReputationRep:
    (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.



    Posted from TSR Mobile
    Taxes are applied to everyone. Student loans are not paid back by everyone lol. Taxes are not optional.
    • TSR Support Team
    Offline

    20
    ReputationRep:
    TSR Support Team
    (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

    Posted from TSR Mobile
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    What's your favourite Christmas sweets?
    Useful resources
    Uni match

    Applying to uni?

    Our tool will help you find the perfect course

    Articles:

    Debate and current affairs guidelinesDebate and current affairs wiki

    Quick link:

    Educational debate unanswered threads

    Groups associated with this forum:

    View associated groups
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.