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How much is/do you reckon your total student debt will be? Watch

  • View Poll Results: what is/do you think your student debt will be?
    0-10k
    5
    5.62%
    10-20k
    3
    3.37%
    20-30k
    12
    13.48%
    30-40k
    19
    21.35%
    40k and above
    50
    56.18%

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    (Original post by nexttime)
    Don't know why the government didn't just go for a 8% grad tax*, would have been a lot simpler, allayed fears by some of being in 'debt', and would've saved so much administrative work in terms of calculating debts, unis offering extra grants, etc.


    *Ok, I do know why. Its because Dave's mates' children would have been hit hard by that, which is just unacceptable.
    This. Structuring the grad tax into a form of debt is quite silly imo. It's like the government are doling out bonds with the coupons being set at 9% (over £21k), and interest rates being variable (albeit low). A straight tax would have been much easier overall.

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    (Original post by Princepieman)
    This. Structuring the grad tax into a form of debt is quite silly imo. It's like the government are doling out bonds with the coupons being set at 9% (over £21k), and interest rates being variable (albeit low). A straight tax would have been much easier overall.

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    Edit :P

    I think the debt interest has to be high. Most people will get theirs written off, so at least, for the debt provider, 3%+inflation enables them to recoup some of their losses elsewhere on those who do eventually earn enough to pay it back. After all, if I have 45k of debt, and do go into a high-paying career, I'll probably pay back at least 60k after interest accrues.

    I presume the graduate tax would cease once the entire debt is repaid? Otherwise you start to penalise graduates into perpetuity. Any finite system would, naturally, that has logistical issues about trying to tie in a PAYE system to, what is in most books anyway, a funding/loan system. Presumably, such a 'tax' could be 'dodged' by moving overseas in any case - those in high-paying jobs are probably the most capable of moving overseas too!
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    After some maths (and getting my statement through from SFE) I will have roughly £103,000 of student loan debt when I graduate in 2020. That equates to having to average at 60k a year over 30 years to repay the original amount. Probably has to be closer to 70k with the huge amount of interest 100k would generate.

    At 63 I will finally get to keep all my post tax earnings 😂 hope I'm healthy well into my 70s
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    (Original post by Axion)
    Edit :P

    I think the debt interest has to be high. Most people will get theirs written off, so at least, for the debt provider, 3%+inflation enables them to recoup some of their losses elsewhere on those who do eventually earn enough to pay it back. After all, if I have 45k of debt, and do go into a high-paying career, I'll probably pay back at least 60k after interest accrues.
    Currently the government gets 9% over 21k and some people pay it off early. We're saying charge 7-8% for the next 30 years (or forever). The amount of interest is irrelevant in this system.

    Would probably raise more, eliminates the idea of 'debt', simpler so will save a bunch of work for SFE. Plus those who benefit from their degree more, pay more. Which seems fair.

    I presume the graduate tax would cease once the entire debt is repaid?
    No. That's a debt not a tax, and would be exactly the same as the current system. You don't stop paying income tax once you've 'repaid' that do you? :p:

    Presumably, such a 'tax' could be 'dodged' by moving overseas in any case
    No of course not. The current system for enforcing payment would apply.
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    Well 9000x3= £27000 for tuition
    Then around £5500x3= £16500 for maintenance loan
    The loan is approximate as I have only just done my first year and so basing it off of this year and the amount I am being given next year.
    I am thankfully getting quite a large grant too so that is a sizeable chunk i will not have to pay back.
    So undergrad i'll be looking at a debt of around £44,000

    Then if i go on and do a masters i'll have
    nearly £7000 tuition
    and then however much maintenance loan on top of that, lets say 5500 like my undergrad (or have i got this whole Masters/postgrad funding thing wrong?)
    so all in all i'll be looking at £56,000 at least in student debt if these masters figures are right.
 
 
 
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