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Graduates 'could pay back double their student loans' Watch

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    Now without sounding extremely ignorant and naive. Why can't they just make it fair. So that everyone, despite their class/income, pays what they borrow. No right offs after so long, no interest (above inflation) and as soon as and as long as you are working you have to pay it back. I know there will be many flaws with my idealistic view but I just can't understand why this country is obsessed with making everything so unfair. I still don't understand how the Higher Tax rate is fair. Maybe because it isn't. I just don't understand how they come to these decisions.
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    (Original post by Craig_D)

    Your political blindness and propaganda continues to be stunning, Teveth, congratulations.
    Teveth is a troll account right? Somebody please tell me that this guy is not serious.
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    (Original post by Smophy)
    Now without sounding extremely ignorant and naive. Why can't they just make it fair. So that everyone, despite their class/income, pays what they borrow. No right offs after so long, no interest (above inflation) and as soon as and as long as you are working you have to pay it back. I know there will be many flaws with my idealistic view but I just can't understand why this country is obsessed with making everything so unfair. I still don't understand how the Higher Tax rate is fair. Maybe because it isn't. I just don't understand how they come to these decisions.
    Well you've already introduced unfairness by saying only people who are working have to pay it back....

    To be fair, the interest should be set as the 10 year gilt yield (today 3.63%).

    On a £35k loan (3 years at 7k fees, 4k maintenance and 2k interest) a graduate would have about £80k to pay off over a 30 year period.
    £2,600/year

    On an above (slightly above, but above) average graduate starting salary of £20k, or £16k take home, after loan repayment this would be just under £13.5k which is seen as too low when someone on £16k would be on the same take home.
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    (Original post by linkdapink)
    Sorry I didn't read the replies properly, but can someone help me out with this?

    "A Graduate is expected to earn up to £100,000 more in their lifetime"

    WOOHOO. But then...

    "You'll be paying back roughly £83,000"

    So no, I don't earn roughly £100,000 more, only £17,000 in a lifetime.
    You haven't accounted for the loan/interest repayments already built into that figure.

    Help you out with what? What do you need explaining?
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    (Original post by Quady)
    Well you've already introduced unfairness by saying only people who are working have to pay it back....

    To be fair, the interest should be set as the 10 year gilt yield (today 3.63%).

    On a £35k loan (3 years at 7k fees, 4k maintenance and 2k interest) a graduate would have about £80k to pay off over a 30 year period.
    £2,600/year

    On an above (slightly above, but above) average graduate starting salary of £20k, or £16k take home, after loan repayment this would be just under £13.5k which is seen as too low when someone on £16k would be on the same take home.
    Sorry i should of made it clearer what I actually meant. All I meant was you shouldn't be paying it off in retirement lol
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    (Original post by Quady)
    You haven't accounted for the loan/interest repayments already built into that figure.

    Help you out with what? What do you need explaining?
    Well I read that and thought "that can't be right?"... is it right?
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    (Original post by linkdapink)
    Well I read that and thought "that can't be right?"... is it right?
    No its not its probably lower now as a greater proportion of 18 year olds go to uni the grad vs non-grad salary divide continues to shrink. When top up fees were introduced it was on the back of a supposed £400k earning premium. Which was revised down to £150k and now £100k - all in the space for a decade.
    http://news.bbc.co.uk/1/hi/education/4599267.stm

    You miss 3-4 years of earnings and go into the red while you do so.

    Its for the average graduate, if you're above average its more, if you aren't its lower.
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    (Original post by Smophy)
    Sorry i should of made it clearer what I actually meant. All I meant was you shouldn't be paying it off in retirement lol
    In which case you'd have the Govt make people bankrupt - hardly a vote winner.
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    (Original post by Quady)
    In which case you'd have the Govt make people bankrupt - hardly a vote winner.
    Like I said in my original comment. I don't understand it and I know there are lots of flaws with my idea/dream.
 
 
 
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