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Should The Threshold For Student Loan Repayment Be Reduced? watch

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    At the moment the current law is that if a person is not earning £17335 a year then he or she is not entitled to pay back any of their student loan, however (correct me if im wrong) before this it was £21,000 and more recently there has also been many debates on whether this should be further reduced too £15,000.

    Do you agree or dis-agree?

    Personally i think that until the rules on repayments are made stricter more and more people are not going to pay it back and thus leave it to the tax payer to pay for their education. It will also eradicate many of the so called "mickey mouse" degrees as many people were studying such degrees as a means to get some extra money whilst knowing that they would never pay it back. This was just causing the tax payers to pick up the bill for students who had no interest in going to university or were just studying a degree for the sake of their enjoyment.
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    i think 21k is a nice number personally.
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    (Original post by Bobjim12)
    i think 21k is a nice number personally.
    I would agree however there are so many jobs not even paying above the 20k mark that it was becoming a joke how many people went to university racked up debts on 65k+ and then ended up working in jobs where the salary was below the mark of repayment and leaving the debt to be picked up by the tax-payer. I think many people need to look at university as a place for improving your graduate opportunities and employ-ability, not just a place too gain knowledge about a particular degree/subject.
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    (Original post by TSRFT8)
    I would agree however there are so many jobs not even paying above the 20k mark that it was becoming a joke how many people went to university racked up debts on 65k+ and then ended up working in jobs where the salary was below the mark of repayment and leaving the debt to be picked up by the tax-payer. I think many people need to look at university as a place for improving your graduate opportunities and employ-ability, not just a place too gain knowledge about a particular degree/subject.
    No matter what you cap it at though, this will always exist, people will find a job which pays just less to avoid paying it.
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    (Original post by Bobjim12)
    No matter what you cap it at though, this will always exist, people will find a job which pays just less to avoid paying it.
    Tbh I really doubt people literally stay just under the repayment threshold to avoid what is a reasonably small re-payment amount.

    Take the 21k threshold. If you earn £20,900, you repay nothing, if you earn £22,000 you repay....£90 quid a year. Is anyone going to logically decide to earn less to avoid a 9% tax on anything above £21k?
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    (Original post by joey11223)
    Tbh I really doubt people literally stay just under the repayment threshold to avoid what is a reasonably small re-payment amount.

    Take the 21k threshold. If you earn £20,900, you repay nothing, if you earn £22,000 you repay....£90 quid a year. Is anyone going to logically decide to earn less to avoid a 9% tax on anything above £21k?
    Basically
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    (Original post by Bobjim12)
    No matter what you cap it at though, this will always exist, people will find a job which pays just less to avoid paying it.
    Not necessarily as this was one of the reasons for the reduction as not many people will earn less than £15,000 as even on minimum wage an individual will be earning there or there abouts of 15k and therefore will be legible to pay it back.
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    The OP mentions £17k in their OP. That's for people who started before September 2012. £21k is for people who started after September 2012.
 
 
 
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