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How students resist with a huge debt on their had? watch

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    Hi guys.
    I'm curious if for you the student debt is something very hard to accept.

    I've seen lots of students, especially in the USA, with 50k of debt of their head, while countries like Germany do not ask so much money from people.

    Well my question is, how this student mentally resist with this huge debt on their head?
    They never protested?

    If I can give my opinion I can say that I personally couldn't accept this debt.

    What do you think about?

    Thanks
    WiSi.
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    UK citizens doesn't really affect ppl
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    (Original post by WiSi)
    Hi guys.
    I'm curious if for you the student debt is something very hard to accept.

    I've seen lots of students, especially in the USA, with 50k of debt of their head, while countries like Germany do not ask so much money from people.

    Well my question is, how this student mentally resist with this huge debt on their head?
    They never protested?
    The USA has real student debt - you have to pay. The UK doesn't - it's more a graduate tax that many won't even pay the interest with, and the debt will eventually be written-off.

    If I can give my opinion I can say that I personally couldn't accept this debt.
    Are you never going to buy a house?
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    (Original post by RogerOxon)
    The USA has real student debt - you have to pay. The UK doesn't - it's more a graduate tax that many won't even pay the interest with, and the debt will eventually be written-off.
    So how the US student resist ?


    (Original post by RogerOxon)
    Are you never going to buy a house?
    If I have already one, no.
    https://www.telegraph.co.uk/business...ng-do-avocado/
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    the debt isn’t like bank loan debt - it just comes straight out of your pay, doesn’t affect your credit rating or ability to apply for other loans. £50 a month is a small price to pay for a degree which enabled me to do my job IMO.
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    (Original post by LavenderBlueSky88)
    the debt isn’t like bank loan debt - it just comes straight out of your pay, doesn’t affect your credit rating or ability to apply for other loans. £50 a month is a small price to pay for a degree which enabled me to do my job IMO.
    I know, but prices like 70k are huge, those are the money my family make in 8 years.
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    (Original post by WiSi)
    I know, but prices like 70k are huge, those are the money my family make in 8 years.
    Yeah it’s ridiculously expensive in theory but you don’t start even paying until you’re earning something like £25k a year and it only goes up when your pay goes up. Yeah the higher your fees the longer you pay but there’s no time limit that you have to pay in, and I think it gets written off after a certain time (? Correct me if I’m wrong, that may be a rumour!)

    My fees we’re only £9k but I wouldn’t let the “debt” put me off encouraging my children to go to uni. Unless of course the way it works changes in some capacity.
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    (Original post by LavenderBlueSky88)
    Yeah it’s ridiculously expensive in theory but you don’t start even paying until you’re earning something like £25k a year and it only goes up when your pay goes up. Yeah the higher your fees the longer you pay but there’s no time limit that you have to pay in, and I think it gets written off after a certain time (? Correct me if I’m wrong, that may be a rumour!)

    My fees we’re only £9k but I wouldn’t let the “debt” put me off encouraging my children to go to uni. Unless of course the way it works changes in some capacity.
    I heard about the fact that you don't have to pay if you do not earn at least 25k.
    You said that you can by it by 50£ per month, and is right, in the UK is not very high, I agree with the fact that 50£ a month worths the degree.
    But thing about a german student, if he save the same money a US student do, to bay back with debt, he will have enough money to buy a house, everywhere he want.

    I mean, in the end, if we continue in this way, we will have a very rich German country, that will continue to accumulate wealthy.
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    (Original post by WiSi)
    But thing about a german student, if he save the same money a US student do, to bay back with debt, he will have enough money to buy a house, everywhere he want.
    I live in Silicon Valley. A house in a nice area dwarfs any student debt.

    I currently pay £28k a year in fees for my son to study in the UK, plus travel, accommodation and living expenses. I think that it's worth it.

    I mean, in the end, if we continue in this way, we will have a very rich German country, that will continue to accumulate wealthy.
    Germany is a high-tax economy - it needs to be to pay for universities, not that I disagree with that approach for rigorous degrees.
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    (Original post by RogerOxon)
    I live in Silicon Valley. A house in a nice area dwarfs any student debt.

    I currently pay £28k a year in fees for my son to study in the UK, plus travel, accommodation and living expenses. I think that it's worth it.


    Germany is a high-tax economy - it needs to be to pay for universities, not that I disagree with that approach for rigorous degrees.
    I can't judge how much are £28k for a person that live in Silicon Valley, but I guess is more cheap than the tuition fees of California, isn't it?
    I mean, in the US tuition fees can be so high that maybe for an american is more convenient to go to the UK to study.

    What do you mean that Germany is a high-tax economy ?
    That you have to pay high taxes for other things?
    If so, also the sanitary system work in that way there.
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    No I don't see it as a problem, I kind of went in knowing that I would have a debt (like everyone else)... so no it doesn't annoy me etc. I'm paying money to get into a career which will help me pay it off and will give me a satisfying level of achievement. It's not going to be paid off instantly but it won't result in me having financial issues since its a certain amount taken out each year.
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    (Original post by Vikingninja)
    No I don't see it as a problem, I kind of went in knowing that I would have a debt (like everyone else)... so no it doesn't annoy me etc. I'm paying money to get into a career which will help me pay it off and will give me a satisfying level of achievement. It's not going to be paid off instantly but it won't result in me having financial issues since its a certain amount taken out each year.
    That's good.
    Probably it's me, that I'm not used to manage debt, because I see it as something negative.
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    (Original post by WiSi)
    I can't judge how much are £28k for a person that live in Silicon Valley, but I guess is more cheap than the tuition fees of California, isn't it?
    I mean, in the US tuition fees can be so high that maybe for an american is more convenient to go to the UK to study.

    What do you mean that Germany is a high-tax economy ?
    That you have to pay high taxes for other things?
    If so, also the sanitary system work in that way there.
    Germany like a number of European countries has higher income taxes than, say the UK and the US. China, India, Singapore etc have much lower tax rates. Therefore an English graduate paying for their student loans may not be worse off than their German counterpart. Likewise, its far more worthwhile investing in education if you are from Singapore of Hong Kong as you keep far more of your earnings.

    Some Americans do study in the UK but the rates for overseas (non EU) students are far more than the £9k per annum for UK/ EU.
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    Its pay as you earn, and generally speaking it doesnt encroach onto personal finances such as paying rent or your credit score.

    Most people never pay it off and it gets cancelled in 30 years, so it seems not to be much of an issue for people
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    (Original post by ajj2000)
    Germany like a number of European countries has higher income taxes than, say the UK and the US. China, India, Singapore etc have much lower tax rates. Therefore an English graduate paying for their student loans may not be worse off than their German counterpart. Likewise, its far more worthwhile investing in education if you are from Singapore of Hong Kong as you keep far more of your earnings.
    Ok, so Germany is paying the universities with money from taxes and not from students.
    Anyway, can be this a good thing?
    I mean, does the university research receive enough money from this kind of system?
    Is business more difficult in this way ?
    Is this the Adam Smith invisible-hand?

    (Original post by ajj2000)
    Some Americans do study in the UK but the rates for overseas (non EU) students are far more than the £9k per annum for UK/ EU.
    So they aren't so much, considering how big is the USA, isn't it?
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    People tend to fall into these categories:
    1. - The ones who are trying to get into high-paying sectors and therefore hope that they'll be able to pay it off quickly after graduation (i.e. the future City workforce);
    2. - The ones who need the degree to pursue their dream career and so have to take on the debt whether they like it or not (again, City people and STEM/academic researchers);
    3. - The ones who know/suspect that they won't be able to pay the loan back but are either in denial or have made peace with the fact.


    There's probably a fourth category of 'people with middle class parents who can remortgage their home to pay the debt off the second the student graduates', but these people will fall into one of the other three categories anyway.
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    (Original post by WiSi)
    Ok, so Germany is paying the universities with money from taxes and not from students.
    Anyway, can be this a good thing?
    I mean, does the university research receive enough money from this kind of system?
    Is business more difficult in this way ?
    Is this the Adam Smith invisible-hand?
    I don't know if its a good thing - it certainly rewards those who study relatively to those who don't. University research is mainly paid for through government on any system so no real difference. Adam Smith has no place here - all is managed by government. The invisible hand may prompt people to move to lower tax economies. I've come across a fair few software types who have moved to Bulgaria to pay less tax - tax competition is a real risk as more people speak languages and communications are cheaper.

    (Original post by WiSi)
    So they aren't so much, considering how big is the USA, isn't it?
    Not many- but why leave America where you pay USD 20k a year to move to the UK and pay £25k for overseas student rates? Some whose parents have saved for private school fees in America do - and some who have EU passports consider moving and gaining residence to study for free.
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    (Original post by ajj2000)
    I don't know if its a good thing - it certainly rewards those who study relatively to those who don't. University research is mainly paid for through government on any system so no real difference. Adam Smith has no place here - all is managed by government. The invisible hand may prompt people to move to lower tax economies. I've come across a fair few software types who have moved to Bulgaria to pay less tax - tax competition is a real risk as more people speak languages and communications are cheaper.
    Yes, Adam Smith is against the intervention of the government, so how those country can live in a capitalistic system and have a so massive interference of the government ?

    I know about Bulgaria, there are a lots of engineers that work for about 1000 euros per week, so many people go there to invest.

    (Original post by ajj2000)
    Not many- but why leave America where you pay USD 20k a year to move to the UK and pay £25k for overseas student rates? Some whose parents have saved for private school fees in America do - and some who have EU passports consider moving and gaining residence to study for free.
    I thought that tuition fees in US are about 40-50k per year.
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    (Original post by WiSi)
    Yes, Adam Smith is against the intervention of the government, so how those country can live in a capitalistic system and have a so massive interference of the government ?
    These are not very free market countries. Capitalism isn't necessarily the same as free market or small government.




    (Original post by WiSi)
    I thought that tuition fees in US are about 40-50k per year.
    In state tuition fees (meaning you study at a state university in a state where you can prove residence are far less - maybe 20k a year. Also people study at community colleges for the first 2 years (these are far cheaper) and then transfer. Many of the more expensive schools give lots of scholarships - Harvard for example is free for low income families. Also American salaries for skilled people can be far higher than most places in Europe - particularly in fields like IT and medicine.
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    (Original post by ajj2000)
    Not many- but why leave America where you pay USD 20k a year to move to the UK and pay £25k for overseas student rates? Some whose parents have saved for private school fees in America do - and some who have EU passports consider moving and gaining residence to study for free.
    UC Berkley is just over $14k a year (in-state). However, the competition for top places in the US is insane, and includes school grades and extracuricular activites. A Masters is 6 years and includes a broader range of subjects (at almost all US universities)

    The UK system is competitive, but (typically) only on academic merit in subjects relevant to the degree. A Masters is 4 years and doesn't include other subjects.

    My son is at Imperial (£28k per year - Oxbridge is ~£30k). It's a far better university that he would have got into in the US, as he doesn't have pages of extracuricular activities, or a Nobel prize. It costs a lot more than a University of California would, but a little less than Stanford (very close to us) / Harvard etc.
 
 
 
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