75% of students will never pay off their student loans Watch

Doonesbury
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#21
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#21
(Original post by HeartBlink)
Wdym?
Graduates repay their student loan by paying 9% of their earnings above £25,000 per year. So effectively it's like another income tax.
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DSutch
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A graduate tax would be much better.
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Doonesbury
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(Original post by ltsmith)
No bailiffs will ever come knocking at your door for SFE debt
They use debt collectors though.
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Sinnoh
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Easy, just don't be most people
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Rabbit2
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I think you could make the same statement about home loans. It used to be, that the average home price was between 3x and 3.5x times the average salary in any given area (in the US). As an example: In Nevada, people didn't make much money - so the average house was about $25,000 to $30,000 (this is in about 1971). On Madison Ave (NYC), people made much more - so an average flat was about $700k to $900k. When i bought my house in 1971, i paid $37,800 for a 3 bedroom, 1.5 bath house on 1/4 acre with a one car garage. That same house today, would list for $320,000 The neighbourhood consists of plumbers, construction workers, cops, etc. The wives drive school buses, work as secretaries, etc. When i took over my house, i assumed the original loan on it. Since i paid about $22,000 as a down payment, my monthly payment was the same as the original owner. This amounted to $257.90 per month. To buy an equivalent house today, if you made a down payment of say 10% TO 20% - you would have a loan balance of about $270,000. This would require a monthly PITI payment [principal, interest, taxes & insurance] of about $2300 to $2600. Your total house payments over the year would be about $31,200 [the price of my original house]. In order to make such a payment, the couple living in the house would need a combined income of about $200,000 per year (before taxes). I don't know where you get people that can come up with that much money in basically a blue collar community. I notice that nearly all the vacant houses now, are either being rented out (at about $2800+ a month), or are inhabited by 12 to 18 people, who usually speak Spanish (or another language not English). You can tell this, because the houses are surrounded by 10 to 15 ragged vehicles. I don't know who is going to buy the McMansions that are a few miles down the road. They are in the $500,000 to $1,500,000 range. The US is rapidly getting into the housing situation that the Uk has been in for a number of years. Good luck to all of us, i fear we will need it!! Cheers.
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S27
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I think everyone is ok with this to an extent? Otherwise we wouldn't go?
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username1207499
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(Original post by Mathemolic)
Proof
Are you high?
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Doonesbury
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(Original post by Rabbit2)
I think you could make the same statement about home loans. It used to be, that the average home price was between 3x and 3.5x times the average salary in any given area (in the US). As an example: In Nevada, people didn't make much money - so the average house was about $25,000 to $30,000 (this is in about 1971). On Madison Ave (NYC), people made much more - so an average flat was about $700k to $900k. When i bought my house in 1971, i paid $37,800 for a 3 bedroom, 1.5 bath house on 1/4 acre with a one car garage. That same house today, would list for $320,000 The neighbourhood consists of plumbers, construction workers, cops, etc. The wives drive school buses, work as secretaries, etc. When i took over my house, i assumed the original loan on it. Since i paid about $22,000 as a down payment, my monthly payment was the same as the original owner. This amounted to $257.90 per month. To buy an equivalent house today, if you made a down payment of say 10% TO 20% - you would have a loan balance of about $270,000. This would require a monthly PITI payment [principal, interest, taxes & insurance] of about $2300 to $2600. Your total house payments over the year would be about $31,200 [the price of my original house]. In order to make such a payment, the couple living in the house would need a combined income of about $200,000 per year (before taxes). I don't know where you get people that can come up with that much money in basically a blue collar community. I notice that nearly all the vacant houses now, are either being rented out (at about $2800+ a month), or are inhabited by 12 to 18 people, who usually speak Spanish (or another language not English). You can tell this, because the houses are surrounded by 10 to 15 ragged vehicles. I don't know who is going to buy the McMansions that are a few miles down the road. They are in the $500,000 to $1,500,000 range. The US is rapidly getting into the housing situation that the Uk has been in for a number of years. Good luck to all of us, i fear we will need it!! Cheers.
There's already been a massive housing and financial crash in the US, I'm surprised you didn't notice it...

Not sure what this has to do with English student loans though. :nope:

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Student-95
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#29
(Original post by DSutch)
A graduate tax would be much better.
For most students that's what it is.
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ecolier
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(Original post by Kuoa71)
independent.co.uk/student/graduates-three-quarters-never-pay-off-debt-loan-maintenance-grant-institute-for-fiscal-studies-a7824016.html

"Most graduates will still be paying off student loans into their 50s, and three-quarters will never clear the debt, a new probe has found."

Wake up Sheeple!
:cry: I have repaid everything in full
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federam
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(Original post by D3LLI5)
Are you high?
Definition of average is add all and divide by all

Ex.
Person 1 - £50
Person 2 - £20
Person 3 - £32
Person 4 - £12
Person 5 - £100

Average full time - £42.80
Median full time - £32
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username1207499
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#32
(Original post by Mathemolic)
Definition of average is add all and divide by all

Ex.
Person 1 - £50
Person 2 - £20
Person 3 - £32
Person 4 - £12
Person 5 - £100

Average full time - £42.80
Median full time - £32
Thats the definition of the mean, which is an average, just as median is also an average
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federam
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(Original post by D3LLI5)
Thats the definition of the mean, which is an average, just as median is also an average
" Are you high? "
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Audrey18
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#34
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#34
(Original post by Kuoa71)
independent.co.uk/student/graduates-three-quarters-never-pay-off-debt-loan-maintenance-grant-institute-for-fiscal-studies-a7824016.html

"Most graduates will still be paying off student loans into their 50s, and three-quarters will never clear the debt, a new probe has found."

Wake up Sheeple!
(Original post by Mathemolic)
Its extra tax idiot
(Original post by Aleks<3)
eh I expected that tbh
(Original post by thaliaevelyn)
oh, well, that's fun
(Original post by Mathemolic)
Proof
this was revealed every single year for the past 5 years. its an open secret and shouldn't come as a surprise to anyone.

https://www.bbc.com/news/education-26688018

https://www.ft.com/content/726e3158-...a-d9c0a5c8d5c9

https://www.independent.co.uk/studen...-a7824016.html
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Rabbit2
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(Original post by Doonesbury)
There's already been a massive housing and financial crash in the US, I'm surprised you didn't notice it...

Not sure what this has to do with English student loans though. :nope:

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Those happen periodically in all countries (including the Uk). My point was that many people are taking on debt that they will never be able to repay - just like national governments. Anyone that thinks that Venezuela will ever repay what they've b orrowed [or Greece either] is smoking something. When you take on student debt to study something that will probably not yield a decent income (so you can pay the debt off), then you are destined to never pay it off. Becoming indebted to study engineering, medicine, or law may make sense. To study 'art appreciation' or 'the history of music' sadly does not - at least in my fevered brain. Cheers.
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Doonesbury
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(Original post by Rabbit2)
When you take on student debt to study something that will probably not yield a decent income (so you can pay the debt off), then you are destined to never pay it off. Becoming indebted to study engineering, medicine, or law may make sense. To study 'art appreciation' or 'the history of music' sadly does not - at least in my fevered brain. Cheers.
Except the UK student loan is designed to be written off if the graduate doesn't earn enough. The majority of loans will be written off.

By the way, people studying History Of Art are often from privileged backgrounds and generally go on to do just fine. Kate Middleton being a somewhat cliched example...
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Rabbit2
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(Original post by Doonesbury)
Except the UK student loan is designed to be written off if the graduate doesn't earn enough. The majority of loans will be written off.

By the way, people studying History Of Art are often from privileged backgrounds and generally go on to do just fine. Kate Middleton being a somewhat cliched example...
True, but i don't think that the reason she is 'going on to do just fine' has anything at all to do with her degree. In my case, my degree does, because i did not marry into the 'landed gentry'. Every nickel i've got i earned myself. Cheers.
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Doonesbury
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(Original post by Rabbit2)
True, but i don't think that the reason she is 'going on to do just fine' has anything at all to do with her degree. In my case, my degree does, because i did not marry into the 'landed gentry'. Every nickel i've got i earned myself. Cheers.
No my point was many folks who are in a privileged position (she is from a well-off, albeit not gentry, family) choose to study the courses you can't get your fevered brain around.

The less privileged generally choose something with a clearer career path in mind (not always, but often).
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jojo444
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(Original post by Kuoa71)
independent.co.uk/student/graduates-three-quarters-never-pay-off-debt-loan-maintenance-grant-institute-for-fiscal-studies-a7824016.html

"Most graduates will still be paying off student loans into their 50s, and three-quarters will never clear the debt, a new probe has found."

Wake up Sheeple!
The government is really raking it in then.
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Jpw1097
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(Original post by username1207499)
Thats the definition of the mean, which is an average, just as median is also an average
(Original post by Mathemolic)
Definition of average is add all and divide by all

Ex.
Person 1 - £50
Person 2 - £20
Person 3 - £32
Person 4 - £12
Person 5 - £100

Average full time - £42.80
Median full time - £32
An average is just a measure of 'central tendency' - i.e. where the centre of the data lies. Mean, median, mode, etc. are all measures of central tendency - that is, they are averages. The best average to use is median when it comes to income, as people earning very large salaries skew the data, and skewed data pulls the mean in the direction of the skew. So the mean makes the average salary look a lot more than it actually is.
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