Have your say: Working-class students turn to loan sharks due to hidden fees

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candokoala
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Here's where you can post a comment about our Working-class students turn to loan sharks due to hidden fees, says NUS article.

Read the full Working-class students turn to loan sharks due to hidden fees, says NUS article and join in the discussion by posting a message below.
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PQ
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https://assets.publishing.service.go...ights_60ss.pdf
Universities are supposed to make students aware before they accept an offer of the "total cost of the course, including tuition fees and any necessary additional costs such as field trips, lab equipment or studio/bench fees"

Any university that hasn't done this should be reported to the CMA https://assets.publishing.service.go...law_breach.pdf

If you want to report an issue, you should provide us with:
 your name;
 your contact details;
 the name of the HE provider concerned;
 information on the issue you wish to report; and
 any supporting evidence.
You should send this in an email to: [email protected].
It's pretty disappointing that the NUS/UUK/DfE didn't think to provide that information
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PQ
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Also - medical students on placement can claim a travel grant in addition to their student finance: https://www.practitioners.slc.co.uk/...ats-available/
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CoolCavy
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Im confused. Students from low income families get the maximum maintenance loan and tuition fees are provided to everyone regardless so why would they need to turn to loan sharks.
It's people from well off families that dont get any support from their parents financially that are the ones being stung as they get the minimum loan.
The maximum or higher loans are more than enough, even with 'hidden costs'. I have to fork out on promarkers and design supplies and am on the minimum loan if these students on the max loan are struggling then they clearly arent budgeting properly.
Last edited by CoolCavy; 2 years ago
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CoolCavy
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Yeh i get you, yeh maybe it was a bit narrow minded to say that they werent budgeting right, i see a lot of threads on here though saying stuff like 'maintenance doesnt cover accommodation' and it transpires that they want a studio with an en-suite and stuff and it's like £7000. Those are the people i have no sympathy for becuase that's just a ridiculous situation. As you say though it is individual.
I do question why they are going to loan sharks though, surely there are other options like an overdraft or even a hardship fund ( i dont know how easy these are to get though cos i havent had to use them *yet*)
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nulli tertius
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Surely the point about lack of transparency is that it is unreasonable to expect someone to appreciate costs in advance costs that are not transparent.

Furthermore, what is universally true about the poor in all times and conditions, is they lack the financial resilience to manage economic shocks whether that is the failure of the potato harvest or the cost of a field trip. Tell someone about an April field trip in September and collect a tenner a week, and the poor student can fund it. Tell her about the field trip in March and ask for £150 and she can’t. The money has gone on something else.

It is unrealistic in any generation and any circumstances to expect anyone to put aside money for unknown costs, until all basic needs in that era have been met.
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username4454836
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Such a bull**** bit a "research" done by NUS. Working class students get shed loads in their existing maintenance loan.

As ever they try to make everything about class, sex or race.
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Miss Maddie
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Stupidity really. They don't pay off their loans until they're earning above the threshold. If they can't control their money that's their fault
Last edited by Miss Maddie; 2 years ago
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Mesneaks
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(Original post by CoolCavy)
Im confused. Students from low income families get the maximum maintenance loan and tuition fees are provided to everyone regardless so why would they need to turn to loan sharks.
It's people from well off families that dont get any support from their parents financially that are the ones being stung as they get the minimum loan.
The maximum or higher loans are more than enough, even with 'hidden costs'. I have to fork out on promarkers and design supplies and am on the minimum loan if these students on the max loan are struggling then they clearly arent budgeting properly.
I highly agree with your statement where well off families are worse off as they do not receive any support from their parents, i receive the minimal maintenance loan and after my bills i have to make £500 stretch for 4 months which is meant to fund my car insurance, petrol costs to drive to placement, food, laundry and any other necessities. I only ask my parents to pay for my gas and electric and nothing else because despite how much they earn together they are not in a position to "make up" for the financial gap created by the maintenance loan, on top of this i have also discovered that alot of students from a "disadvantaged" background have received £1000 scholarships which i believe is unfair as they receive the maximum maintenance loan on top of that so why would they require this. https://www.theguardian.com/educatio...ns-maintenance points this out clearly
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username4454836
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The system is fundamentally flawed, all students should receive the same amount regardless of what their parents earn because what their parents earn isn't the student's money. It is a loan which still needs to be paid back so why refuse a higher loan to a students who according to them has more money. It isn't like the old system where those on low income would be given grants to top up their loan.
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username4454836
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The entire system needs an overhaul because as I said it is fundamentally flawed.
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username4454836
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It is flawed in that the vast majority of the loans will never get paid back thanks to artificially inflated tuition fees and interests rates well above inflation. We now have the most expensive university education in the world and the debt is expected to be £2bn by 2023.

The interest is calculated using RPI which is a completely flawed measure as shown by the fact the UK Statistics Authority stripped it of its National Statistics kitemark for being an overstated measure. So they are using an upwardly biased measure with a 3% increase on top of that making the debt unpayable under normal earning thresholds that you would expect from an average graduate.

Your average graduate is earning between £19k-£22k, so after 3-4 year of interest on the loan while they are at university they will then have another 1-2 years on top of that while they get to the £25k threshold.

That is not a good a system for repayment.
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