student finance 2014

[KB]

If anyone has the energy to check the small print, I believe that the terms of the repayments are set at the time the student takes the first stage of the loan - so those who already have loans should be confident that the repayment rules wont change.

Martin Lewis did a programme on this also - no doubt its somewhere on the internet.

I think there would be a justified outcry if the graduate tax were applied to those who were also paying off student loans.

You are supposed to let student loans company know if you move/ stop paying tax in UK but in practice .....

[Marylou]

If anyone has the energy to check the small print, I believe that the terms of the repayments are set at the time the student takes the first stage of the loan - so those who already have loans should be confident that the repayment rules wont change.

That's precisely the problem - the small print states that the lender is effectively entitled to change the terms at any point in the future and the person taking out the loan is expected to agree to this. Not sure of the exact wording - I'll have a root around and see if I can find it.

Here it is:
"The regulations may change from time to time and this means the terms of your loan may also change. This guide will be updated to reflect any changes and it is your responsibility to ensure you have the most up-to-date version."

Just remind me - who is it that has control over the regulations? The body that makes the loan in the first place, i.e. the government. I don't think anyone would take out a mortgage under these conditions, but then they have rather got us over a barrel.

[KB]

Interesting - because legally if a contract is deemed unreasonable it will not be upheld. Maybe if they try to change the terms in an unreasonable manner it could be contested?

[Guest55]

KB - do you really think anyone could afford to challenge such a change?

[SteveDH]

KB - do you really think anyone could afford to challenge such a change?

Considering the number of people it would effect, I'm sure student unions etc could raise enough money to put a test case through court or something.

admittedly that bit of small print is pretty scary as the only thing that make the student load attractive at the moment is the 30 year clause.

I personally don't think having a massive student load will effect applying for a mortgage beyond reducing the salary used for calculation by 9%.

Interestingly some Uni scholarships used to be given as reduced fees, but now most have been changed to give the student the cash as reducing the fees in most cases make no difference.

[Guest55]

I personally don't think having a massive student load will effect applying for a mortgage beyond reducing the salary used for calculation by 9%.

We did speak to a few mortgage providers .... they said they would factor in more than that but were not prepared to commit themselves on paper. No-one has confirmed knowledge yet but our research worried us.

[chocolate]

[quote][the only thing that make the student load attractive at the moment is the 30 year clause.quote]

How does this make it attractive? It is still highly likely individuals will be paying for thirty years, which is the majority of your working life, and with the interest rate, you will pay back far more than you borrowed. I would think at least double in most cases.

[SteveDH]

[the only thing that make the student load attractive at the moment is the 30 year clause.quote]

How does this make it attractive? It is still highly likely individuals will be paying for thirty years, which is the majority of your working life, and with the interest rate, you will pay back far more than you borrowed. I would think at least double in most cases.

ok not as nice as no tuition fees at at all but...


a quick unrealistic scenario.

My DD is likely to be on a masters course, so 4 years would be 36k and maintenance load 22k

so total debt on leaving unit 58k

now lets say she then gets stuck in a £25k job for the next 30 years (the unrealistic part, but it simplifies things).

25k means you pay back £360 per year
30 years @ £360 is £10800

so all she would pay back of the original 50k load would be 10k
sounds good to me...

of course that all sort of falls apart depending on inflation and wage increases etc.. but it does sort of illustrate the point.

[Guest55]

Now pick a realistic salary and redo the calculations ...

Then she might choose to marry someone with a similar 'debt' ... also on a similar salary.

Remember the interest builds up from day one of the course ....

[southbucks3]

Do you know what is saddest..it is the same smug a holes who brag about avoiding paying tax on huge incomes that will succeed in using the loans in an advantageous way for either themselves or their kids, then find old school tie employment for their kids at a fixed 21k a year with hidden perks.

So cross at the thought I forgot to punctuate!