Forum Topic

what about students loans Risky Sunak!!

with all these billions falling off the newly discovered money tree, surely, SURELY, students loans must be a major priority. For some who have forked out £9K plus for tuition last year with strikes and covid, did not get much for their money. Their housing costs which for most have been left empty since Feb and those graduating this year going into the new world of mass redundancies and companies cutting their graduate schemes while their interest rate on their loans grow at 6%. I worry about this generation with this debt around their neck.

James Smith-Jones ● 2306d11 Comments

Don't worry. With the economy collapsing, they won't get jobs so they will never have to pay back the loans. Consider the loans as 'gifted' by the State.

Steve Taylor ● 2306d

Yes, but the money borrowed is counted as a debt for mortgage purposes.

Anne England ● 2306d

No it isn’t counted as debt - it doesn’t appear on your credit file. It just impacts your affordability calculation

James Carter ● 2306d

yes 6% is to high.  They were talking about addressing it back in the May/Hammond days, but it does need serious fixing.I'm sure all the Nurses we need to train will like something less than 6% too, (since we now charge them fees )

Mike Chisholm ● 2305d

Well whichever way you put it, it is taken into account when applying for a mortgage - so what's the difference?

Anne England ● 2305d

Well Anne, research has shown that when people (Parent and students) misunderstand it and think of it as a debt it puts people off going to university. The way it works is it’s effectively a graduate tax, the more you earn the more you pay back.

James Carter ● 2305d

Yes it is a challenge, many students will have paid off their loan via work before they jump on the property ladder. If they are not working they won’t be applying for a mortgage. Those that are lucky enough to buy a property before they have paid off their student loan, probably will ask the bank of mum & dad. One way or another they will cope.

Jayne Thorburn ● 2305d

by my calculations the govt is clawing back far more money than it ever lends

Mike Chisholm ● 2305d

Don't worry. With the economy collapsing, they won't get jobs so they will never have to pay back the loans. Consider the loans as 'gifted' by the State.Covid-19 second wave is fast approaching and will see many more companies go bust and unemployment rise. Those that survive will be finished off when the reality of Brexit kicks in. Most student loans will not be repaid.

Steve Taylor ● 2304d

You and your blooming 2nd wave coming You missed out moron today i see ? Well without parent help my daughter is paying off her student loan while working andis house hunting at the moment. You have to crack on and have a goal while being sensible along the way Its no big  deal,you cope and go forward or you pay nothing. If you have goals and ambitions your likely get somewhere. Not for all but then how many go to uni with no goals,ambitions and not knowing what they want. Maybe some parents need an understanding and some giving help in what they want to do as some and i nean some just think uni is a blast from word of muth and take a degree in something that has no bearing to ambitions or having no ambitions. That is when you should take an alternative route

Julian Pavey ● 2304d

In fact the more you earn, the less you pay back, because you pay back more quickly. And with an interest rate of 6% p.a., that sum mounts up pretty quickly.

Sue Rowe ● 2304d