University Fees & Student Loans

[wanderer]

Interest rate capped to 7.3% until August. Admittedly, not pretty, but not 19%+3%

[1nvest]

In the end we funded the fees and associated costs. Whether this will be prove to be a good decision financially or not remains to be seen. The funds could have provided a deposit for a house purchase or as wanderer says there may, in the future, be a graduate fees rebate.

Good point, Biden has been promoting student loan forgiveness recently and perhaps a future (popularity seeking) Labour government might also.

Or your kids may decide to emigrate when, in practice if not in theory, any student loan is unlikely to ever be repaid.

Indeed foreign companies are becoming more aware of offering remuneration packages to migrating UK candidates whereby the salary is below UK student loan repayment level, supplemented with "benefits".

[didds]

Indeed foreign companies are becoming more aware of offering remuneration packages to migrating UK candidates whereby the salary is below UK student loan repayment level, supplemented with "benefits".

Presumably UK companies cannot do similar because the "benefgits" are actually viewed as hidden income which then, added on, breaches the threshold under UK law?

hey ho...

[dgd975]

Paid my daughter's loan when graduated. She has to pay it back into my ISA at cost +2%. I lose stock market growth. I gain guarantee similar to a low rate Money Market Fund pre-retirement. She avoids the anger in her 40's & 50's of paying £100k for £40k education fees.
Student Loan articles on BBC raise a smile now. She is happy and great feeling in a group when you're better off financially. Yes, she did a course which fills YouTube with frustrated colleagues desperate to pay off their loans
The cost of kids has to be borne when you know about compound interest on a loan.

[didds]

- if he's not a big earner he will never pay off the loan anyway, and he has the money available in the ISAs to save or spend as he wishes
- if it does look like he's going to be a big earner then with the ISAs he will have enough available to pay off the loans, assuming they have grown at roughly the same rate as the interest on the loan.
- if he wants to go on and study further (a masters degree or whatever), then those savings could also be utilised when these is no loan available for support

I think the loans/graduate tax system is really not sustainable (very high and punitive marginal tax rates) and can see them being written off or substantially restructured in future. Best to follow the herd rather than be prudential it seems to me and be in a position to benefit from the graduate debt jubilee, if it comes. .

Thats pretty much my take on it.

Seems to me that the only realistic impact on a loan holder is that the loan is taken into consideration when applying for a mortgage. And if you aren't earning enough to be paying the loan off, then you aren't going to get a mortgage anyway on your income level.

Also seems to me if somebody pays the fees in a advance they are possibly paying for something that may never ever need to paid off anyway. (which is part and parcel of why the entire student loans system is unsustainable).

[Gerry557]

I see it more of a tax than a loan.

I probably wouldn't pay it off but give the person the money instead. I know several people who will never pay it off or what about mid thirties female who wants a family afterwards, I can't see her working life being long enough.

I know one person who did his masters and earns a big amount who might have been worth paying off his "loan" Although his will be paid off in a couple of years anyway.

I suspect it's a hindsight call for most people to see which would be better.