Student Loans maybe privatized

[stuff_it]

It was still partial loans when I did college. If it had not been I would have still been paying off that debt when I bought my house and I would have been refused the mortgage (I was told I could not get the amount I wanted, but then they noticed the loads last installment was paid off 'the week' before, very lucky).
It the set up was like it is today I would not have even gone to college, it would just be too risky. Life would be very different, and I am not sure what I can do for my daughter when she grows up. Even when I was at Ealing college it was fairly obvious that most people there were from loaded families. I was an independent student so did not need money from my family (not that that makes any difference now).

Don't forget that they are still making student debt an attractive option by making not going even less attractive.

 

[Dandred]

Meh, I haven't paid a penny since leaving uni, been living in quite a few different countries since then.

If they want to try and get money back from me here in Korea they can try all they like. As I have nothing in my name here at all, I doubt they will be very successful.

 

[brogdale]

If they can change the repayment threshold, would they be able to change it downward. Like to zero?

Here's what those with a 2012/13 loan have signed:-

You must agree to repay
your loan in line with the regulations that apply at
the time the repayments are due and as they are
amended. The regulations may be replaced by
later regulations.

So...yep, in theory, they (the bankstas) could.

 

[taffboy gwyrdd]

Privatisation will obviously push the interest rates up.

As a general point I detest the way the LDs fob off concern at the £9k p.a fees by repeating the thing about not having to pay back till earning over X.

For one thing, the longer one goes with out earning X, the more one will pay.

But most importantly it is a specifically anti-aspiration measure to build in a mechanism to discourage people from earning over X.

People may think "pah - I'll never pay it back, I'll just keep earning lower than X".

Well, X can change and it is a thought that will probably become extremely limiting on life choices.

 

[chilango]

Privatisation will obviously push the interest rates up.

As a general point I detest the way the LDs fob off concern at the £9k p.a fees by repeating the thing about not having to pay back till earning over X.

For one thing, the longer one goes with out earning X, the more one will pay.

But most importantly it is a specifically anti-aspiration measure to build in a mechanism to discourage people from earning over X.

People may think "pah - I'll never pay it back, I'll just keep earning lower than X".

Well, X can change and it is a thought that will probably become extremely limiting on life choices.

People aren't choosing to earn below the threshold to avoid repaying.

 

[bi0boy]

People aren't choosing to earn below the threshold to avoid repaying.

Some people are actually. If you faced paying £150 a month if your salary went up by £10 a month, wouldn't you ask your employer not to bother with the pay rise?

 

[chilango]

Oh, Ok.

 

[brogdale]

People aren't choosing to earn below the threshold to avoid repaying.

More than that, some of this year's intake that I have spoken to, are embarking upon their degree with the knowledge that such a lifestyle choice might make sense for them. What a shame.

 

[chilango]

Lucky them if they're in a position to choose!

There's plenty of us who 20 years on who have never been able to get jobs that pay over the threshold (or done so only briefly). That's a situation that has steadily gotten worse.

 

[weepiper]

Lucky them if they're in a position to choose!

There's plenty of us who 20 years on who have never been able to get jobs that pay over the threshold (or done so only briefly). That's a situation that has steadily gotten worse.

Yup... the only time I've been over the threshold and been unable to defer was when I was working two days a week getting paid £8.52 an hour and the combination of Housing Benefit, Child Benefit and Tax Credits tipped me over. And yes, they do take those as 'income'.

 

[Sprocket.]

Debt slaves.
They way the finance industry works today, you'll never know where you stand and a soon as you do work it out, they'll change the goal posts.
I feel sorry for our future generation having all this crap at the beginning of their lives it's just wrong

The first two words say it all. Debt slaves.
One day in Lalaland the buffoons that we poltroons allow to exploit us, one wag said,''Who haven't we been able to exploit and break the will of yet'', their colleagues said, ''students and the sick'' and altogether the swine who enjoyed a privileged station in society(whatever that is) who got there because of a free and unhindered education stopped anyone else from escaping the drudgery that comes with debt overload.
Nice world innit? Once you stop learning you are in the shit, how long until debt management companies and bailiffs are knocking on the door?
They will offer to buy the debt from the student loan providers and come after all defaulters with a big stick and the law in tow.
Sadly if you do pay the debt, when you can afford to look at buying a little spot somewhere you can borrow the money and for every pound you borrow you will pay approx fifteen back at the present rate for thirty years, come on now nose to the grindstone.
Bastards,bastards, and more bastards!!!

 

[Sprocket.]

What would happen if we all got together and declared bankruptcy?

 

[barney_pig]

Tempting fate, but haven't heard anything from them since graduating two years ago
(If anyone asks, you haven't seen me.)

 

[Sprocket.]

Tempting fate, but haven't heard anything from them since graduating two years ago
(If anyone asks, you haven't seen me.)

True.

 

[brogdale]

Lucky them if they're in a position to choose!

There's plenty of us who 20 years on who have never been able to get jobs that pay over the threshold (or done so only briefly). That's a situation that has steadily gotten worse.

I take your point....but I wouldn't describe this cohort as lucky in any sense.

I suppose I was trying to say that it seems a shame that those kids going through this debt creation process are, from the outset, incentivised to have low expectations/ambitions of what they might earn in future. You might almost think they'd designed the system to achieve that?

 

[chilango]

I take your point....but I wouldn't describe this cohort as lucky in any sense.

I suppose I was trying to say that it seems a shame that those kids going through this debt creation process are, from the outset, incentivised to have low expectations/ambitions of what they might earn in future. You might almost think they'd designed the system to achieve that?

Aye.

I agree with you completely.

Anyway,I don't wanna talk about it anymore. It's depressing.

 

[brogdale]

Aye.

It's depressing.

It is that. You've probably twigged that I am the parent of one of the 2012/13 cohort; hence my anger...particularly when he only missed out on the 'cheaper' 2011/12 course due to health reasons necessiatating a 3 year sixth.

 

[chilango]

 

[spacemonkey]

On my last annual statement from the SLC on a loan of £13,000k I paid back £160.67 and the interest was £160.58.

I calculated at that rate of repayment, the balance would be paid off sometime around the 56th century.

 

[brogdale]

indeed.

That chronic condition has cost him at least £18k extra in tutition fees to add to his total debt burden on the 'Plan 2' style, new loans. This bankstas' scam has them paying up for a loan that increases at RPI +3% (currently6.6%) all the time they're studying, thereafter at RPI and when they start paying back at an unspecified 'RPI +':-

Scandalous (mentally punches Clegg mush)



Your circumstancesInterest rate
While you are studying on your course RPI + 3%
From the April after you have graduated or left your course, but before April 2016 RPI
After April 2016 while you are earning up to £21,000 per year RPI
After April 2016 while you are earning over £21,000 RPI + percentage based on your salary
After April 2016 while you are earning over £41,000
RPI + 3%

 

[ItWillNeverWork]

According to this student loan repayment calculator, if the system stays as it is I won't do too bad. Will end up paying back less than I borrowed; about £330 a year. Of course, that is presuming they cancel the debt after 30 years and don't change other repayment conditions. If they ever change it so the bailiffs are chasing me down regardless of my income or employment status, they can fuck right off. I'll just go an live in Brazil or something.

 

[geminisnake]

One of my three loans was privatised a few years ago (to "Thesis Servicing") It just means I get two letters about everything instead of one.

Mine are all with Thesis now but I've only got 2 more deferments to make and they can swivel Not sure when the cut off point was but certainly up to 1998 loans get written off when you hit 50 Never heard naff all about hubby's loans the last 2 Aprils.

 

[Brixton Hatter]

1991.

in a phone conversation a few months ago.

I'm pretty sure the old style loans from the 90s (I had one) had a clause where if you haven't paid them back after 25 years, the loan is waived - you might want to check that out, cos 2016 will be 25 years since your loan.

 

[bi0boy]

Mine are all with Thesis now but I've only got 2 more deferments to make and they can swivel Not sure when the cut off point was but certainly up to 1998 loans get written off when you hit 50 Never heard naff all about hubby's loans the last 2 Aprils.

I've got 16 years to go

It's a massive PITA deferring each year, this time round they claimed they never received my application (not the first time that's happened when I've sent it near the deadline ) which of course means they want to start collecting repayments already. They don't have my bank details so they can GTF though.

 

[bi0boy]

I'm pretty sure the old style loans from the 90s (I had one) had a clause where if you haven't paid them back after 25 years, the loan is waived - you might want to check that out, cos 2016 will be 25 years since your loan.

Yep looks like it:

Under certain circumstances we may cancel your liability to repay your loan. We will not cancel your liability to repay if you are behind on any repayments for a student loan.

For example, your loan may be cancelled if:

• You were under the age of 40 when your last agreement for a student loan was made and you reach the age of 50.
• You were aged 40 when your last agreement for a student loan was made and you reach the age of 60.
• Your last agreement for a student loan has been outstanding for no less than 25 years.

If you are permanently unfit for work and can provide evidence to show that you receive disability related benefit we may also be able to cancel your liability to repay your loan.

 

[Fez909]

Student Loan interest rates to go up so high they will never be paid off.

So, so much wrong with that article. This is my favourite bit, though:

In the report, dubbed Project Hero, the authors suggest a script for ministers to persuade graduates to accept the worsening of their conditions. "We all live in difficult times," they suggest ministers argue. "You have a deal which is so much better than your younger siblings (they will incur up to £9,000 tuition fees and up to RPI+3% interest rates)".

This coming from the generation that didn't even pay to go to University and got free money thrown at them. How about they show some fucking gratitude to those younger than themselves who have it so much harder by either coughing up some money or, preferably, killing themselves.

 

[barney_pig]

Tempting fate but graduated 3 years ago and haven't heard a thing from them. Perhaps it's the only earning £10k pa.

 

[butchersapron]

Ready for a bit of cyprus troika style robbery old students?

Raise interest rates on old student loans, secret report proposes

A confidential report commissioned by the government has proposed redrawing the terms of student loans taken out over the past 15 years, that would make them more expensive to pay back for 3.6 million borrowers in England alone.

The proposal to increase the interest rates on the £40bn worth of loans is the most controversial of a series of options contained in a Whitehall-commissioned study examining how the coalition could privatise the entire stock of student loans issued since 1998.

Increasing the amount that students would be forced to pay back would make the loans more attractive to buyers.

The document, prepared by Rothschild investment bank, was submitted to the business department in November 2011, but is understood to still be under active review. It has never been made public, or been seen by higher education professionals.

Any move to increase the interest rates on loans already taken out could add extra years of repayments even for those who left university long ago.

 

[brogdale]

Student Loan interest rates to go up so high they will never be paid off.

So, so much wrong with that article. This is my favourite bit, though:



This coming from the generation that didn't even pay to go to University and got free money thrown at them. How about they show some fucking gratitude to those younger than themselves who have it so much harder by either coughing up some money or, preferably, killing themselves.

Yes, so much wrong...but this appears to be the crux of the matter:-

Increasing the amount that students would be forced to pay back would make the loans more attractive to buyers.

The bankerment have realised that the derivative instrument sell-off needs to be made more attractive to yield income for the treasury. Simples...make the graduates pay more.

 

[geminisnake]

It's a massive PITA deferring each year, this time round they claimed they never received my application (not the first time that's happened when I've sent it near the deadline )

Always, always get proof of posting. It's free but does mean you have to go to the PO. Keep the receipt in a safe place til they send your deferment letter