Student Loans maybe privatized
- Thread starter gosub
- Start date
stethoscope
Well-Known Member
.
Wolveryeti
Detty Pig
1. is there an age limit? so for example would they be cool giving me, coming on 50 years old as much as I could screw out of them?
No - but you are only allowed one.
2. are they means tested against income /capital?
Just income. Repayment is 9% of whatever you earn above ~18k (pre 2012) or 21k (post 2012). The interest rate on post 2012 loans is also on a sliding scale up to RPI+3% depending on income.
3. Does the debt die with you or get levied to your estate?
Written off between 25-35 years or when you are 65 (depending when you took it out)
No - but you are only allowed one.
2. are they means tested against income /capital?
Just income. Repayment is 9% of whatever you earn above ~18k (pre 2012) or 21k (post 2012). The interest rate on post 2012 loans is also on a sliding scale up to RPI+3% depending on income.
3. Does the debt die with you or get levied to your estate?
Written off between 25-35 years or when you are 65 (depending when you took it out)
brogdale
Coming to terms with late onset Anarchism
Bahnhof Strasse
Met up with Hannah Courtoy a week next Tuesday
Three grand rebate in exchange for paying >£10k more in interest? How did these people ever gain places at a university in the first place?
maomao
普費斯
Well if you're counting on never ever paying it back in the first place why not?
Pickman's model
Starry Wisdom
C4U
brogdale
Coming to terms with late onset Anarchism
This bit is enough to make you weep...the poor fuckers are so brainwashed by the austerity/debt myth that they're attempting to offer up a "fiscally neutral solution" to spaffer Johnson.
Bahnhof Strasse
Met up with Hannah Courtoy a week next Tuesday
Bahnhof Strasse
Met up with Hannah Courtoy a week next Tuesday
Well, yeah, worth going to Uni if you don't envisage ever earing more tan £27K a year...
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Pickman's model
Starry Wisdom
Most people envisage earning more than £27 a day
maomao
普費斯
For long enough to pay back a loan. I've just taken a student loan, and am taking more, ages 46. Looking at the interest rates and amount payable back I'm not confident of paying it back before repayment.
redsquirrel
This Machine Kills Progressives
Most people will have some of what they 'owe' written off. That is why the ONS insisted that student loans be added as aa deficit item to the government accounts.
brogdale
Coming to terms with late onset Anarchism
True enough, but the fact that fincap are prepared to pay 50% of loan-book 'value' leads me to believe that the ONS estimate of 38% repayment is possibly awry.
maomao
普費斯
The 38% is 38% of debt interest whereas book value is just the debt itself though. And the interest is ridiculous.
brogdale
Coming to terms with late onset Anarchism
maomao
普費斯
Sorry, my typing error. I meant loan and interest, as opposed to just loan.
brogdale
Coming to terms with late onset Anarchism
OK, but I thought that part of the attraction for fincap of purchasing the loan book value was also the revenue stream from the accrual of interest?
maomao
普費斯
So 50% of loan value is profitably enough lower than 38% of loan and interest to make it worthwhile. And considering a good proportion of the loans will be piling up interest for thirty years with only negligible amounts paid off and even the highest earners will be paying a fair whack in interest isn't surprising.
maomao
普費斯
Back of an envelope calculation suggest that an average debt of 35k and 3% interest means that while you might start chipping away at the interest when you're earning over 25k, you need to be earning over 35k to touch the debt itself.
My undergraduate loan was linked to average interest rates and paid back at fuck all interest from 2008 onwards.
My undergraduate loan was linked to average interest rates and paid back at fuck all interest from 2008 onwards.
not-bono-ever
meh
Expect erosion of the min salary threshold to make this profitable
brogdale
Coming to terms with late onset Anarchism
ItWillNeverWork
Messy Crimbobs, fellow humans.
ffs 
Pickman's model
Starry Wisdom
I hope the shitty labour students who got the nus policy on student finance changed at the 95 conference are proud of themselves, moving away from a principled return to 1979 level grants and access to benefits. That's the moment that this all went proper pear-shaped and opened the door for the Tory review of student finance and Blair's imposition of tuition fees. And it all got worse from there
nogojones
spelling is overrated
I was considering going to uni over the last couple of years, not because I want a degree, but more to screw the student finance people for everything I can, knowing full well that I'm a lazy cunt that ain't ever gonna put the effort in to get a job that pays more than I need for subsistance. I'm assuming the debts get written off at retirement?
Now I just need to figure out which course is the easiest to coast through over the next 3 years. I don't even care if I pass or fail as long as the cash flows
Now I just need to figure out which course is the easiest to coast through over the next 3 years. I don't even care if I pass or fail as long as the cash flows
Anything relating to media or film.
might not want to put that reasoning in your UCAS personal statement.
loans taken out now get written off after 30 years. not necessarily at retirement. the limit to age 65 was a feature of student loans taken out before 2006 I think but not anymore.
your other options for a write off are death or becoming permanently medically unfit to work.
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