The Big Finance, Money and Economics thread

Project Zeus

Stuart Pearce
Student loan interest will increase to 12% this year. The Bank of England's base rate is currently 0.75% ffs.

For context, you'd need to earn around £80k a year just to pay the interest on the loan. Average debt was £45k for those who graduated in 2020.

Sent from my SM-G990B using Tapatalk
 

Strummer

Orel Mangala Fan Club
Student loan interest will increase to 12% this year. The Bank of England's base rate is currently 0.75% ffs.

For context, you'd need to earn around £80k a year just to pay the interest on the loan. Average debt was £45k for those who graduated in 2020.

Sent from my SM-G990B using Tapatalk

That is disgraceful robbery.

At this point, I’d like to point out - again - that certain other major European countries manage to provide University education free of direct charge to their citizens, because the costs come from general taxation.

You’re being taken for absolute mugs.
 

Master Yates

John Robertson
Student loan interest will increase to 12% this year. The Bank of England's base rate is currently 0.75% ffs.

For context, you'd need to earn around £80k a year just to pay the interest on the loan. Average debt was £45k for those who graduated in 2020.

Sent from my SM-G990B using Tapatalk

Ridiculous


Sent from my iPhone using Tapatalk
 

Captain Sinister

Senior doom Monger
A young doctor (not THE young doctor, presumeably)shared her Student Loan position on the Beeb this morning.
Her debt last year (when she was earning sufficient and repaying the loan via the additional tax %)increased from £72k to £76k... and that was before the projected increase in interest rate.
And if my arithmetic and grasp of the facts are correct, the repayments are 9% of income when your income is >£20184.
As most student loans these days are >£50k, then 12% interest on that £50k would be £6,000.
Assuming you are just above the earnings threshold at, say, £21000 you repay 9% of that, which is £1,890.
If you are to pay the interest only you have to be earning £66,666.
Only when you are above that £66,666 per annum will your 9% start to reduce your student loan capital balance.
Is it just m, or is this an absolute donkey's breakfast of a system?
 

congo_red

Ale ape.
Is it just m, or is this an absolute donkey's breakfast of a system?

Well, that depends on whether you're the doctor, forced to keep working within the system in the hope that you can, one day, be debt free, but until such time as you are providing guaranteed labour for those who need the system to work...

...or whether your one of those that control the system and live an easy life on the backs of other people's forced labour.
 

Strummer

Orel Mangala Fan Club
A young doctor (not THE young doctor, presumeably)shared her Student Loan position on the Beeb this morning.
Her debt last year (when she was earning sufficient and repaying the loan via the additional tax %)increased from £72k to £76k... and that was before the projected increase in interest rate.
And if my arithmetic and grasp of the facts are correct, the repayments are 9% of income when your income is >£20184.
As most student loans these days are >£50k, then 12% interest on that £50k would be £6,000.
Assuming you are just above the earnings threshold at, say, £21000 you repay 9% of that, which is £1,890.
If you are to pay the interest only you have to be earning £66,666.
Only when you are above that £66,666 per annum will your 9% start to reduce your student loan capital balance.
Is it just m, or is this an absolute donkey's breakfast of a system?

A medical graduate in Germany can study at university for around €500 per term, plus food.

University education is funded by general tax revenue - everyone pays, and Germans are happy to do so, to ensure the education of the next generation (whose taxes will fund their pensions!)

The same applies for technical schools (think, vocational and trade colleges) which are also highly regarded in Germany. Manual trades carry a high level of respect, that frankly surprised me.
 

MaxiRobriguez

Bob McKinlay
A young doctor (not THE young doctor, presumeably)shared her Student Loan position on the Beeb this morning.
Her debt last year (when she was earning sufficient and repaying the loan via the additional tax %)increased from £72k to £76k... and that was before the projected increase in interest rate.
And if my arithmetic and grasp of the facts are correct, the repayments are 9% of income when your income is >£20184.
As most student loans these days are >£50k, then 12% interest on that £50k would be £6,000.
Assuming you are just above the earnings threshold at, say, £21000 you repay 9% of that, which is £1,890.
If you are to pay the interest only you have to be earning £66,666.
Only when you are above that £66,666 per annum will your 9% start to reduce your student loan capital balance.
Is it just m, or is this an absolute donkey's breakfast of a system?

It's why some people want to call it a graduate tax rather than a loan, because for the majority of graduates who are reasonable earners it is simply a tax.

The problem is though that the current system can be altered significantly in ways that trying to do so with tax would spark riots. Take for example the NIC rises. For most people that's going to mean an extra couple hundred quid a year extra to pay, give or take a hundred either way. Compare with mooted plans to make student loans repayable over forty years rather than thirty and that would add an extra 2k minimum for graduates each year over that extra ten year period. Even reasonable earners would end up paying an extra 30-40k for that change.

The problem with the student loan system is that it's not a loan. A loan is, boiled down, a contractual payback period with a defined interest rate. The student loan is neither of those things, so whenever there's economic hardship you can bet your boots the government of the day will look to squeeze Yong people as they always do because they don't vote in the same numbers was older people.
 

Ilson

Youth Team
Sixty-six million years ago, ancient giant ground sloths consumed avocados whole, traveled long distances.
There’s a lot that can happen in 66 million years, but surely the prehistoric giant ground sloths would have never dreamed that these two seemingly separate entities—avocados and real estate—could be as intrinsically tied as they are today.
 

Strummer

Orel Mangala Fan Club
Yes but don't worry, Labour come to power in a few years time under young whippersnapper Tony Blair and we enter a period of Cool Britannia which we don't look back from. Hang in there, it gets better.

Until of course his chancellor sells all the U.K.‘s gold reserves for a handful of beans (but apparently they’ll grow into a huge beanstalk) and then Blair himself sort of blots his copybook by supporting a narcissistic US-regime who want to turn little Iraqi kids into skeletons?
 

Strummer

Orel Mangala Fan Club
Russia invaded Ukraine because of Brexit? Who knew Vladimir was such a fan of the EU...

Haven’t you heard?

He’s such a fan, he’s trying to destroy it politically, so that he can also annex the Baltic republics, Moldova, and potentially parts of Poland.

Be grateful you’re no long sat in Gladbach, waiting for Russian tanks to rumble through the Fulda Gap.
 

Project Zeus

Stuart Pearce
Stock markets are taking an absolute pummelling at the moment.

Thank goodness I've not invested my savings in a desperate attempt to get into the one market that will never, ever crash.

Sent from my SM-G990B using Tapatalk
 

Phooey

Jack Armstrong
Haven’t you heard?

He’s such a fan, he’s trying to destroy it politically, so that he can also annex the Baltic republics, Moldova, and potentially parts of Poland.

Be grateful you’re no long sat in Gladbach, waiting for Russian tanks to rumble through the Fulda Gap.
I see it now; he's going to expand from the East into EU territory then turn the whole lot into a kind of EUSSR. Makes perfect sense now.

As for the tanks, we had a visit from the as control people when I was in a unit with armour and it turns out that the Soviets hadn't actually got any working tanks back in the day. They were short of spare parts and so badly paid that anything that came in was immediately sold on the black market. For years they just falsified reports to their bosses and prayed that they didn't have to go to war. Obviously a lot has changed in Russia since then...
 

Fawazzock

Jack Armstrong
Any advice for someone saving for their first family home??

Got most savings in crypto, some in stocks, no cash.

Still got at least 6 months before I can afford anywhere. Ideally save a bit longer to get somewhere bigger, but moving targets…
 

Project Zeus

Stuart Pearce
Any advice for someone saving for their first family home??

Got most savings in crypto, some in stocks, no cash.

Still got at least 6 months before I can afford anywhere. Ideally save a bit longer to get somewhere bigger, but moving targets…
The best thing you can do is be born fifty years ago, or have rich parents.

Sent from my SM-G990B using Tapatalk
 

Raymondo Ponte'

It's all about mid-table...
The best thing you can do is be born fifty years ago, or have rich parents.

Sent from my SM-G990B using Tapatalk

Ya dont ev to ev rich parents really, as long as thee own their home ya laffin.

Thats all I hear nowadays... Inheritance and when thi can get thee hands onnit.
 
Top Bottom