Off Topic The Politics Thread

[Staines R's]

Grimly hammering young people. Again.

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In essence I have no problem with people paying back a student loan if it leads them to a higher wage and the ability and wealth to pay that back.
However, in my opinion, the fact that these loans are subject to interest is wrong. They should be interest free

 

[Staines R's]

to be fair they sort of have.

A lot of banks are offering 3-3.7% instant access. Obviously inflation is eating away at it but that would have happened irrespective of the interest rate.

But my mortgage rate is nearly doubling from 3.99 % to almost 8’% so it seems they are taking a lot but giving back very little

 

[Star of David Bardsley]

In essence I have no problem with people paying back a student loan if it leads them to a higher wage and the ability and wealth to pay that back.
However, in my opinion, the fact that these loans are subject to interest is wrong. They should be interest free

At least low interest. They’ve moved it from RPI+3% to RPI so still horrifically high interest rates and effectively giving people on modest incomes a high tax burden, making it even less likely they can crack on in life with property etc.

I was lucky enough to be there when it was about £3k a year and paid it off relatively quickly. Don’t think I’d bother now which is a shame as I got a lot out of it other than getting lashed for most of the first two years.

 

[Staines R's]

At least low interest. They’ve moved it from RPI+3% to RPI so still horrifically high interest rates and effectively giving people on modest incomes a high tax burden, making it even less likely they can crack on in life with property etc.

I was lucky enough to be there when it was about £3k a year and paid it off relatively quickly. Don’t think I’d bother now which is a shame as I got a lot out of it other than getting lashed for most of the first two years.

Totally agree, but I really would go the whole hog and make it interest free.
A big problem seems to me is that many kids are going to university to do bullshit degrees that are meaningless and shack them up with massive debts that don’t lead to getting any jobs in the slightest.
The conspiracy theorist in me says that’s their aim….to shackle the youth with such debt that they wouldn’t dare take industrial action, whatever worse pay and conditions the bosses throw at them, for fear of not being able to pay it back

 

[BobbyD]

But my mortgage rate is nearly doubling from 3.99 % to almost 8’% so it seems they are taking a lot but giving back very little

not sure who you are with but 8% sounds a bit staggering. I believe most 2 year fixes range from 5 - 6% and 5 year fixes are going cheaper (they have long term interest rates going down). Even then mortgage rates are governed more by long term swap rates which are a predictor of BOE rates rather than what the BOE does immediately.

 

[Star of David Bardsley]

Totally agree, but I really would go the whole hog and make it interest free.
A big problem seems to me is that many kids are going to university to do bullshit degrees that are meaningless and shack them up with massive debts that don’t lead to getting any jobs in the slightest.
The conspiracy theorist in me says that’s their aim….to shackle the youth with such debt that they wouldn’t dare take industrial action, whatever worse pay and conditions the bosses throw at them, for fear of not being able to pay it back

Well yeah I’d agree with that but there are plenty of ‘worthy’ jobs that don’t pay well and need a degree, particularly in the public sector. If we already have a massive shortage of these now we shouldn’t be making it less appealing to tempt people into these professions.

Maybe Labour could change it some day. Maybe it’s just another scheme to **** the country as much as possible for when they eventually take over.

 

[Goldhawk-Road]

to be fair they sort of have.

A lot of banks are offering 3-3.7% instant access. Obviously inflation is eating away at it but that would have happened irrespective of the interest rate.

What banks do is offer enticing rates for new/prospective savers, while leaving existing variable accounts unchanged or even with reduced interest rates. Any account holder not focused, will lose out big time

 

[BobbyD]

At least low interest. They’ve moved it from RPI+3% to RPI so still horrifically high interest rates and effectively giving people on modest incomes a high tax burden, making it even less likely they can crack on in life with property etc.

I was lucky enough to be there when it was about £3k a year and paid it off relatively quickly. Don’t think I’d bother now which is a shame as I got a lot out of it other than getting lashed for most of the first two years.

i got **** all out of uni but did develop myself individually.

I know a lot of my uni friends got more out of it than myself but at todays rates i probably wouldn't want to go.

 

[BobbyD]

What banks do is offer enticing rates for new/prospective savers, while leaving existing variable accounts unchanged or even with reduced interest rates. Any account holder not focused, will lose out big time

100% this. The big high street ones and standard banks have done hardly anything on this. I've had to deliberately open up different bank accounts which is probably better as i now don't have everything stored in one place

 

[Star of David Bardsley]

i got **** all out of uni but did develop myself individually.

I know a lot of my uni friends got more out of it than myself but at todays rates i probably wouldn't want to go.

Yeah but now you own multiple takeaways and have a guitar-shaped swimming pool so it worked out fine.

 

[BobbyD]

Totally agree, but I really would go the whole hog and make it interest free.
A big problem seems to me is that many kids are going to university to do bullshit degrees that are meaningless and shack them up with massive debts that don’t lead to getting any jobs in the slightest.
The conspiracy theorist in me says that’s their aim….to shackle the youth with such debt that they wouldn’t dare take industrial action, whatever worse pay and conditions the bosses throw at them, for fear of not being able to pay it back

Well that's a pretty crap consipiracy. The student "loan" is basically a student tax.

If they never make enough they will never pay it off. My step sister is super bright but lazy doing a good degree at UCL (top london uni). She's lucky that her mum is going to leave her a bit, she's pretty frugal so she has chosen to work part time and not bother and chill rather than working and will never pay off her student debt until it expires.

If you don't earn enough you don't ever pay it back. Hence it's more a tax (they take it off your income)

 

[Staines R's]

not sure who you are with but 8% sounds a bit staggering. I believe most 2 year fixes range from 5 - 6% and 5 year fixes are going cheaper (they have long term interest rates going down). Even then mortgage rates are governed more by long term swap rates which are a predictor of BOE rates rather than what the BOE does immediately.

Halifax SVR 7.74 % so not a little player.

To be fair, I’ve only got 13k left to pay as I’ve regularly overpaid for years (up to the 10% threshold) due to the massive amount of overtime I used to work, so it won’t effect me that much. If I locked into another deal, being loocked into a 2-5 year deal made no sense as in the SVR I can pay back as much as I want. Adding to that I also start taking my old pension early next year with a good lump sum so I’ll pay off the lot.

 

[BobbyD]

Yeah but now you own multiple takeaways and have a guitar-shaped swimming pool so it worked out fine.

Precisely why uni isn't worth it. Send your kids to my academy we can get him started early for a fraction of the price

 

[Staines R's]

Well yeah I’d agree with that but there are plenty of ‘worthy’ jobs that don’t pay well and need a degree, particularly in the public sector. If we already have a massive shortage of these now we shouldn’t be making it less appealing to tempt people into these professions.

Maybe Labour could change it some day. Maybe it’s just another scheme to **** the country as much as possible for when they eventually take over.

I dunno about other jobs but the LAS offers the chance for EMTs (like me) to do a 2 year Paramedic degree, free and while working. Seems a good deal and definitely something I would have done if I was younger.
Sadly I’m an old bastard who’s looking at leaving in the next 5 years so it wouldn’t make sense for me to take on the stress for such little gain.

 

[BobbyD]

Halifax SVR 7.74 % so not a little player.

To be fair, I’ve only got 13k left to pay as I’ve regularly overpaid for years (up to the 10% threshold) due to the massive amount of overtime I used to work, so it won’t effect me that much. If I locked into another deal, being loocked into a 2-5 year deal made no sense as in the SVR I can pay back as much as I want. Adding to that I also start taking my old pension early next year with a good lump sum so I’ll pay off the lot.

Oh, yea the SVR's are always a a couple of percent over the standard fixed or tracker rates.

You're better off redoing it but to be fair 13k is hardly anything.

The good thing about keeping a mortgage it makes it hard for would be scammers to steal your property (especially if you go on holiday).

If you ever pay it all off, it's worth letting the land registry automatic alerts in case anyone tries to change the land registry to your house

 

[Staines R's]

Well that's a pretty crap consipiracy. The student "loan" is basically a student tax.

If they never make enough they will never pay it off. My step sister is super bright but lazy doing a good degree at UCL (top london uni). She's lucky that her mum is going to leave her a bit, she's pretty frugal so she has chosen to work part time and not bother and chill rather than working and will never pay off her student debt until it expires.

If you don't earn enough you don't ever pay it back. Hence it's more a tax (they take it off your income)

But when the threshold of paying it back is set low at £25k, it’s hardly a massive wage of champagne and caviar.
Plus adding to the fact it’s a gonna be a yoke around your neck now for 40 years, it doesn’t make it a great proposition

 

[Staines R's]

Oh, yea the SVR's are always a a couple of percent over the standard fixed or tracker rates.

You're better off redoing it but to be fair 13k is hardly anything.

The good thing about keeping a mortgage it makes it hard for would be scammers to steal your property (especially if you go on holiday).

If you ever pay it all off, it's worth letting the land registry automatic alerts in case anyone tries to change the land registry to your house

As I said mate, it’ll be paid off next year plus I have the ability to over pay by a much larger amount without penalty (over double what they are asking) so locking into a fixed rate for 2 years really doesn’t make sense

 

[BobbyD]

But when the threshold of paying it back is set low at £25k, it’s hardly a massive wage if champagne and caviar.
Plus adding to the fact it’s a gonna be a yoke around your neck now for 40 years, it doesn’t make it a great proposition

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For the new year (i'm assuming this goes up yearly or is it when you borrow it?).

It's incremental though, so it's not like at 25k you suddenly have no more additional income and everything going off onto your loan.

Just had a read it'll be an additional 10% that you pay on everything above that threshold. I'm not against this as it's the price you pay for going to uni.

Where it's absolute scandalous is that the interest accrued on top of the student loan is super high and has been sold off to private companies.

 

[BobbyD]

As I said mate, it’ll be paid off next year plus I have the ability to over pay by a much larger amount without penalty (over double what they are asking) so locking into a fixed rate for 2 years really doesn’t make sense

yeah, absolutely, its good to have options and you will know your own situation the best

 

[Staines R's]

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For the new year (i'm assuming this goes up yearly or is it when you borrow it?).

It's incremental though, so it's not like at 25k you suddenly have no more additional income and everything going off onto your loan.

Just had a read it'll be an additional 10% that you pay on everything above that threshold. I'm not against this as it's the price you pay for going to uni.

Where it's absolute scandalous is that the interest accrued on top of the student loan is super high and has been sold off to private companies.

I assume that’s a gross salary ? 25k after tax and NI really ain’t a great wage

And of course you should be also paying into a pension as the state pension will be 80 if those in charge get their way