On 25/07/17 10:20, Dave Liquorice wrote:
> On Mon, 24 Jul 2017 17:25:07 -0700 (PDT),
tabb...@gmail.com wrote:
>
>>> We'll tell the kids that they need not pay any University fees,
> we'll
>>> wriggle out of it later.
>>> The complete process is corrupt. Pity the kids can't see it.
>>
>> I find it odd that people seem to just believe what they want to be
>> true.
>
> They just read and believe the headline, they don't bother reading
> the story. Which will carry the bias of which ever rag they are
> reading.
>
> I don't think Labour ever said they would write off existing Student
> Loans only that they would "look for ways" of doing so. They might
> fiddle with the current system, which wasn't broken until some smart
> arse allowed the fees to rise and changed the Maintenance element
> from a grant to loan, that instantly adds £25290 to the £27750 Fees
> loan (17-18 academic year), making £53040+ for the average 3 year
> course outside London.
>
> That level of loan just isn't going to get paid back, even before the
> Maintenance Grant was added only about 1/3 of the loans where paid
> off, that's going to drop even lower making the debt far less
> attractive for investors. Mind you with interest whilst studying and
> util the April after you finish of RPI + 3%, then RPI (income below
> 21k) to RPI + 3% (Income > 41k) perhaps paying off the loan isn't
> important.
>
> Say a graduate has income of £25k, they'll pay back 9% of 25 - 21 =
> £360. RPI at 2% gives interest of £1060 on £53k... At 41k income they
> pay back £1800 but the interest is now 5% = £2650. A graduate has to
> earn over £50k just to pay the interest. Simplistically add another
> £20k to a graduates income to pay back the "capital" inside the 30
> year write off period.
It's a Graduate Tax in all but name, if you earn enough you pay that
extra tax, if you don't earn enough you don't pay the tax though you
will have than repayment/tax liability hanging around for 30 years.
If the 'debt burden' makes students a bit more questioning of the value
of a 'degree' and the sort of degree that adds enough value to justify
the expense then it is a good thing.
>
> How many graduates will start on £70k, indeed how many will get to
> £70k in 30 years...
>
> The maths just add up, either I've got something wrong or economics
> are even weirder than I think they are.
>
--
djc
(▀̿Ĺ̯▀̿ ̿)
No low-hanging fruit, just a lot of small berries up a tall tree.