Failed minimum wage?

[Cyclone 10]

So what about the millions of students lumbered with debt on £18000 threshold?? It doesn't automatically jump to 25 grand.

 

---------- Post added 22-08-2018 at 07:39 ----------

 

And do you know how high interest rates are? Guessing probably not.

 

Plan 1 - loans taken out before Sept 2012

"you will pay 9% of anything you earn over £18,330 before tax per year."

 

Plan 2 - after 1st Sept 2012

"The current thresholds for repayment are £25,000 a year, £2,083 a month or £480 a week. You pay 9% of your income over the threshold."

 

---------- Post added 22-08-2018 at 09:32 ----------

 

a) 37x12= £444

b) it doesn’t get repaid back it gets written off after 25 years.

 

So you only pay back £11k on a £50k loan plus interest. What exactly is the problem?

 

So £37 a month in repayments is too much for a salary of £30k. Ok

 

30 years for plan 2.

[ez8004 10]

Plan 1 - loans taken out before Sept 2012

"you will pay 9% of anything you earn over £18,330 before tax per year."

 

Plan 2 - after 1st Sept 2012

"The current thresholds for repayment are £25,000 a year, £2,083 a month or £480 a week. You pay 9% of your income over the threshold."

 

---------- Post added 22-08-2018 at 09:32 ----------

 

 

30 years for plan 2.

 

Ok, so you repay £13k on a £50k loan plus interest. Sounds like a pretty good deal to me.

[Cyclone 10]

You don’t pay anything towards it unless you earn over £25,000. Even if you earn £40,000 you only payback £112/month. Let’s be honest, if you’re earning £40,000 a year, you won’t be missing £112 a month.

 

The £112 is correct of course, but I doubt that it's an amount you won't be missing.

 

With just a simple scenario (tax and NI only) the takehome there is £2,548.41/month. So losing another £112 is 5% of your net income.

A more realistic scenario would have pension payments involved, and then there are you fixed living costs, mortgage/rent, bills, food, etc...

 

If we want to look at it like a tax then we can do, but it's highly unfair IMO to not have created a graduate tax that actually applies to all graduates no matter when they went to university. Why did I get a free ride simply for being a few years older? Why should I continue to get a free ride whilst younger graduates pay a higher rate of tax! Surely I (and everyone like me) is actually in a better position to contribute to that tax, established career, house paid for, etc...

 

---------- Post added 22-08-2018 at 09:52 ----------

 

Ok, so you repay £13k on a £50k loan plus interest. Sounds like a pretty good deal to me.

 

Sounds like a worse deal than any generation previously...

 

That calculation is based on an average career salary of 30k? That would be a terrible career wouldn't it?

[alchresearch 214]

Of course it costs £50,000.- £9,000 a year x 3 (or 4) plus living expenses.

 

Why are living expenses always lumped into the cost of higher education?

 

Do you live for free if you're young and not at uni? Of course not.

[chakademus 10]

a) 37x12= £444

b) it doesn’t get repaid back it gets written off after 25 years.

 

So you only pay back £11k on a £50k loan plus interest. What exactly is the problem?

 

So £37 a month in repayments is too much for a salary of £30k. Ok

 

Incorrect 30 years. And those graduating 2000 to 2012 how much they paying back?

 

---------- Post added 22-08-2018 at 11:24 ----------

 

The £112 is correct of course, but I doubt that it's an amount you won't be missing.

 

With just a simple scenario (tax and NI only) the takehome there is £2,548.41/month. So losing another £112 is 5% of your net income.

A more realistic scenario would have pension payments involved, and then there are you fixed living costs, mortgage/rent, bills, food, etc...

 

If we want to look at it like a tax then we can do, but it's highly unfair IMO to not have created a graduate tax that actually applies to all graduates no matter when they went to university. Why did I get a free ride simply for being a few years older? Why should I continue to get a free ride whilst younger graduates pay a higher rate of tax! Surely I (and everyone like me) is actually in a better position to contribute to that tax, established career, house paid for, etc...

 

---------- Post added 22-08-2018 at 09:52 ----------

 

 

Sounds like a worse deal than any generation previously...

 

That calculation is based on an average career salary of 30k? That would be a terrible career wouldn't it?

 

Average wage in Sheffield is £18k.

 

---------- Post added 22-08-2018 at 11:25 ----------

 

Why are living expenses always lumped into the cost of higher education?

 

Do you live for free if you're young and not at uni? Of course not.

 

Cos students take out a maintenance loan, they don't work full time.

 

---------- Post added 22-08-2018 at 11:26 ----------

 

On a masters upwards you might not work at all.

 

---------- Post added 22-08-2018 at 11:29 ----------

 

Call it a debt or call it a tax, it operates in much the same way, it's written off at 55 unlike most debts and there's a minimum earning threshold below which you won't repay anything unlike other debts.

 

They don't run out of working life, it gets written off.

 

You are correct that many students at university now will simply never pay off the student loan and it will be written off.

(The specifics vary depending on when the loan was taken)

https://blog.moneysavingexpert.com/2017/05/will-student-loan-written-off/

 

It's still a debt that's deducted automatically. Unless self employed or on low wage can't escape paying.

[Anna B 1,414]

Why are living expenses always lumped into the cost of higher education?

 

Do you live for free if you're young and not at uni? Of course not.

 

No, if you're not at Uni you work and earn money to pay your living costs.

 

Students do not earn money. They are living on tick/debt for 3 or 4 years, and boy does it mount up.

 

---------- Post added 22-08-2018 at 13:05 ----------

 

To put it bluntly, those students being put off do not deserve to go to university if they do not fully understand the financial implications. It really is not much of a burden at all as I have previously explained.

 

Also, the US university tuition fees are far higher than ours.

 

A very arrogant comment.

 

Posts 102 onwards prove that in reality it's not nearly as simple as you seem to think, and change continuously.

[Obelix 11]

I simply would not have a degree from my background, if I had to pay today's fees. I was lucky enough to study when a University education was 'free' to all.

 

It's telling that Universities are now struggling to fill courses, as youngsters are put off going by the cost of £9,000 a year

 

And, while we're at it, why are our University fees the highest in the world?

 

https://www.independent.co.uk/news/education/education-news/thousands-put-off-by-university-tuition-fees-8025990.html

http://www.dailymail.co.uk/news/article-2718542/Universities-struggle-courses-Falling-A-Level-grades-shift-away-traditional-exams-mean-thousands-places-not-filled.html

https://www.telegraph.co.uk/education/educationnews/11801902/Clearing-Top-British-universities-dropping-grades-as-they-struggle-to-fill-places.html

 

They are not the highest in the world at all. Degrees in the USA and Australia for example can be way more than that as a simple search will show you...

 

Fees are not necessarily stopping people applying for the simple reason that they dont act as a loan in terms of credit reference, they cannot be used to bankrupt you and there is hence no risk to holding such a loan. It simply acts as a garduate tax thats all

[Cyclone 10]

Average wage in Sheffield is £18k.

 

Irrelevant really, we're talking about a career average for a graduate.

 

Also,

According to its study of official earnings data, mean gross annual pay for Sheffield workers has dropped from £24,075 in 2008 to £22,239 in 2014.

https://www.thestar.co.uk/news/average-wages-in-sheffield-drop-by-almost-2-000-since-2008-1-7036508

 

---------- Post added 22-08-2018 at 13:51 ----------

 

£23k according to this

https://www.totaljobs.com/salary-checker/average-english-salary-sheffield-south-yorkshire

[truman 10]

No, if you're not at Uni you work and earn money to pay your living costs.

 

Students do not earn money. They are living on tick/debt for 3 or 4 years, and boy does it mount up.

 

.

 

My kids worked and earned money while they were at uni.....both got good degrees and are working in the field in which they studied.. (both BSc's one got a first and the other a 2:1)

[gomgeg 10]

No, if you're not at Uni you work and earn money to pay your living costs.

 

Students do not earn money. They are living on tick/debt for 3 or 4 years, and boy does it mount up.

 

---------- Post added 22-08-2018 at 13:05 ----------

 

 

A very arrogant comment.

 

Posts 102 onwards prove that in reality it's not nearly as simple as you seem to think, and change continuously.

I was going to argue with you Anna but I'm beginning to think you might be correct about some things about university's.

I've just been reading on the BBC about some overpaid academic with too much time on their hands at Leicester university saying female and male staff should be encouraged to say the word 'menapause' at least three times a day to normalise it's use.

I'm just glad that none of my grandkids went there if that's the standard of teaching staff.

Mind you most of the posts on SF during normal working hours come from the left wing losers who claim to work with students one way or another, another case of too much time on their hands.

[Cyclone 10]

You almost made it through a post without being insulting, but then you failed and insulted about half of the people who use the forum.

 

---------- Post added 23-08-2018 at 08:52 ----------

 

My kids worked and earned money while they were at uni.....both got good degrees and are working in the field in which they studied.. (both BSc's one got a first and the other a 2:1)

 

Fairly sure that they didn't work full time and that the pay for that work didn't cover the cost of being at university though, right?

[alchresearch 214]

No, if you're not at Uni you work and earn money to pay your living costs.

 

Students do not earn money. They are living on tick/debt for 3 or 4 years, and boy does it mount up.

 

I worked while I was at uni. As do many others.

 

There's also the option of living rent free with parents and studying at a university close to the family home.