Best way to pay off student loans?

[OwlHoot]

I'm inclined to agree. I don't think it's right to push everyone to university, it's not the right environment for everyone and i can't help but think that it's a ruse to massage unemployment figures.

It was one of Tony Blair's bright ideas, partly for the reason you mention but also to bring the UK into line with other EU countries such as Germany, but forgetting that German undergrads probably mostly study engineering and other useful subjects.

[SueEllen]

It was one of Tony Blair's bright ideas, partly for the reason you mention but also to bring the UK into line with other EU countries such as Germany, but forgetting that German undergrads probably mostly study engineering and other useful subjects.

Blair said "higher education" not "degrees".

However he "forgot" that most jobs don't have professional bodies like accountants have to give them degree equivalent qualifications.

[edison]

I would love to see student loans replaced with a graduate tax.

A £50k debt is a huge burden for many people - especially those entering poorly paid yet essential jobs such as social work yet a mere inconvenience for those entering highly paid professions.

Meanwhile those with wealthy parents enter the workplace and housing market debt free.

Martin Lewis of Moneysavingexpert.com used to regularly say in the media that student loans were really a tax, not a loan. With the recent increase in the maximum loan period of 40 years, he's dubbed it a 'lifelong graduate tax.'

Ironically, students from more affluent backgrounds who get into better paid jobs will more likely be able to pay it off quicker whilst some poorer students will be paying interest till they practically retire.

[edison]

Universities don't care, they are just after the money. Look at all the paid overseas places and these micky mouse degrees they offer etc. I don't think the ratio of grads to jobs is that much of an issue as many go on to do other things not related to their degrees anyway. It can be used as evidence you are at an academic level rather than the content of the course.

I do think these micky mouse degrees are a complete con though. The really niche ones like in comics and DJ'ing and the like. There is going to be even less jobs in those areas and people aren't really going to take it seriously if you want to get a job in a different area. Paying back a student loan with a micky mouse degree isn't going to be easy.

All that said my lad is at uni and his attitude is they will never have to pay them off so they aren't bothered. We've tried talking him through the numbers and reality of the situation but his peer group at uni has a very different general attitude to it. I know not all students think like that but there are large groups that do. Like many other things, when they hit the real world it's going to sink in but far too late.

My wife works as a careers advisor with young people aged 13-19. It's surprising how little many students and their parents seem to know about the realities of going to university and their realistic earnings potential after graduation.

I don't think you can get a degree in DJing, maybe you are referring to Music Production? This is a popular area of interest for less academic kids. The UK music industry is the biggest in the world after the USA, so whilst in theory it might be useful, the reality is becoming a successful DJ or working in production is often about contacts and networking rather than what you learnt in any classroom.

I think you're right about your son's peers and attitude to debt. Where I live in a smallish market town, even the cheapest two bed flat within a few miles is near £200k, typically it's £300-350k. Many young couples will be nearer to 40 before they can afford to buy a flat. Loans and debts are just abstract numbers to many.

[edison]

I have a feeling the apprentice scheme got a bit of a kicking this tax year, after being quite attractive to employers the last year or two. We were looking quite seriously at it but unless the schemes vary between industries, the numbers don't seem to add up last time we checked.

When I looked into it on behalf of one of my clients recently, you could get up to £25k funding for a level 6 degree apprenticeship. I think the funding does vary by subject but not looked at it closely as was only interested in IT related schemes.

[TheDude]

Martin Lewis of Moneysavingexpert.com used to regularly say in the media that student loans were really a tax, not a loan. With the recent increase in the maximum loan period of 40 years, he's dubbed it a 'lifelong graduate tax.'

Ironically, students from more affluent backgrounds who get into better paid jobs will more likely be able to pay it off quicker whilst some poorer students will be paying interest till they practically retire.

It's not really a tax because those with wealthy parents get to dodge it.

Then again the rich already dodge many taxes so what do I know?

[Whorty]

Martin Lewis of Moneysavingexpert.com used to regularly say in the media that student loans were really a tax, not a loan. With the recent increase in the maximum loan period of 40 years, he's dubbed it a 'lifelong graduate tax.'

Ironically, students from more affluent backgrounds who get into better paid jobs will more likely be able to pay it off quicker whilst some poorer students will be paying interest till they practically retire.

I still don't get why we don't just create a 'graduate tax' .. for all graduates including us on here ... so anyone who has gone through the Uni system in UK pays an extra x% on their earnings until retirement/67. So no one has a debt hanging over them, but we all pay our fair share.

Surely that's a fairer way to do it than sting current students so badly?

[vetran]

I still don't get why we don't just create a 'graduate tax' .. for all graduates including us on here ... so anyone who has gone through the Uni system in UK pays an extra x% on their earnings until retirement/67. So no one has a debt hanging over them, but we all pay our fair share.

Surely that's a fairer way to do it than sting current students so badly?

because they would all go abroad?

[d000hg]

I still don't get why we don't just create a 'graduate tax' .. for all graduates including us on here ... so anyone who has gone through the Uni system in UK pays an extra x% on their earnings until retirement/67. So no one has a debt hanging over them, but we all pay our fair share.

Surely that's a fairer way to do it than sting current students so badly?

How's it fairer than paying back what you borrowed?

[SueEllen]

I still don't get why we don't just create a 'graduate tax' .. for all graduates including us on here ... so anyone who has gone through the Uni system in UK pays an extra x% on their earnings until retirement/67. So no one has a debt hanging over them, but we all pay our fair share.

Surely that's a fairer way to do it than sting current students so badly?

I had student loans which I paid off, so why would it be fair that I pay a graduate tax.

(Granted they were under one of the older schemes so I am not in debt for the rest of my working life.)