Thursday, 28 April 2016

Hooray For The Student Loan!

 
 
Today's blog starts with a bit of a rant!
It's not often I get bothered by things I read or hear in the media....but this morning the BBC really made me MAD!!
They announced that UK students are worse off by the end of their studying than their English speaking counterparts in countries such as the US.
As we have just come back from the US and heard first hand what our friends are going through I beg to differ!
They are looking at a uni that is going to cost $64000....I cant remember if that is per year or for the entire course...but its almost irrelevant to my argument.
This money has to be paid whilst the student is at Uni....many students have to work their way through to make the payments and the fortunate few have parents or grandparents who can pay for them.
When we told them how our system worked they were amazed!
Here is how it works...in a nutshell...here in the UK
Tuition fees £9000pa
Maintenance loan...varies but average £5000 (not needed for those staying home)
After graduation and earning money, all earnings under £21,000 are free of loan repayments.
Earnings over £21,000 pay 9% (first £21,000 still free of loan repayment)
Eg: earn £25000 pa
Monthly income after tax and NI £1662
Loan repayment £30.
 
Who can say that is not affordable?
And the best bit...any amount owed after 30years is written off.
Any time you stop earning or your salary drops to under £21,000, the repayments stop.
The loan does not appear on credit references and Mortgage advisors say it will not affect your ability to get a mortgage.
It is not classed as a debt...it is a loan.
 
We heard today that Teen One's student loan has gone through ok...which is a relief...means I completed the forms correctly!
Our Teen's ability to receive a University education does not depend in any shape or form on our income ( or lack of!) and the repayments she will pay back when she starts to earn are more than affordable.
This will not be the experience of our US friends, who are already worrying about where the money is going to come from and how will any loan be repaid.
Once again...as much as I love the US...I love the UK more!
 I have emailed the BBC and asked how they can evidence this story.
Rant over!

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