On Mon, 24 Jul 2017 17:25:07 -0700 (PDT), 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.

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.

--
Cheers
Dave.