But the salary threshold has been lowered to £25,000 for those who started their degrees last year. The repayment period has also been extended to 40 years.
According to research by London Economics carried out for the Nuffield Foundation, these reforms have increased the costs for lower and middle-income graduates while at the same time lowering the total repayments for those in higher-earning jobs, who will be able to pay off the debt sooner.
As women are more likely to have lower wages due to career breaks, they will pay on average £10,000 extra during their lifetime while men will pay £7,500 less than graduates on Plan 2, the research found.
We want those who do not get the salary uplift from having a university education to pay more for their university education. So as to dissuade them from consuming valuable resources in gaining a university education that’s not worth having.
Blokes doing arts, birds doing grievance studies, the entire aim is to stop them doing so.
“lowering the total repayments for those in higher-earning jobs, who will be able to pay off the debt sooner.”
Bit of sophistry there. People earn more so they pay more so they pay off their debt earlier and so incur less interest. This is seen as a bad thing.
Flip side of course is that someone taking a part time ‘lifestyle’ job in ‘fluffy social stuff’ might never pay a penny off their debt.
«Blokes doing arts, birds doing grievance studies, the entire aim is to stop them doing so.»
Tuesday is STEM day – go for it, chaps.
It is a damning indication of the generational lack of numeracy – in would-be graduate students FFS.
One assumes they would rightly balk at a 9% fixed rate term mortgage but are unable to connect the dots when entering into a similar financial commitment because it’s Uni innit.
As with any loan decision in life, it is important to consider the value of the thing the money is being borrowed for against the cost of the loan. I presume students studying courses that lead to low paying jobs have carefully weighed up the pros and cons, and decided to go ahead having decided that the degree was worth the money to be repaid.
Tom Allingham, of Save the Student, said: “The suggestion that female graduates will bear the brunt of this, while the average male graduate is better off, underlines just how regressive these changes really are.”
Do you ever wonder about these people and their extremely gay priorities?
You or I may be troubled by the fact that our foreign owned puppet government is trying to make all forms of economic activity illegal or unaffordable, while simultaneously replacing the British people with acid throwing monsters and paedophile rapists, while simultaneously trying to inflame wars across Eastern Europe and Southwest Asia.
But Tom’s worried about women having to pay back loans they took out. They say it takes all sorts, but they’re wrong.
I presume students studying courses that lead to low paying jobs have carefully weighed up the pros and cons, and decided to go ahead having decided that the degree was worth the money to be repaid.
It’s far easier to understand if you use the time/value of money discount calculation. The future cost of the repayments discount to virtually zero compared with 3 years swanning around at uni & the social cachet involved in that & the prospect of being able to claim to have a degree, in the present.
People who send their daughters to university: what are they expecting to get out of that?
It’s probably not gonna be grandchildren, is it?
@DocBud
“I presume students studying courses that lead to low paying jobs have carefully weighed up the pros and cons, and decided to go ahead having decided that the degree was worth the money to be repaid.”
We have had student loans repayments for sometime now and why the data is not published to let people know how useful on average degrees from different unis are is a mystery to me.
For example if I lived next to Cardiff Uni and my child could either study geography there or pay rent at Oxford – would the extra cost be worth it in extra earnings?
AFAIK it impossible to find out – but the data should be in the repayments.
And should be fairly easy for someone who knows SQL to find out – I could if I had access .
Be careful selecting your degree kids, that’s the message I take away from this. I was and my son and daughter have both been careful with their selections. They’re both doing engineering. They’ll be fine.
They’re both doing engineering. They’ll be fine. (Peace be upon them)
There is a massive global shortage of engineers, especially in industries that might have the temerity to ask you to work away from a major city. In Oz, starting salaries in resources are about A$100k and you should be earning A$200k in 4-5 years. Lifestyle rosters are very common, i.e. 7 on 7 off with company paid fly in fly out from a capital city.
«…3 years swanning around at uni & the social cachet involved in that & the prospect of being able to claim to have a degree…»
BiS, you’ve been away too long if you believe that! With 50% of school leavers going to “uni” the cachet is spread very, very thinly.
TBH – care in choosing your degree is important as is your choice of institution: the higher the threshold for admission the greater the value of the degree, stem or unstemmed alike.
Teachers in Oz earn plus A$100k, after a couple of years, in an independent school. Would not recommend state schools unless you’re into verbal and physical abuse. My daughter stomached it for two years before switching to an Anglican school where the children want to learn. We’ve also got a son teaching English in Hong Kong. I don’t know what he earns but suddenly money is no object, flights to the UK, Oz and various holiday destinations every year.
Our other two kids are an engineer and a speech pathologist. MrsBud studied Social Work as a mature student in Oz, she paid off her student loan in two years due to the distribution of my income through the family trust. She’s on about A$130k.
David
Try this.
https://www.telegraph.co.uk/money/jobs/schools-universities/which-university-degree-earn-highest-salary/
BiS, you’ve been away too long if you believe that! With 50% of school leavers going to “uni” the cachet is spread very, very thinly.
Just spreads the cachet attraction wider. You must have noticed that possession of a degree has become widely thought of as the “default”. Hence the “deplorables”. Or “white man van”. Or Tory Party policy. However the education doesn’t seem to have done much good. It doesn’t penetrate that for some time the guaranteed way of being happily rolling in wonga is resisting the enticement of uni & learning a trade. For most, being educated means risking being poor.
BiS – the girl who rings up your shopping (assuming you avoided the electronic self serve fuckery) has a degree from Scumbag University, and so do all her mates.
Young people don’t go to Yooni to learn, and the social value of the average degree is probably ~ zero now. They go because they don’t know what they’re doing and neither do their parents. They know they should do something with their lives, Yooni is something, so they do that.
It’s a life script that people are still reading off, despite it being 40 years out of date and no longer relevant to the socioeconomic conditions of 2024.
The older life script, which said leave school, learn a trade, get married and produce sprogs in your 20’s, was more appropriate to today’s world but early marriage and family formation have been deprecated in our society as an indicator you belong to the despised prole class.
Nobody wants to be a prole, especially female proles. So they study basket weaving at an eye-watering markup in one of our many pretend seats of knowledge instead. And then typically spend many years wondering why, since they’re “educated ‘, the pay is so shit.
Nobody’s benefiting from this scam except Scumbag University, which just opened a massive new student village to house all the foreigners they’re selling British visas to.
BiS,
Scumbag Uni should be on the hook for the loan book. No return on investment for students should mean financial hardship for Scumbag. As it stands these bastards are on a one-way bet, so lower the standards, pile ’em up, give ’em a piece of bog roll and send ’em off to Maccy D’s….trebles all round.
While I’m at it, STEM courses should have the fees paid by the state. Let the kids take a loan to support themselves by all means, but anything to eliminate DEI-ridden humanities gets my vote. The more I see of academics the more sympathy I have with Pol Pot…
the social value of the average degree is probably ~ zero now.
Oh come on Steve! It obviously isn’t. They have the attitude “I may be out of work & penniless but I have a degree!” There ‘s people comment on here about not being able to find the work they think their education entitles them to. Doesn’t seem to occur to them “Then learn something else” I suspect they don’t because that would put them with the something elsers. A lesser being.
How often do read an article by some bint whining how bad life treats her? You can’t get past the first paragraph without her mentioning having gone to uni. It’s something I’ve noticed. There’s an inverse relationship between how quickly or often people mention higher education to how well they’ve done. But it does distinguish them from all the other people in the same situation who haven’t had it.
BiS – Oh come on Steve! It obviously isn’t. They have the attitude “I may be out of work & penniless but I have a degree!”
Yes, but that’s people complaining that society does not, in fact, value the 3 years they spent getting pumped by the first XV.
Doesn’t seem to occur to them “Then learn something else” I suspect they don’t because that would put them with the something elsers. A lesser being.
There’s more than a hint of the “temporarily embarrassed millionaire” about it. There is a (vague, mostly unspoken) belief that Yooni = (upward) class mobility, but of course 50% of school leavers aren’t going to ascend the social ladder.
They never were.
Student loans are highly effective contraceptives. A couple with negative net wealth of 90K are not going to be making babies any time soon. Then later, it may be too late.
So then we need to import highly educated non graduates from Senegal and all points East.
I’ve passed this on to people who have both the potential budget and also the ability to make it happen – if the data exists. They’re chewing it over and are v interested in the idea so far. This could be something that happens
«I’ve passed this on to people who have both the potential budget and also the ability to make it happen – if the data exists. They’re chewing it over and are v interested in the idea so far. This could be something that happens»
Tantalising but obscure…
TMB,
My guess: in response to David at 11:30am
BiND – thanks. I think you must be right.
@Jimmers
Thank you but I think there should be more detailed and so useful data avaliable.
@Tim Worstall
They must know who they lend to to study what – therefore the data exists.
If I had access to the student loan company I could get useful data with 2-5 days (depending on the structure of the database).
I would do for a very reasonable amount