meltonblue
Well-Known Member
- Joined
- 14 May 2013
- Messages
- 6,528
Apologies, my mistake. I had always thought student debt was repaid before tax (it’s calculated on pre tax but taken after tax) - hence if you paid their debt you’d be paying more as you’re paying + whatever your tax rate is. That’s very wrong IMHO and should be changed. Why? Because when it’s taken after tax it ends up being an increased tax rate so you have two people earning the same who pay different rates of tax based on their education path. As a principle tax should always be fair.
Overall the student debt is getting out of control and going to get worse. You can see why the government have no interest in saving universities with cash injections and why Sunak wanted to make sure students were on “worthwhile” courses - not for the interests of the students but this mountain of debt that exists and won’t ever be paid off in full and is getting much larger. When you consider a large chunk of the maintenance loan goes to private landlords (and often needs topping up by parents) the government needs to somehow get across rents in this sector. My second daughter just qualified as a midwife and she says her debt is about £76k… how is a midwife ever paying that off when they chuck the interest on top. I appreciate she has particular circumstances that meant her debt is likely higher than usual but it’s bonkers numbers. Will be a similar story for teachers and other public sector workers even if the numbers are a “mere” £40-50k + interest.
I wouldn’t personally pay the government back under any circumstances, this a beast of their own making, I’d rather put the £76k in to an appreciating asset such as a house for them if it was laying around spare.
Like I said in a different post, I’m making the decision year on year, we have a plan for after uni depending what he decides to do and whatever life happens to throw :)
Completely agree with your sentiment there.