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Except you don't get to write off a mortgage after 30 years. Have you actually tried the calculator?
Not necessarily the case based on that calculator - an investment banker starting on £38250 pays back more than a civil engineer starting on £24500
And a marketing person starting on £26,000 pays back £55k - more than the investment banker.
I didn't write the tool but there seems something odd about the civil engineer calculation.
I don't know enough about the income profiles of the different careers - I looked at their examples of high and medium earners as a comparison.
Have you actually tried the calculator?
Have You?
Civil Engineer Starting Salary 24,500
Loan at start of repayments £40,136
Total repayments £56,065
Repayment term 23 years, 11 months
Investment Banker Starting Salary 37,500
Loan at start of repayments £40,136
Total repayments £49,353
Repayment term 12 years, 5 months
What am I missing?
Defund all the neo-marxist / postmodern humanities before we have conversations about scrapping fees . The ideological homogeneity of such institutions has reached it's zenith - Thus communists like JC want to mobilise the long march through proliferation of 'free' higher education.
[quote=richmtb ]What am I missing?
I'm not quite sure, because:
Civil Engineer Starting Salary 24,500
Loan at start of repayments £40,136
Total repayments £45,640
Repayment term 30 years
Initial loan repaid 85%
[quote=slackboy ]I didn't write the tool but there seems something odd about the civil engineer calculation.
It's assuming much less wage inflation for the engineers from what seems a decent starting salary. From personal experience that's quite close to realism.
richmtb - MemberThe student "loans" system is an utter farce. Its just a way of kicking the financial can down the road. Less than half of student loans will be repaid. the shortfall will have to be made up by the taxpayer, as will the cost of administering such a complex system in the first place.
Exactly this. It's subprime for students. The IFS has predicted that the lifetime cost of the new (£9000/3% over RPI) is actually going to prove more expensive than the previous system. It's just a way of hiding public borrowing and of course selling bits of the loan book off to the private sector.
At the same time we have acute shortages in science and technology - we need 70,000 a year for 10+ years to simply keep pace with people retiring.
And the fees have made this worse, as STEM courses tend to need more expensive equipment, labs etc, so the fees were maximised. (but are they all maximised these days?)
The discussion about total paybacks is flawed as there's no consideration of inflation and discounted costs. Yes, people on a lower salary pay more in actual pounds, but in real terms the later payments are lower.
slackboy - MemberNope, observation was based on the new system.
now change your calculations to use the numbers from the old system...
Using children who know no better - tick
Promising free everything for everyone - tick
Lying - tick
Just another day at the office for Labour