Comments on: Student loans cost increase http://deansas.org/blog/2009/05/20/student-loans-cost-increase/ Tappity tap tap Tue, 12 Apr 2011 14:53:10 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Dean http://deansas.org/blog/2009/05/20/student-loans-cost-increase/comment-page-1/#comment-39140 Dean Thu, 16 Dec 2010 19:29:01 +0000 http://www.deansas.org/blog/?p=599#comment-39140 Education is still subsidised by the government and still will be once the new changes come into play. Education is still subsidised by the government and still will be once the new changes come into play.

]]> By: Driving http://deansas.org/blog/2009/05/20/student-loans-cost-increase/comment-page-1/#comment-39139 Driving Thu, 16 Dec 2010 18:15:30 +0000 http://www.deansas.org/blog/?p=599#comment-39139 The Goverment just think that they gonna make money from Universities, but in 10 years time no one is going to go to uni anymore. Thy only do what they do with all the manufacturing in UK , big taxes , and they all left UK The Goverment just think that they gonna make money from Universities, but in 10 years time no one is going to go to uni anymore. Thy only do what they do with all the manufacturing in UK , big taxes , and they all left UK

]]> By: Andy http://deansas.org/blog/2009/05/20/student-loans-cost-increase/comment-page-1/#comment-38788 Andy Fri, 22 May 2009 14:25:11 +0000 http://www.deansas.org/blog/?p=599#comment-38788 Effectively what the Govt. is doing is putting a lower cap on the rate, however there is no upper cap. When interest is high Students had to accept that rate, now the rates are low (negative in fact) the government overrides the normal calculation method to be more beneficial to it self. Worse still the Govt. is responsible for causing this deflation in the first place!!! Effectively what the Govt. is doing is putting a lower cap on the rate, however there is no upper cap. When interest is high Students had to accept that rate, now the rates are low (negative in fact) the government overrides the normal calculation method to be more beneficial to it self. Worse still the Govt. is responsible for causing this deflation in the first place!!!

]]> By: Dean http://deansas.org/blog/2009/05/20/student-loans-cost-increase/comment-page-1/#comment-38787 Dean Thu, 21 May 2009 22:22:47 +0000 http://www.deansas.org/blog/?p=599#comment-38787 <p>Sort of. It's a bit weird to get your head around, and perhaps I haven't explained it very well.</p> I'm suggesting that the effective (not the actual) interest rate ought to remain at 0%. The idea behind student loans is that the amount you pay back is the same as the amount you borrow taking into account inflation. Perhaps an example is in order: You borrowed £5 from a friend to buy 2.5 pints in 2005. It's now time to pay him back, £5 will now buy two pints, do you owe him 2.5 pints or £5? In the case of student loans you owe him 2.5 pints. So you're paying back the real value of what was borrowed. The current case is that you borrowed £5 to buy 2.5 pints. It's now time to pay it back, £5 will now buy three pints. Do you owe your friend 2.5 pints or £5? Following on from the rules above you should give your friend 2.5 pints. The government says you owe £5. Sort of. It’s a bit weird to get your head around, and perhaps I haven’t explained it very well.

I’m suggesting that the effective (not the actual) interest rate ought to remain at 0%. The idea behind student loans is that the amount you pay back is the same as the amount you borrow taking into account inflation.

Perhaps an example is in order:

You borrowed £5 from a friend to buy 2.5 pints in 2005. It’s now time to pay him back, £5 will now buy two pints, do you owe him 2.5 pints or £5? In the case of student loans you owe him 2.5 pints. So you’re paying back the real value of what was borrowed.

The current case is that you borrowed £5 to buy 2.5 pints. It’s now time to pay it back, £5 will now buy three pints. Do you owe your friend 2.5 pints or £5? Following on from the rules above you should give your friend 2.5 pints. The government says you owe £5.

]]> By: Anonymous http://deansas.org/blog/2009/05/20/student-loans-cost-increase/comment-page-1/#comment-38786 Anonymous Thu, 21 May 2009 21:57:26 +0000 http://www.deansas.org/blog/?p=599#comment-38786 Are you trying to suggest that the government should be paying us to borrow money? If I misunderstood, I apologise. Are you trying to suggest that the government should be paying us to borrow money?

If I misunderstood, I apologise.

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