The student loan system needs reform 100% but as does the wider education and entry level employment system. We need to find a way to incentivise business to help pay down their graduate’s debts in the case of private sector and in the case of public servants, we should reward years of service by paying down their debt. The government can encourage businesses to do this via tax relief on things such as employer NICs - this feels like the right thing to do given we’re in a period of rising youth unemployment and advancements in AI. We also need to provide a diversity of options outside of university and move away from the idea that university is the “best” option and all other options are secondary. Many people in trades should have great technical skills but still can be taught the art of business and entrepreneurship. That doesn’t require a degree but still needs engagement of some form with the knowledge economy. There has to be some form of original thought in our political classes to get a new deal for the younger generations and get this country moving forward.
You’ve raised some really interesting points here, I definitely agree that the conversation shouldn’t just be about student loans in isolation - it’s about how education, employment and opportunity all contribute.
I also think you’re spot on that we need to keep expanding the pathways outside of university. One route shouldn’t be seen as better option, it's just different.
I feel really mis-sold over my student loan. I was the first year of the nine grand fees and it was never explained properly - never did they present it as “you’ll pay an additional 9% tax rate until you’re 52”. Then they changed the terms several times so more and more income is dragged into tax bands so what we have now bears no resemblance to what we were told in 2011. I’m angry but also feel powerless about the whole thing. I also don’t think we were given a “choice” over uni, certainly then when we didn’t have apprenticeships in the way we do now, we were ENCOURAGED to go to uni, it was the “right” thing to do, and now we’re stuck with this financial burden which seems designed to stop you paying it off
I think so many people on plan 2 feel the same way, it was always pushed as "if you don't attend uni, you won't get a good job" which as we know now, is just not the case.
As you said, the system you signed up to isn’t really the system that exists now.
Student Loans most definitely need a reform. I started paying mine off nearly 10 years ago, and currently pay circa £400 contribution per month and I am still thousands of pounds away from clearing it. It is grossly unfair that it is a percentage taken through PAYE particularly when receiving bonuses as it takes a large proportion of it. People do not work so hard for a bonus for it then to be used to pay interest for their Student Loan.
In hind sight, I would probably make the decision to not attend university to avoid being so financially penalized by the loan taken.
Completely agree with all of your frustration. The PAYE element means it's sold as being invisible, but when it comes to bonuses or pay rises the impact is huge.
I think we need to be much clearer with young people about what the financial reality of student loans actually looks like.
The student loan system needs reform 100% but as does the wider education and entry level employment system. We need to find a way to incentivise business to help pay down their graduate’s debts in the case of private sector and in the case of public servants, we should reward years of service by paying down their debt. The government can encourage businesses to do this via tax relief on things such as employer NICs - this feels like the right thing to do given we’re in a period of rising youth unemployment and advancements in AI. We also need to provide a diversity of options outside of university and move away from the idea that university is the “best” option and all other options are secondary. Many people in trades should have great technical skills but still can be taught the art of business and entrepreneurship. That doesn’t require a degree but still needs engagement of some form with the knowledge economy. There has to be some form of original thought in our political classes to get a new deal for the younger generations and get this country moving forward.
You’ve raised some really interesting points here, I definitely agree that the conversation shouldn’t just be about student loans in isolation - it’s about how education, employment and opportunity all contribute.
I also think you’re spot on that we need to keep expanding the pathways outside of university. One route shouldn’t be seen as better option, it's just different.
I feel really mis-sold over my student loan. I was the first year of the nine grand fees and it was never explained properly - never did they present it as “you’ll pay an additional 9% tax rate until you’re 52”. Then they changed the terms several times so more and more income is dragged into tax bands so what we have now bears no resemblance to what we were told in 2011. I’m angry but also feel powerless about the whole thing. I also don’t think we were given a “choice” over uni, certainly then when we didn’t have apprenticeships in the way we do now, we were ENCOURAGED to go to uni, it was the “right” thing to do, and now we’re stuck with this financial burden which seems designed to stop you paying it off
I think so many people on plan 2 feel the same way, it was always pushed as "if you don't attend uni, you won't get a good job" which as we know now, is just not the case.
As you said, the system you signed up to isn’t really the system that exists now.
Student Loans most definitely need a reform. I started paying mine off nearly 10 years ago, and currently pay circa £400 contribution per month and I am still thousands of pounds away from clearing it. It is grossly unfair that it is a percentage taken through PAYE particularly when receiving bonuses as it takes a large proportion of it. People do not work so hard for a bonus for it then to be used to pay interest for their Student Loan.
In hind sight, I would probably make the decision to not attend university to avoid being so financially penalized by the loan taken.
Completely agree with all of your frustration. The PAYE element means it's sold as being invisible, but when it comes to bonuses or pay rises the impact is huge.
I think we need to be much clearer with young people about what the financial reality of student loans actually looks like.
1000% needs reform.
Agreed!