Most graduates will never pay off their student loans

[rangerrebew]

Most graduates will never pay off their student loans
July 7, 2017 by Andrew Gunn, The Conversation
 

New finding show that more than 70% of students who left university last year are never expected to finish repaying their loans. The report by the Institute for Fiscal Studies (IFS) shows that many of these graduates – the first cohort to pay the higher £9,000 fees – will be making repayments for 30 years. This means that a large number of graduates will be paying back their loans well into their 50s – and a growing proportion of the money lent out will never be repaid.

This is because, under the current system in England, when graduates earn over £21,000 they start making repayments of 9% of their salary above that threshold. And if the loan isn't repaid within 30 years, the outstanding balance is written off.


Read more at: https://phys.org/news/2017-07-student-loans.html#jCp

[Fishrrman]

"This is because, under the current system in England, when graduates earn over £21,000 they start making repayments of 9% of their salary above that threshold. And if the loan isn't repaid within 30 years, the outstanding balance is written off."

Hey, why don't we start this policy for home mortgages, too?

Skip your payments, and after 30 years, you own it...

[Wingnut]

Word of advice to millennials.   Don't default on your Gov Loans if you ever need another loan.

[Mom MD]

My daughter who is a millennial will owe about 240,000 in student loans after she graduates.  That is after we got her through undergrad in a top notch private university without loans.  She will have another 3-7 years of training after graduation during which time she will make a little over minimum wage.  When she finishes training she will finally make a good income - and have all the liberals telling her she is not paying her fair share and she didn't earn that.  Fortunately she is smart and self confident enough that she will make it and pay back every penny she borrowed.  Not all millenials are hopeless.