Luckily for me I was given giod advice from an accountant at age of 17 n told to not go uni but rather go to Kaplan and get a job in finance. It was hard work but it meant my employer paid for my Chartered qualification and I have zero debt ;) Also, education system teaches you to get his grades and become a good employee. It does not teach you how to manage money and become an entrepreneur.
I agree that students have been horribly misled and misadvised into unaffordable borrowing to pay for degrees that are often worthless (at least in terms of employment prospects). However, you should be clear that your video describes the situation of tuition fees and loans in England, not in the UK as a whole.
@julien, I think you missed the point of the video. The problem is that degrees are taxpayer funded, whether that is planned or due to student debt default. That will add to the burden of the less mobile squeezed middle class, who cannot pick up with their wealth and move to a tax haven.
Yeah it is I think all what will happen is I won't pay it back and it will get wiped. Absolute stupidity should be a garunteed job like if you do an apprenticeship at end of course.
They work for the finance companies the Tories sell that student debt to at undercut rates. It is way above market interest debt that is secured by the government, so why wouldn't nasty finance companies want it. And it can be yours with just a bit of help from your local Tory and a small donation to their fetid little organisation they call a party.
my loan was 63k when i left uni 3 years ago its now up to 67k ill never pay it off and im working full time as a doctor. i have no incentive to pay it back since im only paying interest. ill actively avoid paying any more than i have to until its written off. i feel like i was lied to about student loans.
Well if a doctor cant pay it off - who can? Im guessing its going to be the people you keep well enough to work... just saying, it seems unscrupulous to go down the route of an admirable and even honorable profession and shit on our doorsteps At least you were candid - as am l.
@@bicyclemanNL i came from a poor background so i dont mince my words. i became a doctor to help people and yes i suppose now i do live marginally better off than my parents but i work my ass off. i miss birthdays, weddings, christmas, you name it and the government still shits all over doctors and makes us the enemy. i have an unpayable debt and although i live my country and my people and i dont want them to be burdened with debt thrust upon me, i am however providing a public service at a relatively specialist area and yet i will forever be in debt to my student loans (well for 30 years atleast). no doubt there are who others work just as hard if not harder than i do. but i hate that despite my years of education and willingness to help others im saddled with this debt and not even appreciated for what i do. i used to encourage others to be doctors as its a great feeling to help others but the world we live in now i actively discourage anyone i know from doing it. if your going to be shat on all the time you may as well be shat on and not in debt to the people who shit on you.
And this is exactly why people aren't able to pay it back, people feel they have no incentive to pay it off And that's probably also why the rates are so high
I remember all the people that complained when students protested this in 2012, all the newspaper headlines and pub talk about ungrateful students who clearly weren't as intelligent as 'adults'. The kind of adults who always know better until they don't. Students knew this then and we know it now. It's a ridiculous system doomed to fail, and when it does it'll bring quite a few universities down with it. All done for political reasons to the detriment of future generations. This video also forgot to mention the Student Loans company has been fully sold off and privatised so now any profit doesn't go to the government but all debt is underwritten by the government. This is probably one of the worst legacies of the Cameron government. Y'know apart from Brexit and cementing a system for our NHS to canabalise itself. But like everything else this generation will fix the horrific mistakes of our parents and grandparents.
What are you talking about, the Student Loans Company is still publically owned and the payback scheme for English Student Loans are more equivalent to a Graduation Tax than any kind of actual loan.
@@AdamDunebugDunas what I don't get is if student loans are more like a tax, then why not just structure and label it as such and make everyone pay the same percentage over the same period of time. That would even solve the dilemma of richer students graduating debt free while poorer ones are forced to take out a loan
@@aminboumerdassi2334 There's no point graduating 'debt-free' unless you have a starting salary high enough that you'll pay the whole thing off. As for poorer students, they usually won't ever pay off their loan or even pay enough for the interest to matter, it's not a big issue. People with middling incomes do end up paying a bit more, but they can opt to pay it off sooner if they really wanted to. But it's important to know it's not a large price to pay, it's a small portion of income over many years that you can never default on.
Since time immemorial, every single generation leaves mistakes for the next generation to fix. Undoubtedly, they'll be the typical fair share of major mistakes made, when you Millenials are in 'power', that'll affect future generations and they'll have the burden of having to try and fix it. The only major difference today, is that past generations just simply took these 'burdens' on the cheek, as part and parcel of the 'hand over' and just went about trying too solve any handed-down problems. While all millenials today seem to do, in typical fashion, is just bitch, moan and blame others, about the situation. Let's face it, if it wasn''t for the 'Boomers', that in the past, fixed issues, which allowed anyone, from any walks of life (not just the rich & privileged), to apply for University, then many people in this comment section, wouldn't have stood a chance in hell, of even getting into University, in the first place.
Dont' worry, think of the repayments as a graduate tax, you'll never pay it off and its fine that way! :) Keep repayments to a minimum and invest your money instead. Check out martin lewis money saving expert on student debt
You have to ask yourself, is this education worth several years of my life and a price tag possibly in the 100,000s. "Could i do something else for a few years that puts me in a better position financially then at -100,000£?"
@@zwalafmalahesh1470 Exactly. You'd be better off getting a trade. Become a joiner, a plumber or a carpet fitter or something like that. Those jobs often pay way more than graduate jobs. 2, maybe 3 years apprenticeship then you can earn decent money with zero student debt. Well worth considering.
Why are they called "Boomers" Previously: they were part of the baby and economic boom Now: they left economic time-bombs for their children and grandchildren
Only in the USA, in Asia and Africa - you know, most of the world - the generation born in the 50s and 60s are the first not to be able to retire! And most of the women would not have been educated.
I know isn't that fantastic. I'm 66 went to the local Tech college. At 16 ? Achieved skills and qualification that were usable and needed. "WORKED" very hard for 48 years. . Own 3 houses unmortgaged. Large private pension and savings. Yes I'm smug and I earned it . Not a mickey mouse degree in daffodil flower arranging or MEDIA STUDIES. watching films and getting pissed.. Hey Snowflakes hard f....ng luck .
As a german i often forget what a huge privilege it is to have a completely state funded education system... not just the money but especially the Grades and Ranking is very interesting Can't wait for your vacation to be over! even if you deserve it
Not truly a privilege when, as demonstrated in this video, in the end the tax payer has to pay. Educating the youth is a socital need. Pretending that students don't need help just lead to create a shity situation we have to deal with in 30 years when their life has been severly crippeled by debt. The generation who made those decision in the 2000's (on education, on climate and on finance) where amond the worst and most self obssessed politics UK has ever known...
@@Minodrec The german higher education is state funded not the English one.... the whole video is about how they're NOT state funded (well atleast to a large part)... on the other hand german universities are completely funded by taxes and you pay NO tuition
Sometimes its good to be a german. If i would be living in UK or US i would have studied abroad. In germany i pay around 120€ per Semester plus lets say 800€ costs of living. That could be cheaper but it depends on the city.
@@LoFiAxolotl I think you read my comment a bit too fast. It's not state founded. But you still have to pay for education with a 6% interest because students are not able to pay their debt. Did you get to that part of the video ?
@@Einheit091 And even if you need financial help in germany as a student you can get a state sponsored Loan (Bafög, also available for foreigners from many countries) which you only have to pay back 50% and it's completely interest free!
@@klobiforpresident2254 I wonder how clear that was back then. I mean, my impression is that management-by-objectives with S.M.A.R.T. objectives is still very much a thing, and has only recently been losing momentum as the obvious answer to everything in the public sector :l
I think this needs a title change from UK student debt to English and Welsh student debt, as the education system is entirely different in Scotland this all only applies in England and Wales (I am unsure about NI perhaps someone from there than clarify the situation in NI).
Exactly. My sis just started Uni in N.I. and her interest rate is 1.75%, plus she was able to get a grant which doesn't have to be repaid. This channel has a habit of framing English issues as U.k. Issues, which is at best ignorant and at worst disingenuous.
@@SolarMechanic Unless I am mistaken the current tax system in the uk as a whole means that Scotish and Northern Irish taxes are paid into the UK coffers and the funding for the reigions is then redistributed according to the barnett formula, so in essence this is a problem for scotland and NI as well becuase even though you have seperate systems for univeristy fees in these regions the tax payers of Scotland and NI are still going to be contributing towards picking up the bill for the English/Welsh tuition fee system
When someone robs a bank’s money its a crime. But when millions are in debt for a piece of paper it’s just plain business for these predatory institutions.
The worst part is that it still hits the government in the end, they are stuck with an artificial debt they made. It's the financial equivalent of shooting yourself repeatedly in the leg.
@@coolpeopleit But the government will be stuck with the debt 30 years from now. Since every politician's planning horizon extends only as far as the next election, NONE of them cares in the slightest bit about 30 years from now.
@@kevinlove4356 The student fees were introduced in 1998 according to the video above, so the first defaults will be in 2028. If the next election falls on jan 1st of 2020 (no idea if it will be tomorrow or in a years time at this rate tbh) then there are 2 terms before it will directly impact them. It's not as far away as you think!
I'm 19 and got good a level grades and i am so glad I am taking a gap year to work and take courses instead of bowing to family pressure of going to university. Uni is a scam now i think.
Apprenticeships are the best way, I earn close to 60k and I've never done a degree. My friend that did a degree through an apprenticeship is on close to 80k now!
@@ChemicalOly I'm 16 do you have any advice on what to do right after college btw I want to do something to do with business and I don't want student debt
You'll be fine buddy, this video is kinda misleading. There isn't a student loan crisis, you only pay 9% of income over £25k, so if you're earning £26k a year, you pay £90 a year towards your loan, if you don't pay it off in 30 years, it's wiped. Also, it doesn't appear on your credit report, so it won't affect your ability to get loans and will only minorly affect your ability to get a mortgage. But, the average graduate has a starting salary of £30k a year, compared to the average UK wage of £28k a year, that's a massive boost. Good luck with your studies and don't be disheartened!
At least you know before you go to university you will be ranking up interest whilst you're studying... I graduated last year and received my total debt letter early this year and to my surprise there was already £6k of interest in top! My other university friends didn't know this either! For me, university was absolutely worth going to despite the cost and added interest, but just make sure that the course you are going to be taking is based on something you're absolutely passionate about and can see yourself doing for the rest of your career! 😊
Tbh, since joining university I believe it’s the biggest waste of time I’ve ever embarked on. If you read this, get an apprenticeship! University should be just for partying and the degree is NOT worth it UNLESS you are in sciences.
Rahma Omar it’s incredibly expensive, very difficult but when it comes to maths, all of it is aha! Honestly, if you want a job in pure maths, university is required, maybe even masters. If you want a job not directly linked to maths, apprenticeship. There’s always diplomas!
@@CazmaRazz You can't get diplomas as a general practitioner, a lawyer, a psychologist, dentistry and many other jobs. If everyone followed your advice, millions of people would have nowhere to look to because there weren't enough of those qualified people.
Kristiana Wilson as I said, sciences and higher education required jobs, go uni. Anything else like humanities - uni is biggest waste of money and time ever.
I think you missed out on a case study here: Scotland has no tuition fees. We get loans to cover living costs over our 4 year courses, but the degree itself is free. We therefore have far less student debt, and aren’t tied into such a disastrous debt cycle as the English.
The only issue with this is having to go to a Scottish University t though. If your a highly gifted student your only real options are Edinburgh and Glasgow, along with certain subjects at Aberdeen, otherwise you are effectively forced to go to a university outside of Scotland due to your ability unless you wish to be taught at, what can be considered by many employers as 'the other universities' (generally not being Russell Group standard). With this, you are then put back right into the same boat as any English student and forced into paying extravagant amounts for tuition and living costs, hours away from family. Again, this is worse for NI students who are highly gifted as the only real option would Queens in Belfast.
WeeScottishLass I hope so. It would certainly be economically worse in the long run, but I could see the government deciding to cut degree funding with post-Brexit austerity :/
In England? I hope you realise that unless you end up making £60k a year, that you won't be paying that off and you won't be losing a noticeable amount of money to it each year. Student Loans are much more reasonable than people realise.
@@AdamDunebugDunas This is true. It's why I didn't feel too bad about getting the loans when I did. Still, knowing that I'll be paying thousands over the years to just pay down the interest of a debt that'll be over me for a good chunk of my life isn't comforting
@@JamesRoyceDawson I think if you want to feel more comfortable about it, think of it as a 30-year tax that's based on your income instead of a loan. If you're earning £26k a year, you're paying £90 a year in 'graduation tax' on your loan. It'd be nice if a lot more people understood it, as it's not like any other loan in existence (it doesn't even appear on your credit report, so doesn't affect loans or credit cards.)
@@AdamDunebugDunas That's the problem. People assume that because they have been to Uni they will earn well. I know plenty of people over the years who have bragged about being Uni grads, while earning the same, or far less than me. So no, it isn't a tax based on income. It's a tax based on (usually) poor life choices, spending 3 / 4 years studying for a degree which 90% of recipients will then not use. Unless you're going to be a Doctor, Lawyer or Teacher (or any related profession) there really isn't much need in going to Uni and is usually much more affordable ways to end up in the same career.
Meanwhile in Sweden: The interest rate for student loans are 0.16% during 2019. And remember, university is of course free of carge in Sweden, this is just a loan you can take to cover living costs if you don't want to work part time jobs while you study. Crazy system in the UK :(
@@danielwebb8402 Haha, yeah the classic "iT's aCTuAlLy NoT fReE" argument, cute Fact is that everyone in Sweden with a job can survive on their salary and have a good life, despite these "incredibly high tax rates", so what's your point? I think most people would rather trade a little larger percentage of their income to never have to worry about getting bankrupt because they decided to get a degree, or have a child, or "decided" to get cancer (because sometimes it feels like you people believe it's a decision). It's pretty obvious that our system is better when not even the most right-wing parties in Sweden want to change it.
@@danielwebb8402 free at the point of use, obviously. nobody thinks that the education is just done out of thin air with no resources. clearly if it is a government program the government funds it the same way it funds everything, with taxes. and in the end the tax burden is less than the debt burden so it is a better way to do it.
As England, has to always differ from what the rest of the Europe does (power outlets/ driving side/ pound/ imperial) they had to follow American in the pursuit of University capitalism.
It isn't the capitalism aspect at the core, that's just the Tory way of trying to solve all problems. The problem came in the 90s with the very socialist idea that everyone should be able to get a degree regardless of academic performance, pushing so many people into university that the cost became too much and setting us on this path, so now we have worthless degrees in pseudo academic subjects and not enough people with vocational or practical skills.. and of course the conservatives see it as an opportunity to make some money.
@@thomaseboland8701 Double insulated makes the EU power outlet the best of both worlds. There is no safety issue in the whole of Europe with this outlet, so the point that a non-polarized outlet is inferior isn't true.
You don't pay much of the debt anyway unless you're earning a lot more than £25k a year. And if you're earning a lot more than that, you can more than easily afford that much. The problem with Student Loans in England isn't the debt itself, it's that no one understands how it works.
@@AdamDunebugDunas hear hear :) Precisely so :) And so it isn't debt per se, in the strict sense of the word, it's rather the potential debt that's conditional upon and linked to one's future income for a number of years. I would suggest that a fraction of one's salary as a means of repayment of one's student loan isn't significantly going to affect one's future standard of living.
@@AdamDunebugDunas The debt IS a problem, not individually but collectively because unpaid loans are just a way of kicking the can. Arguing that students don't have to repay their loans is a bogus argument because that debt still needs to be repaid eventually. The government is hoping inflation eats away at this outstanding debt while wages grow, making it easier to pay back over time. However, this assumes wages outpace inflation which they haven't done (until this year) since 2008. Using taxation to fund education ensures those who've already benefited from a university education subsidise current and future students, instead of shifting the burden onto future generations. Also, the current system is a compromise brokered by the Lib Dems while in coalition. Given a free hand the Conservatives would've taken the privatisation of student debt further and will still do so, given the chance.
@@GonzoTehGreat The debt doesn't need to be repaid eventually as the government owns the debt, they've already paid the universities. The debt is only there to take as much money back from the students as possible and everything else is subsidized by the taxpayer. Taxation already does fund education, that's how the money is paid in the first place, the loans are from a fully government owned company (Student Loans Company.) The conservatives haven't said anything that remotely resembles touching the current system that has been around since New Labour. In fact, the loan system has meant that a more even percent of richer and poorer students can go to university compared to when it was free.
@@AdamDunebugDunas The debt is ISSUED by the Govt but repaid by the students and whatever they don't repay is OWNED by taxpayers. The loans are effectively a form of INDIRECT taxation (hence the term "Graduate Tax") when DIRECT taxation works just as well, if not better. The Conservatives have their hands full with Brexit right now but have been financialising sector after sector since Thatcher. New Labour also adopted many of her policies. Switching from direct to indirect taxation and introducing student loans opens the door to further privatisation which has always been their agenda. It's not a coincidence that course fees have continued to increase even after the huge increase in 2010 and they will continue to do as long as they're in power. The current scheme, which is a compromise, only exists because of the Lib Dems negotiating it while they were in coalition when the changes were made. Universities should offer educational opportunities to all, not just the richest or poorest students. As usual the middle class, which represents the majority of students, is being ignored.
I went to university feeling unemployable with the expectation I would leave with a degree that meant I could apply for jobs as a graduate and that would mean something. As it is I am stuck living back with family after 3 years of freedom, incredibly depressed and only able to get low level jobs I could have got at 16. I constantly apply for roles that should easily be graduate positions or early level (particularly given my volunteering and work placements in the field) and am told "since we see you are a recent graduate we do not believe you have the experience." Employers want experience, not education. My degree feels not only utterly worthless but a massive negative which has dragged down any non-accountant or other-very-specific-courses student who fell for it.
@@Genesis3Chi As you've discovered, you were not wrong - you can select supermarket work, coffee shop work, manual labour, call-centre staffing and the like. Your options are limitless! Thank The Lord you chose English!
I don't think a degree in English is worth the effort: most people want you to be focused in an area - the degree you chose was "too general" whenever I talk to employers: they want you to choose a focus - it's why my sisters thought English was a waste of time: no employers are seeking out English majors: if you want to be an admin you pick up a business degree, you want to be a caterer you do a course in culinary: people often around me say they want effective communicators but no-one went to university to be one. They pick a focus because at the end of the day they need work. You want to be effective at communicating at the workplace? You do seminars at work - not study a degree for 3 years. Also @Jimsy I think your comment wasn't exactly helping: she was stating her degree was undervalued not that her options to low level jobs were limited. She clearly wanted a better job: most people her age are after those opportunities but the problem was what she chose to get a degree in. Usually those who get a degree in English do teaching because it's not a degree sought after.
As someone who is acutely aware that he'll never be able to pay off his debt, this was a fascinating video. I particularly found the part abut the old system being moderated by Durham and London interesting, as I read and have a Bachelors and Masters degree from Durham. It all feels a little ironic, and I also wonder how this will affect me now that I've moved to Germany and I'm no longer putting anything back into the UK economy, at least not directly through taxation. I always suspected it would be a huge debt bubble.
I thought it was still payed through tax no matter where you are, seems a bit of a logistical nightmare. I just assumed. I know that US students get chased down for their debts.
@@mrmagoo-i2l I think US students have it even worse. At least the 9% repayment occurs above 25k income. That's not terrific, but you can live on 2 grand a month, especially if you marry and co-habit. Of course the problem is your savings will be non-existent, but that's it. US borrowers will on the other hand try to squeeze every penny back from you, no matter what, even if that means pushing you into poverty.
If I'm not mistaken, you are supposed to report your yearly earnings to an UK Embassy, and voluntarily pay off your student loan according to said earnings. But in practice, they can't really enforce that in foreign countries, and most people don't even know they were supposed to do that, and just end up ridding off the 25 (now 30) years until their debt gets written off.
Idolator ... that was my understanding as well. I know several graduates who have left to work abroad partly to avoid repaying their student debts. What a perverse incentive this stupid system has created.
If you want to be able to move back to UK for good in the next 20-30 years I suggest you do the right thing and pay off your debt as you would pay back a normal commercial bank. Extortionate interest, yes. But remember that money you don't pay will have to go out of places like NHS i.e. not paying is not really victimless. Anyway that is my view but what do we eastern europeans know?
"Up in the morning and out to school Mother says there'll be no work next year Qualifications, once the Golden Rule Are now just pieces of paper" Billy Bragg wrote that in the 80's and now its more true than ever.
As someone who takes calls for Student Finance England*, I concur with just about everything said in this video. The problem is with the education system in general. People are not getting smarter. They are getting better at completing specific tests which makes it look like people are getting smarter, but the reality is that a lot of young people never learn common sense or important life skills like filling in a form (when they haven't been given all the answers in advance). Heck just this week I've had 2 callers asking about progress on their application, when they haven't submitted one, and another who had no idea what a (household) bill was - and these people are our future! While maybe not relevant now, one bit of advice for any students applying for finance, get the application in early, we generally recommend May for new students and June for returning students, but the earlier the better. Too many people wait until after they get A-level results or even September and get burned as a result (we will not fast-track an application just because you started your course already). * Before anyone asks, this is my own personal opinion and does not necessarily reflect the opinion of SFE or any other part of the Student Loans Company (SLC)
No, this is so badly explained it's terrible. Student loans are more like a graduation tax, the loans themselves are owned by the Student Loan Company which is publically owned, people who get successful careers pay back into the system while people that don't aren't burdened with huge loans.
@@AdamDunebugDunas So if after 30 years the loans get wiped off why is everyone so nervous about being x amount in "debt"? Its more of an additional tax which only really applies for those who get successful careers.
Something relating to this, which I feel isn’t talked about enough, is how the mass expansion of further education and the introduction of student loans in England, occurred alongside the sudden and rapid increase in property prices throughout most parts of Britain. All these new students needed somewhere to live, so property ownership suddenly became much, much more lucrative. You could say that having students as tenants is a reasonably safe bet, as their student loans mean they’re unlikely to miss rent payments. So, you’ve got millions of young people getting burdened with obscene levels of debt all whilst actively contributing to a property market which is going to be virtually inaccessible to them, creating additional financial difficulties for them in later life when their only option is to pay rent, rather than own property and achieve a greater degree of financial independence. This has all been very profitable for some people but a complete and utter disaster for most. Most of the losers here have been scammed big time. And to think, this was all started by a Labour government.
Ilovebrownbreadtoast did you watch the video? Or anti-labour bias too strong with this one? Starts under Major, and the financialisation of the university started much earlier.
no nah Regardless of where it all started, it all culminated under a government which at the time was vastly dominated by the Labour party. In fact, since that government were in power, no future government has ever had a majority like the 1997 Labour government did. I think it’s fair to say that, if they wanted to put a stop to it, they most certainly could have done. But they didn’t and I presume they justified it all by claiming that it would improve social mobility and all the usual bollocks. So sorry for insulting your precious Labour party. Just remember, it isn’t a bias if you’re making a fair assessment of the situation.
Ilovebrownbreadtoast 😂 All very good my man. But you should maybe watch the video again. No one reading this, including me, is convinced at all. If you're looking to make the blame game though, why don't you look at Majors policy, Cameron's £9000 hike, and THEN come and talk to about how NEW labour (a centrist party) did all those nasty things. Which I agree, were shitty. Then sir, if the finiancilisatuon of the university does upset you you like it does me. Then go and take a look at the current labour parties policy eh? An actual left party. Right wingers and neoliberal killed the university.
I'd like to point out that IQ tests are constantly restandardized so that a score of 100 will always be considered average. Since the equivalent IQ of people has been rising, they have been lowering the scores through various means so 100 is still the average IQ.
How intriguing. That must mean that my IQ has dropped over the last 40 years even if I got a little smarter! How reassuring. Excuse me while I feed my fish, Dunning and Kruger.
True. The Flynn effect is around 3% per decade. So maybe we have got 9% smarter in 30 years. But not 2000%! A first should mean "genius". When an employer sees a first class degree they should assume you are a genius. If we are now giving them to 20% of students, so 10% of people, then that clearly isn't the case. "Slightly cleverer than random person" (IQ 104, top 40%) shouldn't = 2:1. That is useless to an employer and lying to the students.
@@JesusJuenger because if I was a high end employer I'd want to be able to identify the tippy top. If a first is not unusual then what does it even mean? How do you identify the best? Prizes for all and grade inflation isn't helpful to anyone, except the self-esteem of average people. And only then until they hit the real world and are surprised they can't walk into a job. I work pretty high up in insurance. We wouldn't even interview someone with a 2-1. As there are enough people with firsts that aren't even competent enough.
How about a video about private and public high schools? There seems to be a big difference between private and public high schools in the UK. I recall no big differences between ours. Heard a private high school founded by Samsung got escalators...but if there was a big difference it was school lunch and dinner quality.
There is a huge gap in quality between public and private schools here in the uk. Private schools are better funded and because of this they produce a lot more senior politicians,top judges, lawyers, diplomats and other high ranking officials. Though this could change because labour have changed their policy to scrap private schools and improve public schools so that more working class people can hold top jobs again.
Great idea but I think it would need splitting between the public sector schools, private schools and what are known as 'public schools' which are in fact elite private schools.
A Liberal Biochemist Why do you people call your private schools public schools? That one confuses me over on this side of the pond way more than any other dialectical difference.
There's a pretty obvious alternative explanation for how grades could have risen without either students getting smarter or academic standards having declined: students nowadays have the internet (and various other learning resources that were not there in the past). I'm not sure how exactly it works out for Arts courses, but for science courses, as far as I can tell what used to happen is that if you couldn't understand your lecturer's explanation of any given concept, or understand what was in the textbook in the college library, that was it, you sunk. Whereas nowadays you can go online and find hundreds of different explanations of pretty much any concept, along with example problems to practice on. Given this, it would seem extremely strange to me if grades WEREN'T rising, even if the students nowadays have identical intelligence to people from the past. Thinking about it more, even if grade inflation is real, surely it can't affect how many high paying jobs there are in the first place? It might be frustrating on an individual level if you are someone who would have gotten a first even with higher standards in place, and now you have a degree with the same number on it as someone less academically talented. But the same number of high paying jobs would exist regardless of how many people have 1sts (the amount of work companies need done does not change due to the accuracy level of degree qualifications, that just does not make sense). Firsts being easier to get might make it a bit more random who exactly gets those top jobs, but regardless of who gets them, there remains exactly the same number of people with student debt they need to pay off and an insufficient amount of pay to do so. To put it a simpler way: there are a set of students who need well paying jobs to pay off their student loans, and there are a certain number of jobs that pay well enough to do so. The number of such jobs available must be lower than the students with degrees, otherwise we would not be talking about any of this. It does not matter how well or badly the ranking system for the students works, there will still be the same number of students with insufficiently well paying jobs to pay off their loans, just different specific individuals in the "well paid" and "not well paid" categories. So all in all, I can't see why grade inflation would play any role in the problems ex-students are currently facing with loan debt .
This would have been a perfect video without that segment. It sounded too much like Daily Mail propaganda. We also have a recent case study that dismisses the "standards dropping" hypothesis: GCSEs. The Government recently and quite deliberately made GCSEs harder. There were many, many complaints by schools and headteachers that the material was not suitable for students at that age. There was an expectation that grades would fall but what really happened? Grades rose. All that happened is that students anticipated the material would be harder and so dedicated much more effort to studying the material. Britain is one of the few countries in the world that seems to express glee at students failing and excitement when they fail. It is hard to explain this mentality to those from other countries. This would have been an authoritative video without that garbage segment in it.
@@black1blade74 : Exam boundaries have pretty much always been adjusted to account for varying difficulties in papers across years. The point is, despite the Government deliberately and quite openly making the exams more difficult, grades still rose. It's only in Britain where grades falling is seen as a good thing. We really need to accept the fact that a plausible reason why grades have risen is because 1) there are more materials available now than ever before and 2) students study harder now than in the past. There is a very rational reason for 2). Unlike in the past where you could leave school with no qualifications and still make a career for yourself (even in the City of London) nowadays you are royally screwed if you mess up your exams. The stakes are high and students know this.
@@babatundeonabajo yeah they just examine the distribution of marks and decide the cut off. This is fair under the assumption that people are of similar ability each year so an A* one year should be worth the same as an A* the next. The fact that grade inflation still occured after the GCSEs were made harder just means that the exam boards are deliberately facilitating grade inflation because exam boards are a market for schools. Going back to main topic, I think the system from the 70s where Durham, london unis and Oxbridge would calibrate exams for other universities. A problem rn is that going to a better university with higher standards is that you've objectively made a terrible choice if you get a 2.2 because you could have easily got a 2.1 at a slightly less academically rigourous institution.
Both New Labour and the Tories have been pursuing a misguided Thaterchite inspired Financialisation of the economy, including previously publicly funded areas, such as Education, Healthcare and even Defence. The growing Student Debt Crisis is just one of several problems on the horizon ensuring the UK is destined for a 21st century of stagnation rather then progress. Parliamentary reform is desperately needed to replace the idealogues running the major political parties with competent leaders who prioritise the interests of their citizens instead of subverting government to line their own pockets.
I've tried explaining these issues to people many times, particularly the bill waiting for the government after 30 years. It's a ticking time bomb. Remember when Corbyn said we should wipe student debt now and everyone said "where does the money come from"? That question should really be reversed... where is the money coming from to pay it off plus 30 years of extortionate interest rates? I presume those that put this system in place in its different stages didn't care because they knew the negative consequences would fall on a different government
I had a great time at uni. Hardly studied at all but partied every week and played a lot of video games. Got a massive load of debt and have paid back less than £1000 of it in the last 20 years. I am currently self teaching, and aim to have a well paid job in 5 years, so I can still make good money but also avoid paying back my student loan. Thank you tax payers, you also paid for my 4 year long party x
Sorry to point this out but you have a tendency to put out these videos on "U.K." issues which are actually "England" issues, ignoring that things in other parts of the U.K. can be quite different. For example, my Sister just started Uni in Northern Ireland, and for a start her interest rate is only 1.75% on Tuition Loans. Looking back at previous years the highest it's gone is 4.8% way back in 2007, while in 2009 it was actually 0%! Also, they didn't replace Maintainance Grants with Maintainance Loans, they offer both. My sis turned down the Loan, but was entitled to the Grant, which is great because it's worth about the same but doesn't have to be repaid. This could be seen as both better and/or worse than your own situation, but it's undeniably a very different one, which is my point. (Also, it's "Fewer People Going To University" at 7:58. Sorry, couldn't help it.)
Yeah but the tax system is UK-wide. That means even if the problem is only in England and Wales, taxpayers across the country will have to pay to solve it.
I was thinking about going to uni in the early to mid 2000's and already had older friends coming out with degrees that proved to be useless. This tipped my decision making in favour of not going. That and general career indecision.
Yes. Not to mention that it will probably prevent you from buying a house....and by the time you're 52 when it stops you'll probably be unemployed anyway and as the Tories will have removed healthcare and benefits from your reach, it won't worry you for too long as life expectancy will fit neatly with your age profile.
@@BrianMcGuirkBMG I mean houses are expensive as fuck anyway and bad investments. . . I much prefer to rent and be flexible with moving house for my career and want to see the world so why the fuck would I want to own a house you know? To show off to people how I am going to have to pay to fix my heating whilst at the same time paying the bank money for a mortgage? Nah not for me :P
Here in Scotland, where Scottish students don’t pay any tuition fees, instead the Scottish Government covers that cost. However it’s not an incentive for those universities to take in more students, because the amount of money they get per student doesn’t actually cover the cost of that student, international and (to an extent) students from the rest of the UK, along with research grants, subside that cost. In fact it actually seems to encourage higher academic standards because universities are encouraged to become more research intensive, as that’s where the money really is. The education system here in Scotland is also completely different in general.
@@jimsy5530Yes, I am a leave voter, but more for the fact that the EU is a shady organisation, they make too many rules and we do not get value for money not because of migrants, this is a topic the remainers have brought to the forefront of the debate because they do not want the focus to be on the organisation of the EU , however on the subect, if migrants were good for the economy, then we would have been importing as many as possible when we had a manufacturing industry in the 1960's, there were plenty of wars back then so there were migrants travelling
One of the most ridiculous parts is that the government "helps" the poorest students by loaning more money to them in the maintenance loan which means they have to pay back way more
I paid my Postgraduate UK student loan (3000 pounds) within 3 years of graduating (2009-2012). I was a EU citizen and stayed on in the UK workforce, slaving in horrible working conditions, to make the payments. A lot of my fellow EU students just disappeared back to their countries without paying back anything; and were never worried about anything. Debt is a state of mind, nothing to do with finance or economy.
One extra detail I would include in this whole scenario is the pressure put on schools to rank well in tables. The schools then dangle the university carrot, including all the questionable benefits, to pressure their students and so on.
- Schools encourage students to go to uni without thought about quality of uni or course because it looks good for the school. - Many parents encourage kids to go because they don't realise degrees have depreciated and think it will lead them into a high paying job. - Many kids look at personal interests or dream jobs instead of jobs which are achievable / in demand because they don't have the knowledge of the labour market. They also don't appreciate how the loans work or the impact on wider society. - Young adults come out of the safe bubble of uni with debt, a lack of direction and then get chastised for making a stupid decision years ago. Then to top it off see that they've contributed to a debt bomb for themselves and future generations.
Never paid any of my student loan. As I've decided to set up my own business, and don't pay myself through PAYE. Therefore.. no student loan tax for me :)
In Wales you get a maintenance grant based on household income, above £55K, you get £1K per year and you get more the lower it is. When household income is £18K or lower, you get the whole £9K. This applies to unis outside of Wales and those studying in London get larger grants. A few years ago, Wales would just pay around 66% of your tuition fees (So you end up paying around £3K per year), this applied to unis all over the UK.
I feel like the education system has really forced my hand into joining a university, really wish i would've gone with the apprenticeship route it seems like the way better option
@@Thegameshadow1 University is effectively free in the UK, but those in the UK that go to university and are successful (earning above £25k a year) pay money towards their 'loan.' If you earn the average UK wage of £28k a year for example you'll pay £270 a year for up to 30 years, after which the loan will be written off. The loans are better described as a graduate tax and the loans are owed to the government-owned Student Loans Company. The taxpayer pays for the cost of uni straight away, this system just serves as a way to recoup costs from students who do well for themselves. It's a best of both worlds system that is woefully under-explained to people and videos like this do it a huge dis-service.
@@AdamDunebugDunas Thank you for your swift reply. I thought it was a rather nice video, but most likely because I don't exactly know how it works and I was never bother to research it on a bigger scale. Where did you take this information from?
This video hit me hard. I entered into university aiming to go the whole way and be a historian or become a government worker, a civil servant. I’ve just completed my masters degree and had that whole plan destroyed. The debt is so crushing that I’ve realised no matter what job I take I am screwed over. I wanted to do some good in the world, but it just doesn’t seem feasible as no government job will take me without a different arbitrary qualification I didn’t gain at my university. My degree feels pointless and to some extent, I wish I had just done an apprenticeship instead, at least then I feel as if my education may have meant something. I may have already gained my dream job. As it stands I feel like I’m an uphill battle where no matter what I will have to go into an apprenticeship after going to uni for 4 years, or pay for a course to get this qualification. When I went in I was told I could get a government job with my degree, now I’m aware that was a lie. It was just something to get me to sign on as a student. I regret it deeply.
Just remember you don't start paying it back until you earn over the threshold £25,000, so don't worry too much. Then it expires after 30 years. So depending on how much you earn depends how much you pay back.
1. Student loans should be seen as a tax not a loan 83% of people pay it off. 2. Too many people go to university doing pointless degrees , in yoda studies or business studies my cat could pass . Universities used to be for the top academics with others going to apprenticeship etc . These day everyone leaves school with As and has a degree (they are no smarter than the past) so there is no way of telling if a job seeker is excellent or poor the entire education system is completely flawed .
It's simple: Choose a degree in a field that requires a degree and that society actually values (that isn't oversaturated). The issue is a lot of people choose degrees that don't lead to lucrative careers (art, coding, journalism, English, gender studies, counselling, political science). The simple fact is: the best way to make the most of your degree is to choose a field society values more (not necessarily at the low end but has a high upper ceiling) such as science (particularly biology, and forensics), social science, medical fields (doctor (human and veterinary) psychologist, radiographer, pharmacist, surgeon, GP etc), choose subjects society value highly and in the case of medical fields, cannot do without.
@@matthewwatt2295 Coding is not a useless degree. It is however an oversaturated industry (the supply outweighs the demand) and thus is far lower coveted and paid than less saturated industries. I'm talking standard programming. software. More specialised areas such as AI will of course be better paid as it is a less common and far more complex specialisation.
This is already outdated - ONS have just finalised a new treatment of student loans and how it counts towards public sector net borrowing - gov have to account for debt now, not in future. And this also glosses over a huge improvement in teaching standards - lecturers now expected to have teaching qualifications, so that's obviously going to have a positive impact on student achievement
@@black1blade74 I agree, not across the sector - but sector-wide analysis always underplays the big differences between individual institutions. It's not even as simple as talking just about universities. So there are loads of drivers for the shift in grading and looking at it at such a broad level doesn't really do that justice.
@@JamesBluring On an individual basis for an employee or prospective employee, it doesn't matter that sector-wide analysis ignores certain details, because employers do the same. No HR bod is going to spend time sorting out whether a certain university uprates their degrees. They'll go through 200 grad-position applications an afternoon, bin the ones with out a 2.1+, and be out the door at 4.30.
I think it’s important to remember that student loans have no affect on your credit score and will eventually be written off so on an individual level it doesn’t feel like regular debt. I graduated 6 years ago and have never earned enough to pay any back. The £15k earnings figure quoted in the video has adjusted over time, I’d currently have to earn over £1500 a month according to the gov website before I’d have to pay any back. I have a mortgage and a very high credit score regardless of the £20k+ I technically owe... it doesn’t feel real! I get a letter once a year reminding me how much I owe and it goes into a drawer forgotten about for another year. I wouldn’t let the cost put anyone off going to uni in the first place.
There are few diplomas really worth getting into debt for. Also around @4:00 why would you take a loan if you can pay if off immediately ? Rich people don't take those kinds of loans to start with.
You take the loan because it gives you additional capital for 3-4 years without any interest being charged. So if you stick 50k into a high-interest bank account, live off your loans while you study, and then close out the bank account to pay off your loan, you'll have made a profit. Of course, with the actual loan amount being partially means tested, it'll be closer to 40k than 50k, and even a high-interest bank account isn't going to be the best way of getting a return on investment, but it gives the basic idea.
@@adamc4951 My apology, that's changed since I studied (or at least when I studied, the interest rate was significantly lower than you'd get from a bank). The general point still holds - so long as you can invest the money at a higher rate of return than the loan interest, you profit from taking the loan.
Yes but don't forget, prior to student loan only about 20% of school leavers went to university. Blair came up with a clever scheme to drastically reduce youth unemployment by stating that 50% of youth will go on to higher education. The problem now is that half of the degrees are worthless in the workplace and the graduate is stuck with a debt and would have been better not having attended. I have many times as an employer been shocked when a job applicant with a degree is severely lacking in basic literacy and communication skills.
I feel a-bit disappointed and misinformed, I’ve encouraged my daughters to go to uni because she loves to learn, I for one didn’t go enough in to student loans and it really means. Thanks for information ℹ️ now I feel its my fault for having that debt.
Especially if she went to a pretend 'university', not an actual Red Brick or Oxbridge. Still, you can visit her every day and chat about it when she's working at Costa post-graduation.
Think of loans as a graduate tax, it is unlikely she will pay them off but they will be wiped after 30 years, if she wants to learn then there really is no other place to do it. You certainly shouldn't feel any guilt by encouraging your child to pursue more education.
Sounds like you'll be perfectly fine if you're in the UK, the repayment scheme is like a progressive tax where you only pay 9% over £25k. The average wage in the UK is £25k and if you're earning a load over that amount you'll likely be doing pretty well for yourself anyway. Earning £26k a year would mean a Student Loan bill of £90 a year.
I got a 2.1 Masters degree in Electrical Engineering and its absolutely worthless. Ive applied to over 150 jobs and only 2 ever lead to an offer. Ive been laughed at for asking more than minimum wage and my first proper graduate job was £18k, I was repaying £1 per month of my student loan while the interest adds over £500 per year
It's really shocking just how unaware of most of this I was, and I finished my undergraduate degree 4 years ago now. No one explained just how much the interest actually was (0.6% and 6% are just numbers to a 17 year old). I'm not even really mad at the government because I fully expect them to treat young people like shit, but why isn't this information explained to people simply and often in the media? I know why now. It's because this system is so God awful that to present the reality of it would be 'bias', which can't be allowed.
I would disagree that degrees are worth less because there are more universities based of Jon majors scheme, but more of the fact that experienced based jobs demonstrate a more practical value than the thousands of students picking pointless niche degree specialisation.
They should just scrap all tuition fees and student loans, replace them with "free" high education and student grants. Then that can be paid for with a graduate tax. It would streamline the whole system and would probably cut back on bureaucracy as well.
While TLDR's videos are usually pretty good quality, this one massively suffers from a poor understanding of the Student Loan System and how repayment works.. and how this system is actually massively more successful compared to the previous free system as it allows much less money to be owed by the average tax payer which is instead paid as a 'graduation tax' by the graduates themselves in the form of these government-owned 'loans.'
I graduated with £35000 in education loan which had about 11% interest rate. I paid all of it within 2 years. Sounds crazy but it is possible. If you’re thinking that I had to sacrifice lot of things, you’re wrong. I took two foreign trips, bought a four wheel drive car (not on loan, paid full cash), the latest iPhone, iPad Pro, MacBook Pro, GoPro, and more. The key is to save, cut unnecessary spending, don’t use credit cards unless you’re in an emergency. All the best to everyone with lot of debt.
They started charging money to get higher education.... if you have debt it's a tougher decision to make even more debt to get a house.... or even to go for a longer degree like Law or Medicine which have very stable work which makes banks more likely to give you cheaper/longer loans... now Maybe Billy from Liverpool who wanted to become a lawyer has to think twice about it because he can't afford it... and even if he does for the next 10 years he has to pay it off and maybe then he can get a house and wife if he isn't depressed from the stress of a student loan
@@LoFiAxolotl So "they" used to provide higher education for free? It was nice of all those institutions and educators to work for free. I wonder how they afforded their houses and families.
@@ChristieNel Free higher education usually refers to a system where the universities are tax funded... obviously you're either not getting that or you're trying to be dismissive through sarcasm which both make you look extremely stupid
5:50 I'd like to point out the Flynn effect for IQ where younger generations outperform older generations. IQ test are adjusted for this every so often as the average population IQ by definition is 100.
and.....our parents got free education and it was much more affordable and easier to get on the property ladder and their wages multiplied over their working lives. We paid massive student fees, house prices are ridiculous and wages aren't moving.
Might wanna exploit tf out of Germany's tuition-free higher education system for everyone worldwide at the cost of monstrous taxes, which you're ain't gonna be subject to if you leave after graduation
Glad to see you guys read my comment on the previous uni fees video and raised my points ten levels higher in this video. Hopefully at minimum it educates future potential students so they can make a more informed decision.
@@babatundeonabajo if you count working as a barman after a history degree "employment" then sure 😂😂 we all know computer science is the most employable degree
I was too in CS and in my country, you are paid to go to uni (you can take out loan too), but realized it was waste of time since I could just get employed straight away which I did.
But unfortunately very misleading. There's no crisis, the loans are all owed to a government-owned company, so the interest doesn't have to be paid back by them to sort it out. As for the students, there's no crisis as they're not proper loans, they're paid back like an income tax of 9% over £25k, meaning if you earn £28k a year (the national average income) you pay back £270 a year. If you don't pay off the entire loan in 30 years, then it's wiped off (remember the loans are entirely owned by the government.) This means that the system is paid by the students, but for those that can't afford it, subsidized by the tax payer, it's the best of both worlds. Successful students pay it back, less fortunate students have it covered by the tax payer.
The most frustrating thing is that this future debt mountain was so blindingly obvious when tuition fees were introduced, but it never went through proper scrutiny. If 15 year old me could see the problem, why couldn't anyone else, especially when politicians espousing the loans system positively boasted that the majority of students wouldn't pay their full loan. Its an absolute scandal and I'm sure is making some people stinking rich
So this video is great, but there is one aspect that is missing: wages. The UK wages are incredibly low which has been compounded by austerity measures post 08 crash. Wages need to increase. The 7.5 minimum is appalling. Most people with degrees wont see 60000 and is worse if you are employed under the NHS.
Germany pays Euro 139.2 billions for Education( 4,1 % of GDP) in 2019, The UK: £89.4 billion (4,2% of the UK GDP),also 2019, why is the tuition fee in the UK still so high? In Germany it'is basically for free. I have to pay back up to 10.000 Euro after my graduation this month. My loan is at around 45000 Euro.
I paid off my mortgage by 28. I deliberately avoided uni. People will look back at this era and think students were crazy to get in £40k debt with no guarantee!
Part of the problem is that not only are degrees just basically a given for people to have now, but also the choice of degree topic is questionable When I went to uni, over 75% of the students in my year took degrees in physiology and psychology. So large numbers of students are creating huge debts but ending up with degrees that don't actually offer any benefit to their career
To anyone considering uni I would think twice before just walking on any course and handing over these thieves money. Its never highlighted the courses with the jobs at the end of course there's plenty of courses I don't know how there operating that when you graduate no jobs at end so pointless really. Make sure you do your research on a course that actually has jobs!
They're not thieves haha. One problem is industry and the recruitment agencies which put out jobs that need extensive experience or it is a low paid job. So then it is no surprise that taxpayers end up paying it because they're too dumb to actually help graduates get to pay them back. It is the system not Universities and yes it should be a tax because currently wealthy families who pay out of pocket mean the graduate has no debt to pay interest or any repayments whilst middle income graduates and those with high income families from not rich families end up paying the most overall.
@@anthonychurch1567 Either way it should be sorted out. Such as many problems with the UK. What I don't get is why have courses with no bloody jobs at end of the course? Should be more highlighted when joining the course but no they say there's plenty of jobs.
Graduated in 2014 with a 1st in History, never been earning enough to pay it back, currently sitting at £27,000 XD Probably never gonna earn enough to start paying it back ayyyy
@Russell Hobbs I attended 3 different universities in the UK for my degrees and I can quite confidently say that the history grads did very well for themselves. Amongst them are venture capitalists, consultants, hedge-fund managers, editors, headteachers, and many more. I must admit though, that the 3 universities all ranked within the top 3 for the degree itself which must've skewed the representation quite a bit. Even within the universities, the history students were very well represented and respected, with 3 consecutive history students being elected as president of the union during my time. Many also became presidents of their JCR/MCR and/or Senior Man/Woman.
@Russell Hobbs not necessarily. What people often forget that what a tertiary education provides is not limited to knowledege in the field you're studying, but also with skills vital to many other aspects of life such as critical thinking, how to research a topic efficently, how to present the results of said research in a proper manner, and more.
@Russell Hobbs Really? Your first employer is going to teach you how to do a litterature study? How to interpret and apply academic tests and then how to communicate this on a academic level? Just what kind of first job do you think most people get?
@@user-kb8rc5vq2i If those things are required, then yes. The employer would give training and learning on the job. Rather than just being a mental masturbation exercise of no use in real life but you then blame others you wasted 3 years doing it.
You should really do one for horrendous system in the US. Talk about broken? Holy smokes. Students in the US owe over one trillion dollars in debt. It’s a catastrophe.
Adjusting for population size, that's 200 Billion USD (the US population is ~5 times larger), and adjusting for the exchange rate, that's actually pretty much identical to the UK's 140 Billion GBP.
As someone who finished university fourteen years ago, I have obsessive dreams about winning the lottery on my graduation day so I wouldn't be stuck in a crap job for the rest of my life, despite my university qualification. Universities are a CON.
The education system: Go to university and get £40K+ of debt, become a teacher, teach your students to get good grades to get into university.
Teach to get good grades not to learn things
@@everything-has-a-handle-now True. Absolutely Spot on :)
The circle of life 🎵🎵
ilz20 shut up
Luckily for me I was given giod advice from an accountant at age of 17 n told to not go uni but rather go to Kaplan and get a job in finance. It was hard work but it meant my employer paid for my Chartered qualification and I have zero debt ;) Also, education system teaches you to get his grades and become a good employee. It does not teach you how to manage money and become an entrepreneur.
English people: my student loan debt is crushing
Americans: hold my beer
Irish people: You have beer?
@@BrianMcGuirkBMG Beer like substitute
If you are going to compare us to the US, of course we can feel good about ourselves. Which area of life does that not apply to?
I'm from the UK and paying back the debt is like my mortgage I hardly care it is not crushing and we should be thankful it's nothing like the USA's
Americans: My hospital fee is debilitating
British people: Hold my crumpets
I agree that students have been horribly misled and misadvised into unaffordable borrowing to pay for degrees that are often worthless (at least in terms of employment prospects). However, you should be clear that your video describes the situation of tuition fees and loans in England, not in the UK as a whole.
I feel this, I’m from Belfast but studying in Liverpool and my debts are eye watering lol
I don't think Scotland is quite as bad, the general tuition fees are lower but the student loans are less also (max £6950 over a year from SLC)
It doesn't matter because the cost of worthless degrees still lands on the taxpayer in the end through the UK and across the West.
I heard if you're Scottish, University is free if you are studying in Scotland.
@julien, I think you missed the point of the video. The problem is that degrees are taxpayer funded, whether that is planned or due to student debt default. That will add to the burden of the less mobile squeezed middle class, who cannot pick up with their wealth and move to a tax haven.
This seems like an absolutely insane system that doesn't work for anyone.
works for the bank though
Yeah it is I think all what will happen is I won't pay it back and it will get wiped. Absolute stupidity should be a garunteed job like if you do an apprenticeship at end of course.
I’m as conservative as they come and after watching this video I think you might be right
in Slovenia higher education is state funded...as it should be
They work for the finance companies the Tories sell that student debt to at undercut rates. It is way above market interest debt that is secured by the government, so why wouldn't nasty finance companies want it. And it can be yours with just a bit of help from your local Tory and a small donation to their fetid little organisation they call a party.
my loan was 63k when i left uni 3 years ago its now up to 67k ill never pay it off and im working full time as a doctor. i have no incentive to pay it back since im only paying interest. ill actively avoid paying any more than i have to until its written off. i feel like i was lied to about student loans.
Well if a doctor cant pay it off - who can? Im guessing its going to be the people you keep well enough to work... just saying, it seems unscrupulous to go down the route of an admirable and even honorable profession and shit on our doorsteps At least you were candid - as am l.
Yep. We've been sold a lie. We were actively encouraged to go to university in Sixth Form and were told not to worry about the debt.
@@bicyclemanNL i came from a poor background so i dont mince my words. i became a doctor to help people and yes i suppose now i do live marginally better off than my parents but i work my ass off. i miss birthdays, weddings, christmas, you name it and the government still shits all over doctors and makes us the enemy. i have an unpayable debt and although i live my country and my people and i dont want them to be burdened with debt thrust upon me, i am however providing a public service at a relatively specialist area and yet i will forever be in debt to my student loans (well for 30 years atleast).
no doubt there are who others work just as hard if not harder than i do. but i hate that despite my years of education and willingness to help others im saddled with this debt and not even appreciated for what i do. i used to encourage others to be doctors as its a great feeling to help others but the world we live in now i actively discourage anyone i know from doing it. if your going to be shat on all the time you may as well be shat on and not in debt to the people who shit on you.
I wonder if one could negotiate as many non-cash benefits as possible to keep your income low on paper, but live equally comfortably.
And this is exactly why people aren't able to pay it back, people feel they have no incentive to pay it off
And that's probably also why the rates are so high
I remember all the people that complained when students protested this in 2012, all the newspaper headlines and pub talk about ungrateful students who clearly weren't as intelligent as 'adults'. The kind of adults who always know better until they don't. Students knew this then and we know it now. It's a ridiculous system doomed to fail, and when it does it'll bring quite a few universities down with it. All done for political reasons to the detriment of future generations.
This video also forgot to mention the Student Loans company has been fully sold off and privatised so now any profit doesn't go to the government but all debt is underwritten by the government.
This is probably one of the worst legacies of the Cameron government. Y'know apart from Brexit and cementing a system for our NHS to canabalise itself.
But like everything else this generation will fix the horrific mistakes of our parents and grandparents.
What are you talking about, the Student Loans Company is still publically owned and the payback scheme for English Student Loans are more equivalent to a Graduation Tax than any kind of actual loan.
@@AdamDunebugDunas what I don't get is if student loans are more like a tax, then why not just structure and label it as such and make everyone pay the same percentage over the same period of time. That would even solve the dilemma of richer students graduating debt free while poorer ones are forced to take out a loan
@@aminboumerdassi2334 There's no point graduating 'debt-free' unless you have a starting salary high enough that you'll pay the whole thing off. As for poorer students, they usually won't ever pay off their loan or even pay enough for the interest to matter, it's not a big issue. People with middling incomes do end up paying a bit more, but they can opt to pay it off sooner if they really wanted to.
But it's important to know it's not a large price to pay, it's a small portion of income over many years that you can never default on.
Since time immemorial, every single generation leaves mistakes for the next generation to fix. Undoubtedly, they'll be the typical fair share of major mistakes made, when you Millenials are in 'power', that'll affect future generations and they'll have the burden of having to try and fix it. The only major difference today, is that past generations just simply took these 'burdens' on the cheek, as part and parcel of the 'hand over' and just went about trying too solve any handed-down problems. While all millenials today seem to do, in typical fashion, is just bitch, moan and blame others, about the situation. Let's face it, if it wasn''t for the 'Boomers', that in the past, fixed issues, which allowed anyone, from any walks of life (not just the rich & privileged), to apply for University, then many people in this comment section, wouldn't have stood a chance in hell, of even getting into University, in the first place.
The students didn't protest because of this though, they protested because they didn't have a clue about how student loans actually work
As a current student this video just gave me a heart attack, thank you for the critical information 🙌🏽
same. I am somewhat reconsidering going here
Dont' worry, think of the repayments as a graduate tax, you'll never pay it off and its fine that way! :) Keep repayments to a minimum and invest your money instead. Check out martin lewis money saving expert on student debt
as a student, i am just happy to have no debt or loans link to my university system (i am french)
You have to ask yourself, is this education worth several years of my life and a price tag possibly in the 100,000s.
"Could i do something else for a few years that puts me in a better position financially then at -100,000£?"
@@zwalafmalahesh1470 Exactly. You'd be better off getting a trade. Become a joiner, a plumber or a carpet fitter or something like that. Those jobs often pay way more than graduate jobs. 2, maybe 3 years apprenticeship then you can earn decent money with zero student debt. Well worth considering.
Why are they called "Boomers"
Previously: they were part of the baby and economic boom
Now: they left economic time-bombs for their children and grandchildren
@Dr ROLFCOPTER! r/whoosh
Only in the USA, in Asia and Africa - you know, most of the world - the generation born in the 50s and 60s are the first not to be able to retire! And most of the women would not have been educated.
This also affects their great-grandchildren and if its not stopped in less than 10 years then itll be great-great-grandchildren
I know isn't that fantastic. I'm 66 went to the local Tech college. At 16 ? Achieved skills and qualification that were usable and needed. "WORKED" very hard for 48 years.
. Own 3 houses unmortgaged. Large private pension and savings. Yes I'm smug and I earned it . Not a mickey mouse degree in daffodil flower arranging or MEDIA STUDIES. watching films and getting pissed.. Hey Snowflakes hard f....ng luck .
Steve Blanco ok boomer
As a german i often forget what a huge privilege it is to have a completely state funded education system... not just the money but especially the Grades and Ranking is very interesting
Can't wait for your vacation to be over! even if you deserve it
Not truly a privilege when, as demonstrated in this video, in the end the tax payer has to pay. Educating the youth is a socital need. Pretending that students don't need help just lead to create a shity situation we have to deal with in 30 years when their life has been severly crippeled by debt. The generation who made those decision in the 2000's (on education, on climate and on finance) where amond the worst and most self obssessed politics UK has ever known...
@@Minodrec The german higher education is state funded not the English one.... the whole video is about how they're NOT state funded (well atleast to a large part)... on the other hand german universities are completely funded by taxes and you pay NO tuition
Sometimes its good to be a german. If i would be living in UK or US i would have studied abroad. In germany i pay around 120€ per Semester plus lets say 800€ costs of living. That could be cheaper but it depends on the city.
@@LoFiAxolotl I think you read my comment a bit too fast. It's not state founded. But you still have to pay for education with a 6% interest because students are not able to pay their debt. Did you get to that part of the video ?
@@Einheit091 And even if you need financial help in germany as a student you can get a state sponsored Loan (Bafög, also available for foreigners from many countries) which you only have to pay back 50% and it's completely interest free!
"When a measure becomes a target, it ceases to be a good measure." - Goodhart's Law
Woah, he was ahead of his time! As far as I understand, this is only quite recently becoming clear from the science.
@@KRIGBERT
No, no it's not "just recently" becoming clear.
@@klobiforpresident2254 Really? That's interesting. Could you point me at some articles or give me some keywords to search with?
@@KRIGBERT
How about Goodhart in 1975? That is not "quite recently", considering how young economics is.
@@klobiforpresident2254 I wonder how clear that was back then. I mean, my impression is that management-by-objectives with S.M.A.R.T. objectives is still very much a thing, and has only recently been losing momentum as the obvious answer to everything in the public sector :l
£1000 left to pay on my student loan, i'm almost free!
How long since you finished university?
How long since you finished,how much did you already pay?
Happy 164th Birthday ;)
How much original debt? Earnings?
I never went to college, i have always been free.
I did masters, and now 1 year later im £64k in debt. I mean at least there is a big figure next to my name.
Loool
@@johnalabi3883 it gets better its growing by around £200 each month hahahahahahhahahahahah hahahahahah hahahaha hahahahahahaha
Hahahahah
This is why I got the cheapest masters possible...
@@Pcarnevaaa which ones that ma guy?
The good ol' masters degree that has little to no value once you are trying to get a job. The whole system is rigged
I think this needs a title change from UK student debt to English and Welsh student debt, as the education system is entirely different in Scotland this all only applies in England and Wales (I am unsure about NI perhaps someone from there than clarify the situation in NI).
Is higher education in scottland state funded?
NI works almost the same but only costs £3250 per year
@@LoFiAxolotl yup, pretty sure you can get up to 5 years higher education tuition fees paid
Exactly. My sis just started Uni in N.I. and her interest rate is 1.75%, plus she was able to get a grant which doesn't have to be repaid. This channel has a habit of framing English issues as U.k. Issues, which is at best ignorant and at worst disingenuous.
@@SolarMechanic Unless I am mistaken the current tax system in the uk as a whole means that Scotish and Northern Irish taxes are paid into the UK coffers and the funding for the reigions is then redistributed according to the barnett formula, so in essence this is a problem for scotland and NI as well becuase even though you have seperate systems for univeristy fees in these regions the tax payers of Scotland and NI are still going to be contributing towards picking up the bill for the English/Welsh tuition fee system
When someone robs a bank’s money its a crime. But when millions are in debt for a piece of paper it’s just plain business for these predatory institutions.
The worst part is that it still hits the government in the end, they are stuck with an artificial debt they made. It's the financial equivalent of shooting yourself repeatedly in the leg.
When one person goes bankrupt it's a tragedy. When one million go bankrupt, it's a statistic.
@@coolpeopleit But the government will be stuck with the debt 30 years from now. Since every politician's planning horizon extends only as far as the next election, NONE of them cares in the slightest bit about 30 years from now.
@@kevinlove4356 The student fees were introduced in 1998 according to the video above, so the first defaults will be in 2028. If the next election falls on jan 1st of 2020 (no idea if it will be tomorrow or in a years time at this rate tbh) then there are 2 terms before it will directly impact them. It's not as far away as you think!
ORO323 get a degree that’s worth more than a piece of paper then
I'm 19 and got good a level grades and i am so glad I am taking a gap year to work and take courses instead of bowing to family pressure of going to university. Uni is a scam now i think.
Apprenticeships are the best way, I earn close to 60k and I've never done a degree. My friend that did a degree through an apprenticeship is on close to 80k now!
Chemical Ollie what kind of apprenticeship is that if you don’t mind me asking?
empty sky I did an advanced diploma and NVQ3 in maintenance engineering. Basically I’m an electro mechanical fitter.
@@ChemicalOly I'm 16 do you have any advice on what to do right after college btw I want to do something to do with business and I don't want student debt
@@worrywirt I did an advanced diploma and NVQ3 in electro mechanical engineering
I really need to stop spending my maintenance loan on prostitutes and fifa coins
i felt that one , ouch
Well this is lovely news to hear while I’m doing my ucas application
move somewhere cool
Phoebe H unless you have to go just look at degree level apprenticeships if it worries you that much
Mood 😂😂
You'll be fine buddy, this video is kinda misleading. There isn't a student loan crisis, you only pay 9% of income over £25k, so if you're earning £26k a year, you pay £90 a year towards your loan, if you don't pay it off in 30 years, it's wiped. Also, it doesn't appear on your credit report, so it won't affect your ability to get loans and will only minorly affect your ability to get a mortgage.
But, the average graduate has a starting salary of £30k a year, compared to the average UK wage of £28k a year, that's a massive boost. Good luck with your studies and don't be disheartened!
At least you know before you go to university you will be ranking up interest whilst you're studying... I graduated last year and received my total debt letter early this year and to my surprise there was already £6k of interest in top! My other university friends didn't know this either! For me, university was absolutely worth going to despite the cost and added interest, but just make sure that the course you are going to be taking is based on something you're absolutely passionate about and can see yourself doing for the rest of your career! 😊
Tbh, since joining university I believe it’s the biggest waste of time I’ve ever embarked on. If you read this, get an apprenticeship! University should be just for partying and the degree is NOT worth it UNLESS you are in sciences.
Rahma Omar it’s incredibly expensive, very difficult but when it comes to maths, all of it is aha! Honestly, if you want a job in pure maths, university is required, maybe even masters. If you want a job not directly linked to maths, apprenticeship. There’s always diplomas!
@@CazmaRazz You can't get diplomas as a general practitioner, a lawyer, a psychologist, dentistry and many other jobs. If everyone followed your advice, millions of people would have nowhere to look to because there weren't enough of those qualified people.
Kristiana Wilson as I said, sciences and higher education required jobs, go uni. Anything else like humanities - uni is biggest waste of money and time ever.
Apprenticeships are unbelievably competative, do whats right for you.
I think you missed out on a case study here: Scotland has no tuition fees. We get loans to cover living costs over our 4 year courses, but the degree itself is free. We therefore have far less student debt, and aren’t tied into such a disastrous debt cycle as the English.
The only issue with this is having to go to a Scottish University t though. If your a highly gifted student your only real options are Edinburgh and Glasgow, along with certain subjects at Aberdeen, otherwise you are effectively forced to go to a university outside of Scotland due to your ability unless you wish to be taught at, what can be considered by many employers as 'the other universities' (generally not being Russell Group standard). With this, you are then put back right into the same boat as any English student and forced into paying extravagant amounts for tuition and living costs, hours away from family. Again, this is worse for NI students who are highly gifted as the only real option would Queens in Belfast.
Yeah and after Brexit we will see if that sticks around.
George Marston St Andrews has just been placed above Oxford...
WeeScottishLass I hope so. It would certainly be economically worse in the long run, but I could see the government deciding to cut degree funding with post-Brexit austerity :/
Goodbye Birmingham, hello Glassgow!
As someone who's got about £40k in student debt who's going into teaching, I feel this video hard
In England? I hope you realise that unless you end up making £60k a year, that you won't be paying that off and you won't be losing a noticeable amount of money to it each year. Student Loans are much more reasonable than people realise.
@@AdamDunebugDunas This is true. It's why I didn't feel too bad about getting the loans when I did. Still, knowing that I'll be paying thousands over the years to just pay down the interest of a debt that'll be over me for a good chunk of my life isn't comforting
@@JamesRoyceDawson I think if you want to feel more comfortable about it, think of it as a 30-year tax that's based on your income instead of a loan. If you're earning £26k a year, you're paying £90 a year in 'graduation tax' on your loan.
It'd be nice if a lot more people understood it, as it's not like any other loan in existence (it doesn't even appear on your credit report, so doesn't affect loans or credit cards.)
@@AdamDunebugDunas That's the problem. People assume that because they have been to Uni they will earn well. I know plenty of people over the years who have bragged about being Uni grads, while earning the same, or far less than me. So no, it isn't a tax based on income. It's a tax based on (usually) poor life choices, spending 3 / 4 years studying for a degree which 90% of recipients will then not use. Unless you're going to be a Doctor, Lawyer or Teacher (or any related profession) there really isn't much need in going to Uni and is usually much more affordable ways to end up in the same career.
Scott Robertson but it’s literally only 9% of how much you earn, a fucking iPhone on a contract cost more than that!
Meanwhile in Sweden: The interest rate for student loans are 0.16% during 2019. And remember, university is of course free of carge in Sweden, this is just a loan you can take to cover living costs if you don't want to work part time jobs while you study. Crazy system in the UK :(
It's not free in Sweden. Sweden's tax rates are incredibly high to pay for this "free" university, childcare etc
I pay 0% on my student loans in Finland. My rate dropped from slightly above 0% to exactly 0% because of the recent race cuts by the ECB.
@@danielwebb8402 Haha, yeah the classic "iT's aCTuAlLy NoT fReE" argument, cute
Fact is that everyone in Sweden with a job can survive on their salary and have a good life, despite these "incredibly high tax rates", so what's your point? I think most people would rather trade a little larger percentage of their income to never have to worry about getting bankrupt because they decided to get a degree, or have a child, or "decided" to get cancer (because sometimes it feels like you people believe it's a decision). It's pretty obvious that our system is better when not even the most right-wing parties in Sweden want to change it.
@@dondonnysson4973 That's awesome! :)
@@danielwebb8402 free at the point of use, obviously. nobody thinks that the education is just done out of thin air with no resources. clearly if it is a government program the government funds it the same way it funds everything, with taxes. and in the end the tax burden is less than the debt burden so it is a better way to do it.
As England, has to always differ from what the rest of the Europe does (power outlets/ driving side/ pound/ imperial) they had to follow American in the pursuit of University capitalism.
@@thomaseboland8701 I would not say it is the best because for example one big problem it has, is that is is not bidirectional, whereas EU's is.
It isn't the capitalism aspect at the core, that's just the Tory way of trying to solve all problems. The problem came in the 90s with the very socialist idea that everyone should be able to get a degree regardless of academic performance, pushing so many people into university that the cost became too much and setting us on this path, so now we have worthless degrees in pseudo academic subjects and not enough people with vocational or practical skills.. and of course the conservatives see it as an opportunity to make some money.
@@thomaseboland8701 Double insulated makes the EU power outlet the best of both worlds.
There is no safety issue in the whole of Europe with this outlet, so the point that a non-polarized outlet is inferior isn't true.
My pretty sure that you going to find many governmental differences between European countries as a whole.
Trump uni 2.0, we follow in the american way every time we get a conservative government. .. its no coincidence that Tory means thief
I just did the maths and had I gone to uni a decade ago I’d have less than 10% the debt that I will graduate with
You don't pay much of the debt anyway unless you're earning a lot more than £25k a year. And if you're earning a lot more than that, you can more than easily afford that much. The problem with Student Loans in England isn't the debt itself, it's that no one understands how it works.
@@AdamDunebugDunas hear hear :) Precisely so :)
And so it isn't debt per se, in the strict sense of the word, it's rather the potential debt that's conditional upon and linked to one's future income for a number of years. I would suggest that a fraction of one's salary as a means of repayment of one's student loan isn't significantly going to affect one's future standard of living.
@@AdamDunebugDunas The debt IS a problem, not individually but collectively because unpaid loans are just a way of kicking the can. Arguing that students don't have to repay their loans is a bogus argument because that debt still needs to be repaid eventually.
The government is hoping inflation eats away at this outstanding debt while wages grow, making it easier to pay back over time. However, this assumes wages outpace inflation which they haven't done (until this year) since 2008.
Using taxation to fund education ensures those who've already benefited from a university education subsidise current and future students, instead of shifting the burden onto future generations.
Also, the current system is a compromise brokered by the Lib Dems while in coalition. Given a free hand the Conservatives would've taken the privatisation of student debt further and will still do so, given the chance.
@@GonzoTehGreat The debt doesn't need to be repaid eventually as the government owns the debt, they've already paid the universities. The debt is only there to take as much money back from the students as possible and everything else is subsidized by the taxpayer.
Taxation already does fund education, that's how the money is paid in the first place, the loans are from a fully government owned company (Student Loans Company.)
The conservatives haven't said anything that remotely resembles touching the current system that has been around since New Labour. In fact, the loan system has meant that a more even percent of richer and poorer students can go to university compared to when it was free.
@@AdamDunebugDunas
The debt is ISSUED by the Govt but repaid by the students and whatever they don't repay is OWNED by taxpayers.
The loans are effectively a form of INDIRECT taxation (hence the term "Graduate Tax") when DIRECT taxation works just as well, if not better.
The Conservatives have their hands full with Brexit right now but have been financialising sector after sector since Thatcher. New Labour also adopted many of her policies. Switching from direct to indirect taxation and introducing student loans opens the door to further privatisation which has always been their agenda. It's not a coincidence that course fees have continued to increase even after the huge increase in 2010 and they will continue to do as long as they're in power.
The current scheme, which is a compromise, only exists because of the Lib Dems negotiating it while they were in coalition when the changes were made.
Universities should offer educational opportunities to all, not just the richest or poorest students. As usual the middle class, which represents the majority of students, is being ignored.
I went to university feeling unemployable with the expectation I would leave with a degree that meant I could apply for jobs as a graduate and that would mean something.
As it is I am stuck living back with family after 3 years of freedom, incredibly depressed and only able to get low level jobs I could have got at 16. I constantly apply for roles that should easily be graduate positions or early level (particularly given my volunteering and work placements in the field) and am told "since we see you are a recent graduate we do not believe you have the experience."
Employers want experience, not education. My degree feels not only utterly worthless but a massive negative which has dragged down any non-accountant or other-very-specific-courses student who fell for it.
What course did you get a degree in? If you don't mind me asking.
@@Mohammad-ho5sz English - because it is useful in every field to be a good communicator, and doesn't trap you in one career path
@@Genesis3Chi As you've discovered, you were not wrong - you can select supermarket work, coffee shop work, manual labour, call-centre staffing and the like. Your options are limitless! Thank The Lord you chose English!
I don't think a degree in English is worth the effort: most people want you to be focused in an area - the degree you chose was "too general" whenever I talk to employers: they want you to choose a focus - it's why my sisters thought English was a waste of time: no employers are seeking out English majors: if you want to be an admin you pick up a business degree, you want to be a caterer you do a course in culinary: people often around me say they want effective communicators but no-one went to university to be one. They pick a focus because at the end of the day they need work. You want to be effective at communicating at the workplace? You do seminars at work - not study a degree for 3 years.
Also @Jimsy I think your comment wasn't exactly helping: she was stating her degree was undervalued not that her options to low level jobs were limited. She clearly wanted a better job: most people her age are after those opportunities but the problem was what she chose to get a degree in. Usually those who get a degree in English do teaching because it's not a degree sought after.
As someone who is acutely aware that he'll never be able to pay off his debt, this was a fascinating video. I particularly found the part abut the old system being moderated by Durham and London interesting, as I read and have a Bachelors and Masters degree from Durham. It all feels a little ironic, and I also wonder how this will affect me now that I've moved to Germany and I'm no longer putting anything back into the UK economy, at least not directly through taxation. I always suspected it would be a huge debt bubble.
I thought it was still payed through tax no matter where you are, seems a bit of a logistical nightmare. I just assumed.
I know that US students get chased down for their debts.
@@mrmagoo-i2l I think US students have it even worse. At least the 9% repayment occurs above 25k income. That's not terrific, but you can live on 2 grand a month, especially if you marry and co-habit. Of course the problem is your savings will be non-existent, but that's it. US borrowers will on the other hand try to squeeze every penny back from you, no matter what, even if that means pushing you into poverty.
If I'm not mistaken, you are supposed to report your yearly earnings to an UK Embassy, and voluntarily pay off your student loan according to said earnings.
But in practice, they can't really enforce that in foreign countries, and most people don't even know they were supposed to do that, and just end up ridding off the 25 (now 30) years until their debt gets written off.
Idolator ... that was my understanding as well. I know several graduates who have left to work abroad partly to avoid repaying their student debts. What a perverse incentive this stupid system has created.
If you want to be able to move back to UK for good in the next 20-30 years I suggest you do the right thing and pay off your debt as you would pay back a normal commercial bank.
Extortionate interest, yes. But remember that money you don't pay will have to go out of places like NHS i.e. not paying is not really victimless.
Anyway that is my view but what do we eastern europeans know?
"Up in the morning and out to school
Mother says there'll be no work next year
Qualifications, once the Golden Rule
Are now just pieces of paper"
Billy Bragg wrote that in the 80's and now its more true than ever.
The bubbles gonna pop in 10-20 years when loans start getting wiped.
Never trust Congress with your money problems
You wish
It's not really a debt. It's more of a graduate tax
As someone who takes calls for Student Finance England*, I concur with just about everything said in this video. The problem is with the education system in general. People are not getting smarter. They are getting better at completing specific tests which makes it look like people are getting smarter, but the reality is that a lot of young people never learn common sense or important life skills like filling in a form (when they haven't been given all the answers in advance). Heck just this week I've had 2 callers asking about progress on their application, when they haven't submitted one, and another who had no idea what a (household) bill was - and these people are our future!
While maybe not relevant now, one bit of advice for any students applying for finance, get the application in early, we generally recommend May for new students and June for returning students, but the earlier the better. Too many people wait until after they get A-level results or even September and get burned as a result (we will not fast-track an application just because you started your course already).
* Before anyone asks, this is my own personal opinion and does not necessarily reflect the opinion of SFE or any other part of the Student Loans Company (SLC)
I'm waiting tables after graduating. Feels good man.
It sound like bank bail out of 2008 waiting to happen alover again.
Ahh yes, the last ticking time bomb the baby boomers have left us. Good stuff.
Most tuition fees in Scotland are paid by the Scottish Awards Agency for Scotland (SAAS), not the students themselves.
So in 30+ year's time, a whole bunch of graduates are gonna stop paying off their loan, but be landed with a higher tax bill?
No, this is so badly explained it's terrible. Student loans are more like a graduation tax, the loans themselves are owned by the Student Loan Company which is publically owned, people who get successful careers pay back into the system while people that don't aren't burdened with huge loans.
@@AdamDunebugDunas So if after 30 years the loans get wiped off why is everyone so nervous about being x amount in "debt"? Its more of an additional tax which only really applies for those who get successful careers.
Something relating to this, which I feel isn’t talked about enough, is how the mass expansion of further education and the introduction of student loans in England, occurred alongside the sudden and rapid increase in property prices throughout most parts of Britain.
All these new students needed somewhere to live, so property ownership suddenly became much, much more lucrative. You could say that having students as tenants is a reasonably safe bet, as their student loans mean they’re unlikely to miss rent payments.
So, you’ve got millions of young people getting burdened with obscene levels of debt all whilst actively contributing to a property market which is going to be virtually inaccessible to them, creating additional financial difficulties for them in later life when their only option is to pay rent, rather than own property and achieve a greater degree of financial independence.
This has all been very profitable for some people but a complete and utter disaster for most. Most of the losers here have been scammed big time. And to think, this was all started by a Labour government.
Ilovebrownbreadtoast did you watch the video? Or anti-labour bias too strong with this one?
Starts under Major, and the financialisation of the university started much earlier.
no nah Regardless of where it all started, it all culminated under a government which at the time was vastly dominated by the Labour party.
In fact, since that government were in power, no future government has ever had a majority like the 1997 Labour government did.
I think it’s fair to say that, if they wanted to put a stop to it, they most certainly could have done.
But they didn’t and I presume they justified it all by claiming that it would improve social mobility and all the usual bollocks.
So sorry for insulting your precious Labour party. Just remember, it isn’t a bias if you’re making a fair assessment of the situation.
Ilovebrownbreadtoast 😂
All very good my man.
But you should maybe watch the video again. No one reading this, including me, is convinced at all.
If you're looking to make the blame game though, why don't you look at Majors policy, Cameron's £9000 hike, and THEN come and talk to about how NEW labour (a centrist party) did all those nasty things.
Which I agree, were shitty.
Then sir, if the finiancilisatuon of the university does upset you you like it does me. Then go and take a look at the current labour parties policy eh? An actual left party.
Right wingers and neoliberal killed the university.
@@nonah60 ok boomer
I'd like to point out that IQ tests are constantly restandardized so that a score of 100 will always be considered average. Since the equivalent IQ of people has been rising, they have been lowering the scores through various means so 100 is still the average IQ.
How intriguing. That must mean that my IQ has dropped over the last 40 years even if I got a little smarter! How reassuring. Excuse me while I feed my fish, Dunning and Kruger.
I don’t know about that, I’ve seen some GCSE style papers from the 70s.
They are a lot harder.
True. The Flynn effect is around 3% per decade.
So maybe we have got 9% smarter in 30 years. But not 2000%!
A first should mean "genius". When an employer sees a first class degree they should assume you are a genius. If we are now giving them to 20% of students, so 10% of people, then that clearly isn't the case.
"Slightly cleverer than random person" (IQ 104, top 40%) shouldn't = 2:1. That is useless to an employer and lying to the students.
@@danielwebb8402 "A first should mean 'genius'" because?Anything other than , you have a feeling about it?
@@JesusJuenger because if I was a high end employer I'd want to be able to identify the tippy top.
If a first is not unusual then what does it even mean? How do you identify the best?
Prizes for all and grade inflation isn't helpful to anyone, except the self-esteem of average people. And only then until they hit the real world and are surprised they can't walk into a job.
I work pretty high up in insurance. We wouldn't even interview someone with a 2-1. As there are enough people with firsts that aren't even competent enough.
How about a video about private and public high schools? There seems to be a big difference between private and public high schools in the UK. I recall no big differences between ours. Heard a private high school founded by Samsung got escalators...but if there was a big difference it was school lunch and dinner quality.
True. I am clueless with their Education system.
There is a huge gap in quality between public and private schools here in the uk. Private schools are better funded and because of this they produce a lot more senior politicians,top judges, lawyers, diplomats and other high ranking officials. Though this could change because labour have changed their policy to scrap private schools and improve public schools so that more working class people can hold top jobs again.
Great idea but I think it would need splitting between the public sector schools, private schools and what are known as 'public schools' which are in fact elite private schools.
Sorry to be that guy but I think you mean state schools and public schools
A Liberal Biochemist Why do you people call your private schools public schools? That one confuses me over on this side of the pond way more than any other dialectical difference.
There's a pretty obvious alternative explanation for how grades could have risen without either students getting smarter or academic standards having declined: students nowadays have the internet (and various other learning resources that were not there in the past). I'm not sure how exactly it works out for Arts courses, but for science courses, as far as I can tell what used to happen is that if you couldn't understand your lecturer's explanation of any given concept, or understand what was in the textbook in the college library, that was it, you sunk. Whereas nowadays you can go online and find hundreds of different explanations of pretty much any concept, along with example problems to practice on. Given this, it would seem extremely strange to me if grades WEREN'T rising, even if the students nowadays have identical intelligence to people from the past.
Thinking about it more, even if grade inflation is real, surely it can't affect how many high paying jobs there are in the first place? It might be frustrating on an individual level if you are someone who would have gotten a first even with higher standards in place, and now you have a degree with the same number on it as someone less academically talented. But the same number of high paying jobs would exist regardless of how many people have 1sts (the amount of work companies need done does not change due to the accuracy level of degree qualifications, that just does not make sense). Firsts being easier to get might make it a bit more random who exactly gets those top jobs, but regardless of who gets them, there remains exactly the same number of people with student debt they need to pay off and an insufficient amount of pay to do so.
To put it a simpler way: there are a set of students who need well paying jobs to pay off their student loans, and there are a certain number of jobs that pay well enough to do so. The number of such jobs available must be lower than the students with degrees, otherwise we would not be talking about any of this. It does not matter how well or badly the ranking system for the students works, there will still be the same number of students with insufficiently well paying jobs to pay off their loans, just different specific individuals in the "well paid" and "not well paid" categories. So all in all, I can't see why grade inflation would play any role in the problems ex-students are currently facing with loan debt .
Exactly.
This would have been a perfect video without that segment. It sounded too much like Daily Mail propaganda. We also have a recent case study that dismisses the "standards dropping" hypothesis: GCSEs. The Government recently and quite deliberately made GCSEs harder. There were many, many complaints by schools and headteachers that the material was not suitable for students at that age. There was an expectation that grades would fall but what really happened? Grades rose. All that happened is that students anticipated the material would be harder and so dedicated much more effort to studying the material. Britain is one of the few countries in the world that seems to express glee at students failing and excitement when they fail. It is hard to explain this mentality to those from other countries. This would have been an authoritative video without that garbage segment in it.
@@babatundeonabajo Yeah grades rose because the exam board arbitrarily decides what % of people get each grade.
@@black1blade74 : Exam boundaries have pretty much always been adjusted to account for varying difficulties in papers across years. The point is, despite the Government deliberately and quite openly making the exams more difficult, grades still rose. It's only in Britain where grades falling is seen as a good thing. We really need to accept the fact that a plausible reason why grades have risen is because 1) there are more materials available now than ever before and 2) students study harder now than in the past. There is a very rational reason for 2). Unlike in the past where you could leave school with no qualifications and still make a career for yourself (even in the City of London) nowadays you are royally screwed if you mess up your exams. The stakes are high and students know this.
@@babatundeonabajo yeah they just examine the distribution of marks and decide the cut off. This is fair under the assumption that people are of similar ability each year so an A* one year should be worth the same as an A* the next. The fact that grade inflation still occured after the GCSEs were made harder just means that the exam boards are deliberately facilitating grade inflation because exam boards are a market for schools.
Going back to main topic, I think the system from the 70s where Durham, london unis and Oxbridge would calibrate exams for other universities. A problem rn is that going to a better university with higher standards is that you've objectively made a terrible choice if you get a 2.2 because you could have easily got a 2.1 at a slightly less academically rigourous institution.
Both New Labour and the Tories have been pursuing a misguided Thaterchite inspired Financialisation of the economy, including previously publicly funded areas, such as Education, Healthcare and even Defence.
The growing Student Debt Crisis is just one of several problems on the horizon ensuring the UK is destined for a 21st century of stagnation rather then progress.
Parliamentary reform is desperately needed to replace the idealogues running the major political parties with competent leaders who prioritise the interests of their citizens instead of subverting government to line their own pockets.
Government intervention is Thatcherite?! What?!
Remember when watching TL;DR news was quicker than reading the news literally anywhere else?
I've tried explaining these issues to people many times, particularly the bill waiting for the government after 30 years. It's a ticking time bomb. Remember when Corbyn said we should wipe student debt now and everyone said "where does the money come from"? That question should really be reversed... where is the money coming from to pay it off plus 30 years of extortionate interest rates?
I presume those that put this system in place in its different stages didn't care because they knew the negative consequences would fall on a different government
The same place the money came from to pay for the napoleon war debt
I had a great time at uni. Hardly studied at all but partied every week and played a lot of video games. Got a massive load of debt and have paid back less than £1000 of it in the last 20 years. I am currently self teaching, and aim to have a well paid job in 5 years, so I can still make good money but also avoid paying back my student loan. Thank you tax payers, you also paid for my 4 year long party x
Legend loool
Sorry to point this out but you have a tendency to put out these videos on "U.K." issues which are actually "England" issues, ignoring that things in other parts of the U.K. can be quite different.
For example, my Sister just started Uni in Northern Ireland, and for a start her interest rate is only 1.75% on Tuition Loans. Looking back at previous years the highest it's gone is 4.8% way back in 2007, while in 2009 it was actually 0%! Also, they didn't replace Maintainance Grants with Maintainance Loans, they offer both. My sis turned down the Loan, but was entitled to the Grant, which is great because it's worth about the same but doesn't have to be repaid.
This could be seen as both better and/or worse than your own situation, but it's undeniably a very different one, which is my point.
(Also, it's "Fewer People Going To University" at 7:58. Sorry, couldn't help it.)
Yeah but the tax system is UK-wide. That means even if the problem is only in England and Wales, taxpayers across the country will have to pay to solve it.
I was thinking about going to uni in the early to mid 2000's and already had older friends coming out with degrees that proved to be useless. This tipped my decision making in favour of not going. That and general career indecision.
Student loans. Legal loan sharking in both the US and UK
In US sure, in the UK not at all. It's just a graduate tax... its not like a normal loan where there are reprecussions to never paying it off.
Difference is that you will not be killed, or atleast physically (not sure mentally)
Yes. Not to mention that it will probably prevent you from buying a house....and by the time you're 52 when it stops you'll probably be unemployed anyway and as the Tories will have removed healthcare and benefits from your reach, it won't worry you for too long as life expectancy will fit neatly with your age profile.
@@BrianMcGuirkBMG I mean houses are expensive as fuck anyway and bad investments. . .
I much prefer to rent and be flexible with moving house for my career and want to see the world so why the fuck would I want to own a house you know? To show off to people how I am going to have to pay to fix my heating whilst at the same time paying the bank money for a mortgage? Nah not for me :P
I prefer the old fashion way . 😆
Here in Scotland, where Scottish students don’t pay any tuition fees, instead the Scottish Government covers that cost. However it’s not an incentive for those universities to take in more students, because the amount of money they get per student doesn’t actually cover the cost of that student, international and (to an extent) students from the rest of the UK, along with research grants, subside that cost. In fact it actually seems to encourage higher academic standards because universities are encouraged to become more research intensive, as that’s where the money really is.
The education system here in Scotland is also completely different in general.
Love how it’s like £40k of student debt in England but only like £4K of student debt in Scotland.
Just shows how Scotland’s better
its not better, you just get a higher amount of money sent from London per person, and your government is not having to subsidise migrants as much
@@utubeape Something tells me you are a Leave voter.
@@jimsy5530Yes, I am a leave voter, but more for the fact that the EU is a shady organisation, they make too many rules and we do not get value for money not because of migrants, this is a topic the remainers have brought to the forefront of the debate because they do not want the focus to be on the organisation of the EU , however on the subect, if migrants were good for the economy, then we would have been importing as many as possible when we had a manufacturing industry in the 1960's, there were plenty of wars back then so there were migrants travelling
One of the most ridiculous parts is that the government "helps" the poorest students by loaning more money to them in the maintenance loan which means they have to pay back way more
Another issue is that slightly middle class students basically have no money to live on whatsoever. My maintenance loan doesn't even cover my rent
This is so stupid! They would've saved money if they just paid the fees at the beginning.
I hate this system it is so stupid!!!
I paid my Postgraduate UK student loan (3000 pounds) within 3 years of graduating (2009-2012).
I was a EU citizen and stayed on in the UK workforce, slaving in horrible working conditions, to make the payments. A lot of my fellow EU students just disappeared back to their countries without paying back anything; and were never worried about anything.
Debt is a state of mind, nothing to do with finance or economy.
One extra detail I would include in this whole scenario is the pressure put on schools to rank well in tables. The schools then dangle the university carrot, including all the questionable benefits, to pressure their students and so on.
- Schools encourage students to go to uni without thought about quality of uni or course because it looks good for the school.
- Many parents encourage kids to go because they don't realise degrees have depreciated and think it will lead them into a high paying job.
- Many kids look at personal interests or dream jobs instead of jobs which are achievable / in demand because they don't have the knowledge of the labour market. They also don't appreciate how the loans work or the impact on wider society.
- Young adults come out of the safe bubble of uni with debt, a lack of direction and then get chastised for making a stupid decision years ago. Then to top it off see that they've contributed to a debt bomb for themselves and future generations.
Never paid any of my student loan. As I've decided to set up my own business, and don't pay myself through PAYE. Therefore.. no student loan tax for me :)
Isn't that illegal?
@@Damo2690 no loool. People jusy aren't as intelligent as they used to be. Dom seems to be among a dying breed.
@@hxzzza8353 I mean choosing not to pay back a loan sounds like bad advice
In Wales you get a maintenance grant based on household income, above £55K, you get £1K per year and you get more the lower it is. When household income is £18K or lower, you get the whole £9K. This applies to unis outside of Wales and those studying in London get larger grants. A few years ago, Wales would just pay around 66% of your tuition fees (So you end up paying around £3K per year), this applied to unis all over the UK.
I feel like the education system has really forced my hand into joining a university, really wish i would've gone with the apprenticeship route it seems like the way better option
One of the greatest videos on your channel.
Terribly misleading...
@@AdamDunebugDunas Because in truth the quality of the video is bad by comparison, or because the information in the video is false?
@@Thegameshadow1 University is effectively free in the UK, but those in the UK that go to university and are successful (earning above £25k a year) pay money towards their 'loan.'
If you earn the average UK wage of £28k a year for example you'll pay £270 a year for up to 30 years, after which the loan will be written off. The loans are better described as a graduate tax and the loans are owed to the government-owned Student Loans Company. The taxpayer pays for the cost of uni straight away, this system just serves as a way to recoup costs from students who do well for themselves. It's a best of both worlds system that is woefully under-explained to people and videos like this do it a huge dis-service.
@@AdamDunebugDunas Thank you for your swift reply. I thought it was a rather nice video, but most likely because I don't exactly know how it works and I was never bother to research it on a bigger scale. Where did you take this information from?
This video hit me hard. I entered into university aiming to go the whole way and be a historian or become a government worker, a civil servant. I’ve just completed my masters degree and had that whole plan destroyed. The debt is so crushing that I’ve realised no matter what job I take I am screwed over. I wanted to do some good in the world, but it just doesn’t seem feasible as no government job will take me without a different arbitrary qualification I didn’t gain at my university. My degree feels pointless and to some extent, I wish I had just done an apprenticeship instead, at least then I feel as if my education may have meant something. I may have already gained my dream job. As it stands I feel like I’m an uphill battle where no matter what I will have to go into an apprenticeship after going to uni for 4 years, or pay for a course to get this qualification. When I went in I was told I could get a government job with my degree, now I’m aware that was a lie. It was just something to get me to sign on as a student. I regret it deeply.
Just remember you don't start paying it back until you earn over the threshold £25,000, so don't worry too much. Then it expires after 30 years. So depending on how much you earn depends how much you pay back.
1. Student loans should be seen as a tax not a loan 83% of people pay it off. 2. Too many people go to university doing pointless degrees , in yoda studies or business studies my cat could pass . Universities used to be for the top academics with others going to apprenticeship etc . These day everyone leaves school with As and has a degree (they are no smarter than the past) so there is no way of telling if a job seeker is excellent or poor the entire education system is completely flawed .
4:36 a lawyer will be paying less student load than a teacher?! this just confirms the saying "the rich get richer and the poor get poorer"
No they just earn more money. Nothing to do with the rich getting richer
It's simple: Choose a degree in a field that requires a degree and that society actually values (that isn't oversaturated).
The issue is a lot of people choose degrees that don't lead to lucrative careers (art, coding, journalism, English, gender studies, counselling, political science).
The simple fact is: the best way to make the most of your degree is to choose a field society values more (not necessarily at the low end but has a high upper ceiling) such as science (particularly biology, and forensics), social science, medical fields (doctor (human and veterinary) psychologist, radiographer, pharmacist, surgeon, GP etc), choose subjects society value highly and in the case of medical fields, cannot do without.
Coding is a useless degree? If we're actually talking about computer science then I don't know what world you're living in mate
@@matthewwatt2295 Coding is not a useless degree. It is however an oversaturated industry (the supply outweighs the demand) and thus is far lower coveted and paid than less saturated industries.
I'm talking standard programming. software.
More specialised areas such as AI will of course be better paid as it is a less common and far more complex specialisation.
This is already outdated - ONS have just finalised a new treatment of student loans and how it counts towards public sector net borrowing - gov have to account for debt now, not in future. And this also glosses over a huge improvement in teaching standards - lecturers now expected to have teaching qualifications, so that's obviously going to have a positive impact on student achievement
yeah but not so massive that the number of 2.1/firsts has doubled.
@@black1blade74 I agree, not across the sector - but sector-wide analysis always underplays the big differences between individual institutions. It's not even as simple as talking just about universities. So there are loads of drivers for the shift in grading and looking at it at such a broad level doesn't really do that justice.
@@JamesBluring On an individual basis for an employee or prospective employee, it doesn't matter that sector-wide analysis ignores certain details, because employers do the same. No HR bod is going to spend time sorting out whether a certain university uprates their degrees. They'll go through 200 grad-position applications an afternoon, bin the ones with out a 2.1+, and be out the door at 4.30.
I think it’s important to remember that student loans have no affect on your credit score and will eventually be written off so on an individual level it doesn’t feel like regular debt. I graduated 6 years ago and have never earned enough to pay any back. The £15k earnings figure quoted in the video has adjusted over time, I’d currently have to earn over £1500 a month according to the gov website before I’d have to pay any back. I have a mortgage and a very high credit score regardless of the £20k+ I technically owe... it doesn’t feel real! I get a letter once a year reminding me how much I owe and it goes into a drawer forgotten about for another year. I wouldn’t let the cost put anyone off going to uni in the first place.
There are few diplomas really worth getting into debt for.
Also around @4:00 why would you take a loan if you can pay if off immediately ? Rich people don't take those kinds of loans to start with.
You take the loan because it gives you additional capital for 3-4 years without any interest being charged. So if you stick 50k into a high-interest bank account, live off your loans while you study, and then close out the bank account to pay off your loan, you'll have made a profit. Of course, with the actual loan amount being partially means tested, it'll be closer to 40k than 50k, and even a high-interest bank account isn't going to be the best way of getting a return on investment, but it gives the basic idea.
@@adamc4951 My apology, that's changed since I studied (or at least when I studied, the interest rate was significantly lower than you'd get from a bank).
The general point still holds - so long as you can invest the money at a higher rate of return than the loan interest, you profit from taking the loan.
Just means the rich (politicians) stay rich whilst the poor stay as wage slaves.
You're not supposed to pay it off. It's a tax in disguise.
When the UK starts talking about the problems with the student loan system, the US just leaves the room
Yes but don't forget, prior to student loan only about 20% of school leavers went to university. Blair came up with a clever scheme to drastically reduce youth unemployment by stating that 50% of youth will go on to higher education. The problem now is that half of the degrees are worthless in the workplace and the graduate is stuck with a debt and would have been better not having attended. I have many times as an employer been shocked when a job applicant with a degree is severely lacking in basic literacy and communication skills.
I feel a-bit disappointed and misinformed, I’ve encouraged my daughters to go to uni because she loves to learn, I for one didn’t go enough in to student loans and it really means. Thanks for information ℹ️ now I feel its my fault for having that debt.
Especially if she went to a pretend 'university', not an actual Red Brick or Oxbridge. Still, you can visit her every day and chat about it when she's working at Costa post-graduation.
Think of loans as a graduate tax, it is unlikely she will pay them off but they will be wiped after 30 years, if she wants to learn then there really is no other place to do it. You certainly shouldn't feel any guilt by encouraging your child to pursue more education.
Thank you so much for this video and all the other ones. Thank you for bringing us the information which otherwise would remain unseen.
Imagine my face when he said there was an average of 50k debt, when my financial guide tells me to expect 100k debt by the end of my course 😫😫
Take heart. Maybe that means you are well above average. Congratulations. :)
Rory Allen that’s med/dent/vet/PhD for ya
Sounds like you'll be perfectly fine if you're in the UK, the repayment scheme is like a progressive tax where you only pay 9% over £25k. The average wage in the UK is £25k and if you're earning a load over that amount you'll likely be doing pretty well for yourself anyway. Earning £26k a year would mean a Student Loan bill of £90 a year.
I got a 2.1 Masters degree in Electrical Engineering and its absolutely worthless. Ive applied to over 150 jobs and only 2 ever lead to an offer. Ive been laughed at for asking more than minimum wage and my first proper graduate job was £18k, I was repaying £1 per month of my student loan while the interest adds over £500 per year
It's really shocking just how unaware of most of this I was, and I finished my undergraduate degree 4 years ago now. No one explained just how much the interest actually was (0.6% and 6% are just numbers to a 17 year old).
I'm not even really mad at the government because I fully expect them to treat young people like shit, but why isn't this information explained to people simply and often in the media? I know why now. It's because this system is so God awful that to present the reality of it would be 'bias', which can't be allowed.
I would disagree that degrees are worth less because there are more universities based of Jon majors scheme, but more of the fact that experienced based jobs demonstrate a more practical value than the thousands of students picking pointless niche degree specialisation.
Im glad Scotland has free uni
You explained this SO much better than the students I spoke with in Cardiff did. Thanks Jack!
It’s apparent that nobody in this thread (including TLDR News) understands how UK student loans work.
lukedeacon I’m based in US and would like to actually learn about it. Who explains it well?
They should just scrap all tuition fees and student loans, replace them with "free" high education and student grants. Then that can be paid for with a graduate tax. It would streamline the whole system and would probably cut back on bureaucracy as well.
You reckon taxpayers will be content sending low achievers to former polys to study media on their dime?
I enjoy watching these videos, but it would be nice to have some sources for the claims you make, rather than just taking your word for it.
And offer solutions not just stating the problem
@@BreadWinner330 How is he supposed to do that ? He's not a policymaker.
While TLDR's videos are usually pretty good quality, this one massively suffers from a poor understanding of the Student Loan System and how repayment works.. and how this system is actually massively more successful compared to the previous free system as it allows much less money to be owed by the average tax payer which is instead paid as a 'graduation tax' by the graduates themselves in the form of these government-owned 'loans.'
I graduated with £35000 in education loan which had about 11% interest rate. I paid all of it within 2 years. Sounds crazy but it is possible. If you’re thinking that I had to sacrifice lot of things, you’re wrong. I took two foreign trips, bought a four wheel drive car (not on loan, paid full cash), the latest iPhone, iPad Pro, MacBook Pro, GoPro, and more. The key is to save, cut unnecessary spending, don’t use credit cards unless you’re in an emergency. All the best to everyone with lot of debt.
Wait, did you go to Loughborough? Were you in Elvyn Richards?
People used to finish degrees without debt and everyone used to afford a house, family and children. Huh. What changed?
They started charging money to get higher education.... if you have debt it's a tougher decision to make even more debt to get a house.... or even to go for a longer degree like Law or Medicine which have very stable work which makes banks more likely to give you cheaper/longer loans...
now Maybe Billy from Liverpool who wanted to become a lawyer has to think twice about it because he can't afford it... and even if he does for the next 10 years he has to pay it off and maybe then he can get a house and wife if he isn't depressed from the stress of a student loan
@@LoFiAxolotl So "they" used to provide higher education for free? It was nice of all those institutions and educators to work for free. I wonder how they afforded their houses and families.
@@ChristieNel Free higher education usually refers to a system where the universities are tax funded... obviously you're either not getting that or you're trying to be dismissive through sarcasm which both make you look extremely stupid
@@LoFiAxolotl I'm trying to get people to ask questions.
5:50 I'd like to point out the Flynn effect for IQ where younger generations outperform older generations. IQ test are adjusted for this every so often as the average population IQ by definition is 100.
and.....our parents got free education and it was much more affordable and easier to get on the property ladder and their wages multiplied over their working lives. We paid massive student fees, house prices are ridiculous and wages aren't moving.
Might wanna exploit tf out of Germany's tuition-free higher education system for everyone worldwide at the cost of monstrous taxes, which you're ain't gonna be subject to if you leave after graduation
Glad to see you guys read my comment on the previous uni fees video and raised my points ten levels higher in this video. Hopefully at minimum it educates future potential students so they can make a more informed decision.
Computer Scientist in the making here, at least I'm on the better side of graduate positions lol
@DF AMO from what I've read, everyone other than ppl in the financial sector is extremely underpaid in the UK, even engineers and doctors
Not necessarily. The degree w/ the highest unemployment is comp sci.
@@babatundeonabajo if you count working as a barman after a history degree "employment" then sure 😂😂 we all know computer science is the most employable degree
You've got to think about if you're on a higher income but not sky high you might end up paying an absolute fortune due to only paying 9% over 27k.
I was too in CS and in my country, you are paid to go to uni (you can take out loan too), but realized it was waste of time since I could just get employed straight away which I did.
Extraordinarily informative. Thanks for compiling this. I love the depth and detail.
But unfortunately very misleading. There's no crisis, the loans are all owed to a government-owned company, so the interest doesn't have to be paid back by them to sort it out. As for the students, there's no crisis as they're not proper loans, they're paid back like an income tax of 9% over £25k, meaning if you earn £28k a year (the national average income) you pay back £270 a year. If you don't pay off the entire loan in 30 years, then it's wiped off (remember the loans are entirely owned by the government.)
This means that the system is paid by the students, but for those that can't afford it, subsidized by the tax payer, it's the best of both worlds. Successful students pay it back, less fortunate students have it covered by the tax payer.
So u tell me even though the cost of a degree went crazy high expensive comparing to old degrees, the actual value went way down 🥴
The most frustrating thing is that this future debt mountain was so blindingly obvious when tuition fees were introduced, but it never went through proper scrutiny. If 15 year old me could see the problem, why couldn't anyone else, especially when politicians espousing the loans system positively boasted that the majority of students wouldn't pay their full loan. Its an absolute scandal and I'm sure is making some people stinking rich
So this video is great, but there is one aspect that is missing: wages. The UK wages are incredibly low which has been compounded by austerity measures post 08 crash. Wages need to increase. The 7.5 minimum is appalling. Most people with degrees wont see 60000 and is worse if you are employed under the NHS.
Germany pays Euro 139.2 billions for Education( 4,1 % of GDP) in 2019, The UK: £89.4 billion (4,2% of the UK GDP),also 2019, why is the tuition fee in the UK still so high? In Germany it'is basically for free. I have to pay back up to 10.000 Euro after my graduation this month. My loan is at around 45000 Euro.
I paid off my mortgage by 28.
I deliberately avoided uni. People will look back at this era and think students were crazy to get in £40k debt with no guarantee!
Sam N It’s great we’re in agreement. How old are you?
Part of the problem is that not only are degrees just basically a given for people to have now, but also the choice of degree topic is questionable
When I went to uni, over 75% of the students in my year took degrees in physiology and psychology.
So large numbers of students are creating huge debts but ending up with degrees that don't actually offer any benefit to their career
"what does this actually mean" means I ain't going to uni
Smart decision
Good video thanks for making this I'll never be a student but I have a nephew and nieces who might so your video makes this very interesting indeed!
To anyone considering uni I would think twice before just walking on any course and handing over these thieves money. Its never highlighted the courses with the jobs at the end of course there's plenty of courses I don't know how there operating that when you graduate no jobs at end so pointless really. Make sure you do your research on a course that actually has jobs!
They're not thieves haha. One problem is industry and the recruitment agencies which put out jobs that need extensive experience or it is a low paid job. So then it is no surprise that taxpayers end up paying it because they're too dumb to actually help graduates get to pay them back. It is the system not Universities and yes it should be a tax because currently wealthy families who pay out of pocket mean the graduate has no debt to pay interest or any repayments whilst middle income graduates and those with high income families from not rich families end up paying the most overall.
@@anthonychurch1567 Either way it should be sorted out. Such as many problems with the UK. What I don't get is why have courses with no bloody jobs at end of the course? Should be more highlighted when joining the course but no they say there's plenty of jobs.
Currently sat in my uni halls doing work while watching this - I feel great
Graduated in 2014 with a 1st in History, never been earning enough to pay it back, currently sitting at £27,000 XD Probably never gonna earn enough to start paying it back ayyyy
Same boat here to be honest
@Russell Hobbs I attended 3 different universities in the UK for my degrees and I can quite confidently say that the history grads did very well for themselves. Amongst them are venture capitalists, consultants, hedge-fund managers, editors, headteachers, and many more. I must admit though, that the 3 universities all ranked within the top 3 for the degree itself which must've skewed the representation quite a bit. Even within the universities, the history students were very well represented and respected, with 3 consecutive history students being elected as president of the union during my time. Many also became presidents of their JCR/MCR and/or Senior Man/Woman.
@Russell Hobbs not necessarily. What people often forget that what a tertiary education provides is not limited to knowledege in the field you're studying, but also with skills vital to many other aspects of life such as critical thinking, how to research a topic efficently, how to present the results of said research in a proper manner, and more.
@Russell Hobbs Really? Your first employer is going to teach you how to do a litterature study? How to interpret and apply academic tests and then how to communicate this on a academic level? Just what kind of first job do you think most people get?
@@user-kb8rc5vq2i If those things are required, then yes. The employer would give training and learning on the job. Rather than just being a mental masturbation exercise of no use in real life but you then blame others you wasted 3 years doing it.
Excellent summary! Thank you.
You should really do one for horrendous system in the US. Talk about broken? Holy smokes.
Students in the US owe over one trillion dollars in debt. It’s a catastrophe.
Adjusting for population size, that's 200 Billion USD (the US population is ~5 times larger), and adjusting for the exchange rate, that's actually pretty much identical to the UK's 140 Billion GBP.
As someone who finished university fourteen years ago, I have obsessive dreams about winning the lottery on my graduation day so I wouldn't be stuck in a crap job for the rest of my life, despite my university qualification. Universities are a CON.