Rajshekar Manoharan’s Post

Any University Graduates in UK wondering why they should be engaged by politics and by policy need only look to the topic of Student Loans in this election year. It encapsulates everything that is wrong in fudging and under-investing and kicking cans down the road... and it is hitting them in their disposable incomes. There is much to this topic, and I get that it is complicated, but the problems have got deeper and broader and have not achieved the published policy aims... How do we fix this topic? #studentloans #educationpolicy #highereducation #studentfinance

👉 Typical before-election act to win back some popularity, but they forgot to pay back the 4-7% interest the student loan holders could have saved by putting into saving and/or offset accounts: 👉 This meant the average university debt will shrink by $1200 in cost of living relief. Crippling student debts will be slashed for more than three million Australians as the Albanese Government moves to shield young people from more huge hikes amid the cost-of-living crisis by backdating changes to student loan schemes. HECS debt indexation to 'wipe out what happened last year' #AUbudgetNews #studentLoan #HELPFee #HECSdebts #CostOfLiving #AUNews #offsetAccount

Wondering when your UK student loan gets written off? For those who are navigating the world of student finance, understanding when your loans are written off can be a bit tricky. Here's a brief overview for students across the UK - England, Scotland, Wales, and Northern Ireland. In England, student loans are written off 30 years after the April you were first due to repay. For those in Scotland, the timeframe shortens to 30 years after the April you're first due to repay, meaning your balance will be cleared sooner. Welsh loans follow the same 30-year repayment rule as England, whereas Northern Irish students will see their loans written off 25 years after the April you were first due to repay. Student loans in the UK are based on your income and are often paid in instalments. Maintenance loans, for instance, are means-tested and usually go directly to your bank account. Tuition fees are paid directly to your university or education provider. If you're getting ready to go to university, you'll need to ensure you register at your institution to start receiving payments. In England, Wales, and Northern Ireland, maintenance loans are paid at the start of each term, whereas in Scotland, they are paid monthly. Not applied for your loan yet? There's still time. Applications are accepted up to nine months after the start of the academic year for your course. For more advice or to discuss your options, visit rikama-education.com or drop a comment below! #StudentFinance #UKEducation #StudentLoans

Wondering when your UK student loan gets written off? For those who are navigating the world of student finance, understanding when your loans are written off can be a bit tricky. Here's a brief overview for students across the UK - England, Scotland, Wales, and Northern Ireland. In England, student loans are written off 30 years after the April you were first due to repay. For those in Scotland, the timeframe shortens to 30 years after the April you're first due to repay, meaning your balance will be cleared sooner. Welsh loans follow the same 30-year repayment rule as England, whereas Northern Irish students will see their loans written off 25 years after the April you were first due to repay. Student loans in the UK are based on your income and are often paid in instalments. Maintenance loans, for instance, are means-tested and usually go directly to your bank account. Tuition fees are paid directly to your university or education provider. If you're getting ready to go to university, you'll need to ensure you register at your institution to start receiving payments. In England, Wales, and Northern Ireland, maintenance loans are paid at the start of each term, whereas in Scotland, they are paid monthly. Not applied for your loan yet? There's still time. Applications are accepted up to nine months after the start of the academic year for your course. For more advice or to discuss your options, visit rikama-education.com or drop a comment below! #StudentFinance #UKEducation #StudentLoans

📢 Last night, the Albanese Government passed legislation that will wipe $3 billion in student debt for over 3 million Australians.   Here’s a breakdown of what’s changing:   - HELP debts will now be capped at the lower of CPI or WPI, with changes backdated to June 1, 2023.   - Last year’s high indexation rate of 7.1% will be reduced to 3.2%, and this year’s rate of 4.7% will drop to 4.0%.   - If you’ve already repaid indexed debt, the ATO will automatically process credits or refunds—unless you have other outstanding government debts.   - Next year, the government plans to cut an additional 20% off all student loan debts!   👉 Read the full announcement here: https://lnkd.in/gstvwdjE

𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗦𝘁𝘂𝗱𝗲𝗻𝘁 𝗟𝗼𝗮𝗻𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗞: 𝗪𝗵𝗮𝘁’𝘀 𝗕𝗲𝘀𝘁 𝗳𝗼𝗿 𝗬𝗼𝘂? Navigating the complex world of student loans can be daunting, but knowing your options is crucial for financial freedom. Let's explore the differences between 𝗴𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 and 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 student loans in the UK, particularly looking at 𝗿𝗲𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆, 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗿𝗲𝗹𝗶𝗲𝗳 𝗼𝗽𝘁𝗶𝗼𝗻𝘀, and 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲𝘀. 𝟭. 𝗥𝗲𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗙𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 - UK government student loans offer income-contingent repayment plans. What does this mean? It means your payments are based on your income, ensuring affordability as you only pay a percentage of your income above a certain threshold. - Private student loans typically have 𝗹𝗲𝘀𝘀 flexibility, with fixed repayment amounts that don't consider your income level. 𝟮. 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗿𝗲𝗹𝗶𝗲𝗳 𝗼𝗽𝘁𝗶𝗼𝗻𝘀 Facing financial challenges? - Government loans in the UK are forgiving, with repayments halting when your income falls below the repayment threshold, and interest rates pegged to inflation. - Private loans may not offer this level of flexibility, often having stricter terms for payment breaks. 𝟯. 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲𝘀 - Interest on UK government loans is tied to the Retail Price Index (RPI) plus up to 3%, depending on your income. - This means the rate adjusts with inflation, which can be more predictable over the long term. - Private student loans might start with competitive rates but often require a good credit score and might not offer the same security against inflation. 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆: For those who value predictable, income-based repayments and financial security, government student loans are typically the best choice. However... If you can secure a low-interest rate and are confident in maintaining a stable, high income, private loans might offer some advantages. __________ Begin Your Financial Journey With Confidence! Understanding the nuances of your student loans is vital for long-term savings and security. And should be 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗲𝗱 𝗰𝗮𝗿𝗲𝗳𝘂𝗹𝗹𝘆 when deciding if taking out a student loan is the right choice for you. #StudentLoans #FinancialEducation #HigherEducation #UKStudentLoans #EducationFinance #RepaymentPlans

THE NEW RULES FOR REPAYING STUDENT DEBT HAVE BEEN ANNOUNCED – https://lnkd.in/gJMnqQZA They’re pretty sensible (and that’s good – ‘sensible’ is rare when elections loom). It makes sense to raise the income at which debts start to be repaid, and for the repayment to be on a sliding scale. And I’m glad that the mooted change of some outright debt forgiveness hasn’t happened. I agree with the gov’t view that this won’t hurt inflation prospects (as it is a steady cost, rather than a big lump). The changes are also pretty generous – remember that improving the treatment of those who went to uni has to be paid for by those who didn’t go to uni, so these changes come at the cost of less well off people (who’ll eventually have to pay for the more generous treatment of graduates). And a nerd point – Australia’s loans to students are “off budget” in Australia. Something should only be off the books if it is a commercial arrangement – if it will pay its own way. Yet it looks less and less likely that the biggest off budget schemes in Australia – student loans and the NBN – are actually commercially viable.  That means budget deficits are a bit worse than the official figures say: we’re hiding some true costs from ourselves.

HECS and VET Student Loans indexation to be overhauled in budget with $3 billion in student debt 'wiped out' In short: Student debts will be lowered for more than three million Australians under reforms designed to stop HECS loans growing faster than wages. Loan indexation will now match whichever is lower out of the Consumer Price Index or the Wage Price Index — which the government says will prevent another shock increase like last year's 7.1 per cent increase. The changes will be introduced in the 2024 budget and, pending getting through parliament, will take effect from June. https://lnkd.in/gvmrZn_Q #vocationaleducation

💸 The highest student debt balance in Britain currently stands at £231,000, according to data from the Students Loans Company (SLC). Another graduate’s account has built up £55,000 worth of #debt in interest alone, a freedom of information request by the BBC has revealed. On average, students now leave university in #England with £44,940 worth of #student loan debt, said the SLC. The largest #repayment amount made by a graduate is £111,000. An SLC spokesperson said: “These exceptional balances are a function of #government policy that, in certain circumstances, exempts specific courses from repeat study restrictions, permits funding for additional years of #study, and results in SLC awarding additional years of #funding when an individual demonstrates compelling personal reasons.” In the academic year 2003-04, the average amount of debt a British student amassed was £3,190, according to House of Commons research, with 81pc of eligible students taking up the loans. In 2009/10, the average annual amount combined maintenance and #tuition debt in England was £5,980. This has risen 143pc over the past 14 years to £14,560 average annual debt amount in 2022/23. Read more ⬇ https://lnkd.in/emKQMSVa

In Australia, Higher Education Loan Program (HELP) debts, particularly the HECS-HELP component, present a unique financial obligation for graduates. Historically, incentives encouraged voluntary repayments, but recent changes have left many wondering about the best approach to manage their student debt effectively. In our latest insights, we delve into the intricacies of HECS-HELP and explore strategies to navigate this financial landscape. Read here:- https://lnkd.in/g2-PuP2Q *** [Before acting on any General Advice, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) for that product before making any decisions.]