Student Tuition Fee Trap
The trap will not be sprung for at least three years (into the rhetorical 'future') after entering the trap and being totally unaware of what it is. The scheme will be fully implemented from 2012 and the timing is highly significant. By the time that a record number of victims have been trapped, the grip only then becomes apparent.
- Whatever the rhetoric from government about nothing to pay 'up front' the interest clock begins ticking from the very first day of the first part of the loan. By the time year three and graduation comes, the interest clock has quietly been ticking away in the background so the real surprise will be that the debt has climbed substantially for...
3 years already!
Repayment has been £0 while interest has been (and is) applied at the RPI of the day (variable, but continuously upwards). Note that the higher interest yielding RPI is used and NOT the lower CPI.
Cynically, government complains (nauseatingly - DA) that the miscalculation (what! - DA) of 'potential' sign-up will ensure that the funding (no up front fees to pay) will not be sufficient. Cue the warning that increases in the funding budget to make up the shortfall will fall on the taxpayer to stump up (more taxes/cuts coming: note that instead of explicit tax rises, more cuts are implemented). The cynicism can be illustrated by reaslising that government has raised the ante AND then has the effrontery to 'conjure' up some more taxpayer financing to pay for it.
Create (be) the problem and
provide the solution
This pushes the onus onto the taxpayer in typical government fashion and raising inflation (it's deliberate: by raising inflation many unrelated things can be hidden). This could only apply for the first three years until the 'virtual' debt interest starts rolling in. Then all will be fine and forgotten. The student loan/debt/expensive education system will have been introduced.
The new normality will
have been established
- Governments don't help the people, they strangle them. Ever since money was invented, the control of the people got easier. The control through personal finances gets tighter and is absolute.
- Many, no doubt, will have found well-paid jobs and will be forced to start repayment. The smart ones will pay as much as possible to shorten the 'loan' period and pay as little interest as possible, even though there will be at least 3 years interest already loaded onto the 'loan' (aka the 'enforced' debt). It's a prediction that government will 'cherry pick' the success stories and promote the virtues of a university education. Those many graduates who possibly don't find jobs, will be conveniently overlooked.
- It is not conceivable that government can plan ahead more than a year or two and this exemplifies that 'thinking' is almost by the day ready to exploit what happens the day before. Not joined up government. The ethos is simply to pave the way for the next label.
The squeeze turns into crushing the neck around which the yoke has been chained. The shackles around the ankles start to get heavy as the doors to the trap are closed. The water begins to trickle into the room very slowly filling the room. The trickle is so slow it isn't recognised as a serious problem at the beginning. The water increases to fill the room. The room stays the same size. Water continues to trickle in. Awareness slowly dawns that the trap will flood and drown all that are caught in it. The election of a government would have been settled months before the entire façade is nationally revealed.
Too late
The early 'facing up' to the alleged financial constraints appears to be tackling issues, but actually creates greater 'distance' (in terms of time) between the introduction and ultimate revelation.
Entering university (the trap) and escaping the trap (exiting university with a probable 2.2) will happen, but not its consequences. Statements of account must be requested so indirectly hiding details of interest added.
The information provided in the USA is much clearer than the UK information. That loans are necessary defines the double-edged sword: raise the cost by 175%: £3290 for 2010/2011 -> £9000 each year from 2012) to ensure most 'poor' students need a 'loan', creating a massive and very long-term debt. If the debt has not been paid off after
30 years
it will be cancelled. The interest accrued over a 30 year term (for a three year advance) would be monstrous. At least buying a house should results in the bricks and mortar of a property. A university degree is of unknown use, but the cost will continue for a minimum of potentially 27 years. A working lifetime. And possibly (probably - DA) little to show for it. Or justify it.
The increase from £3290 to £9000 corresponds to a jump of £5710, an annual increase of over...
273%
- A staggering amount and demonstrates the incredible arrogance that attempts to justify such a yield. If salaries were to rise by an equivalent amount? That would be unbelievable. Rather than the more believable sub 5% level (very sub - DA). Unless, of course, considering the back-door method of salary increase by the bonus culture. The bonus is a poor euphemism for a pay rise when a business makes enormous losses. The alleged belief that such 'workers' have value and must be retained at all costs (literally) 'or they may go abroad' declares all other 'workers' as having absolutely no value at all. The nauseating association of money and 'value' or 'worth'.
- Margaret Thatcher in 1985 set the precedent by deluding the public into thinking public sector pay was being restrained yet pumping up MP benefits. An indirect 'salary' increase was cynically engineered. Salaries were hailed as being held back, but other tricks were going on. An Additional Cost Allowance change allowed MPs to begin claiming their mortgage costs rather than hotel bills and rent. So was created the property speculation monster. Tony Blair (Labour) extended this Thatcher (Conservative) concept to London-based ministers since they were always whingeing of not being paid enough.
It's the stuff of 'terminal vomiting'
Alcohol Addiction And The Hook
- As a perverse argument, consider the alcoholic or addicted smoker. Their 'debt' goes on forever, unless they can break the habit and can make the student fee debt pale into insignificance. Even 3 pints of beer a day (£10) can easily reach £70 a week or more (£300/month). Add to this the cost of 7 x 20 cigarettes (around £35/week or £140/month) and an addict who smokes and drinks every day, could easily spend upwards of £440/month just on 'fags' and 'booze'. Well over £5,000 every year. For 40 or more years until death. Something in excess of £200,000 wasted in a lifetime. Addiction is a 'good earner'. Governments have little interest in stopping the trade in 'drink' and 'drugs'. All the hand-wringing is nauseating when addicts are not actively discouraged. Some doctors do genuinely care, but governments do not. They exist to 'strangle' the people and 'extort' as much finance from the citizens of that country as possible. It's a global phenomenon. And incredibly lucrative. Then there really is nothing to show for their money. Economies rely on the revenue gained from tobacco, alcohol and petrol.
Die from smoking and drinking before getting ill.
Perfect. No after care.
Still believe governments care? DA
Typical political control involves not (necessarily) telling lies, but always withholding the complete truth. Complete describes the good and the bad. Politics is all about the good.
ONLY
The bad is not disclosed, but just hidden. When the term transparent is 'spun' around it turns into impenetrable darkness. Truly wicked. It was consistently (attempted) to condition people into believing that Peter Mandelson was some sort of a Devil incarnate. Cameron, Osborne and Cable make a suitable three-pronged hand (one finger each in the trident) that represents an even greater evil.
It is interesting that in the current round of 'student riots' some of the daubed graffiti describes: 'Tory scum'. This indicates political splinter group(s) infiltrating student ranks. The LibDems are not mentioned, even though a part of a Coalition government and (free education) Dr. Vince Cable (as LibDem Business Secretary) is 'ministerially-responsible' for implementing the hike in student fees.
- Riots: who is the violent activist?
- Impart damage, but don't get fingered with the blame
Another elephant in the room is that in times of 'job losses' the new-graduate flood exiting University (but still within the iron grip of the trap that is about to be sprung), getting a well-paid job that enables servicing the accelerating debt will continue to decrease. Acquiring (up to) a (30-year) debt is actively encouraged. The prospect of getting a well-paid job is overlooked as it is assumed everyone will get a good job. The only 'reward' for a degree is that the clock starts ticking and will continue for possibly the next 30 years. A further elephant in the room is that over a 30 year period there will be several governments either re-elected or 'changed' and none will be responsible for anyone's current status. Interest rates and rules can all changed in the heart beat of convenience. A mortgage is a similar lifetime's yoke. A 'life' sentence for 1st degree murder 'should be subject to only a 15-year minimum'.
Repossession
posted by Louis Brothnias @ 8:38 am
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