tag:blogger.com,1999:blog-1141932539860553199.post6353493838985746428..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: A version of "Right to Buy" we can fully supportMark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-1141932539860553199.post-5161932779041359332017-12-02T21:04:53.038+00:002017-12-02T21:04:53.038+00:00SL, currently RPI is about three times the gilt ra...SL, currently RPI is about three times the gilt rate, which makes you wonder why they gambled on index linked being less than Bank rate. Graemehttps://www.blogger.com/profile/11007306140530173428noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-25069489425547969392017-12-02T13:38:04.295+00:002017-12-02T13:38:04.295+00:00SL, surely that must be allowed? Discount for earl...SL, surely that must be allowed? Discount for early payment?<br /><br />OTOH, I've done that thought experiment before, selling of tax revenue streams. Then watch the investors squeal when the underlying taxes are phased out. Owning land is pretty much like buying up future LVT stream from that land.<br /><br />SL, probably not.<br /><br />S, yes of course, I did say that the figure was not plucked out of the air. If there an early repayment/discount option, then it would only be taken up by those who would have paid off in full with interest i.e. likely higher earners/those whose parents have a few bob to spare.<br /><br />But the principle stands. In Denmark you can buy back your own mortgage.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-1975599413442643292017-12-01T20:07:14.146+00:002017-12-01T20:07:14.146+00:00S, good point. It doesn't always pay to be cy...S, good point. It doesn't always pay to be cynical.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-20453612579543778442017-12-01T19:04:08.132+00:002017-12-01T19:04:08.132+00:00Offering students the chance to buy their loans fo...Offering students the chance to buy their loans for less than face value wouldn't work though would it?<br /><br />You'd just get 40% of all the good loans (its pretty likely that someone who can come up with 40% of the capital in one hit would be good for the whole amount over the period of the loan), and the bad loans would still default, so the payback to the State would be far less than the 40% that it gets this way. <br /><br />The only reason the bonds are being sold at less than face value is that they know X% will default but not which ones. The discount is across the board, not on any given loan. If you attempt to buy your loan out you have immediately put yourself in the 'able to pay' pile and no lender with a brain would accept your offer. Sobershttps://www.blogger.com/profile/11407417389022146963noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-31550964858572076742017-12-01T16:53:55.898+00:002017-12-01T16:53:55.898+00:00You can repay student loans early if you want to (...You can repay student loans early if you want to (at least you can the 2002-2006 vintage I have). But the only interest is RPI inflation and you don't have to pay them off at all unless you are earning over a certain amount, so there is no point.Steven_Lhttps://www.blogger.com/profile/05029437876479574883noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-5528281204374967752017-12-01T16:47:19.077+00:002017-12-01T16:47:19.077+00:00I've read that student loans are like a tax be...I've read that student loans are like a tax because they cannot be repaid early. Therefore the government is selling off a future tax stream. I understand that normal government bonds are an old fashioned form of 'selling off' future tax streams as well, but from general taxation. What's to stop them going crazy and packaging up and securitising all sorts of specific taxes?<br />Sell off future Stamp Duty?<br />Sell off future fuel duty?<br />Sell off future VAT?ontheotherhandhttps://www.blogger.com/profile/08912527435489023299noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-47439385961538238492017-12-01T16:29:05.097+00:002017-12-01T16:29:05.097+00:00And funnily enough I was at uni from 2002 to 2006!...And funnily enough I was at uni from 2002 to 2006!Steven_Lhttps://www.blogger.com/profile/05029437876479574883noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-415901084158704792017-12-01T16:27:58.062+00:002017-12-01T16:27:58.062+00:00Is there actually anything in law to stop someone ...Is there actually anything in law to stop someone making the Student Loans Company an offer in 'full and final settlement'?<br /><br />You send a cheque with a letter making the offer and stating that banking the cheque will be deemed acceptance.<br /><br />If they bank it, and keep trying to collect your loan through PAYE, you would have to take them to court, which is the main downside I guess.Steven_Lhttps://www.blogger.com/profile/05029437876479574883noreply@blogger.com