Myth Busters: Presentation Plan [20 min] Supporting Gatsby benchmark - - PowerPoint PPT Presentation

Aims and Outcomes:

Short-term outcomes:

• Learners will evaluate a set of assumptions about Level 4+study.
• Learners will calculate association costs based on factual, current and relevant information.

Medium-term outcomes:

• Learners will reflect on their own progression routes to identified careers.

Sequence of Presentation

Intr troducti tion Introduction to Hello Future and staff Aims ms an and Objec Objecti tive ves Explain aims and outcomes as on presentation slides. Please see full aims and outcomes above for reference. £50,000 £50,000 Explain to learners that there is a fee of up to £50,000 which is for maintenance loans, tuition fees etc. However, this £50,000 is a student loan and everyone is entitled to apply for a student loan regardless of their background. It is mostly a meaningless figure that, as an individual, you don’t see and what counts is how much you repay. Should ld yo you be be wo worried ab about t gettin getting i g in t to debt? t? Ask for a show of hands to see who is worried about getting in to debt then ask individuals why they are or are not worried about getting in to debt.  Should you be worried about getting into debt? Yes, of course you should!  However, a student loan isn’t like other “traditional loans”.

Myth Busters: Presentation Plan [20 min]

Supporting Gatsby benchmark 2

 If you get a car on finance, and then lose your job or take a pay cut. Do you have to keep paying for your car? [Answer: Yes]  If you get an expensive mobile phone contract, and then lose your job or take a pay cut. Do you have to keep paying for that mobile? [Answer: Yes]  If you have a student loan, and then lose your job or take a pay cut. Do you have to keep paying off your student loan? [Answer: No] ‘Because student loan debt is not like regular debt. It isn’t “toxic debt” and it won’t affect you getting a mortgage. Toxic debt refers to loans, usually at high interest rates, and other types of debt that have a low chance of being repaid or are unmanageable by you as an individual if your circumstances change.’

How

• w do you

you rep repay ay your your stud tudent nt loan? an?



‘Once you leave university, you only start repaying when you're earning above £25,000 a year, and then you’ll pay back 9% of everything you earn above that.’

In In contex

• ntext

Examp Example le 1: ‘This is Greg, he's just finished uni and is doing a research internship at the University of Surrey. He currently makes £18,000 per year. How much is he paying back?’ Answer: nothing. Examp Example le 2: ‘This is John. John has just finished university and has a graduate job at BAE Systems as an IT Specialist. The starting salary is £26,000. How much of his student loan is he paying back?’ Answer: £90 per year, as £26,000 is £1,000 above the threshold and 9% of £1,000 is £90. So that’s about £7.50 per month, probably less than your phone contract. Examp Example le 3: ‘This is Sarah. Sarah is a Head Teacher and her salary is £50,000. How much of her student loan is she paying back?’ Answer: £2250 per year, as £50,000 is £25,000 above the threshold and 9% of £25,000 is £2250. So that is about £187.50 per month, which on a monthly salary of £4,200 is a very small proportion.

What you pay back is not dependant on how much you owe, but how much you earn.

Repayme ayment nt Char art

 Most students won’t pay back their loan. Only if you are earning a really high wage, will you ever make a dent in that student loan.  You start repaying the April after you graduate once you are earning over the threshold.  Then after 30 years, that loan is wiped. And you owe nothing.

Repayme ayment nt in in contex

• ntext

 So to put this is context, let’s think about the other costs in your life.  How much do you think the average person pays for rent on a 2 bedroom house in Barrow? ANSWER £518 a month.  How much do you think an iPhone 8 with 15G of data and unlimited calls and texts costs per month? ANSWER £38 a month is the best deal we could find.  How much would an Audi A3 on finance cost per month? ANSWER £319 per month.

Why hy bother

• ther?

 ‘So if you’re earning around £26k a year, you want to spend that on the things you want to spend it on don’t you? That £90 a year you’re paying towards your student loan could be spent on something else, that would get you about 6.4 large margarita pizzas from Dominoes, or 22 and a half tubs of your favourite Ben and Jerry’s ice cream.’  ‘On average, someone of working age without a degree is making £22,000 a year and this is a great wage too. However, when you have a degree your value massively increases because of all the skills and expertise your education has helped you to develop. So on average, someone of working age with a degree is making about £31,000 a year – a whopping £9,000 more than someone without a degree.’  Of course, money shouldn't ever be the sole incentive to do things, but it's a good example. Those people are earning more because of the skills they have developed through their qualifications, and therefore the pool of jobs they are applying for increases massively.