Paying off the Student Loan

whitfreak

Its something I noticed when they introduced it. And a decade or two down the line I'll imagine someone will do the maths a realised what a mistake it all was.... Or maybe graduates will be earning so much is actually works out. I dont have tution fee loans and its going to take me 15 years to pay it off, unless I can get promoted a couple of time...

choc_mouse

I don't think the 25 year policy is too bad for the government...I think the majority of graduates will get (well) paid work eventually. I couldn't imagine someone who had successfully gone through 3 or 4 years of university just living off the minimum wage for 25 years! (Although I'm not saying there aren't such people in existence.)

When I graduated 4 years ago, I had almost £20k of student loas. At the salary I was earning then, £0, it seemed I would never pay that back especially with interest on the loan at more than 4%. Now, I'm fortunate enough to have a decent salary and it looks like I'll pay it all off (by minimum deductions) within the next decade at the current rate! I'm hoping I'll get pay rises, so even less than that.

You could also view student loans as an investment by the government. By helping students get degrees, they could go on to provide wider benefits to the country and economy.