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Quarter of a million pound debt in 30 years?
richardlister
Posts: 3 Newbie
is this right?
£9,000 loan per year plus £5,000 living = £14k x 3 = £42k. Say if never earned above £21k the interest would be RPI plus 3%, compounded over 30 years on £42k = £241,000!!! .......
and I have twins!
It can't be right can it?
regards,
Richard
£9,000 loan per year plus £5,000 living = £14k x 3 = £42k. Say if never earned above £21k the interest would be RPI plus 3%, compounded over 30 years on £42k = £241,000!!! .......
and I have twins!
It can't be right can it?
regards,
Richard
0
Comments
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In 30 years, the debt would be £0. Not £241,000.0
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richardlister wrote: »is this right?
No:)richardlister wrote: »£9,000 loan per year plus £5,000 living = £14k x 3 = £42k.
True.richardlister wrote: »Say if never earned above £21k the interest would be RPI plus 3%,
If a graduate never earned above £21k the interest would just be RPI. At the end of 30 years the compounded amount borrowed would be written off (under current rules)richardlister wrote: »compounded over 30 years on £42k = £241,000!!! .......
The compounded amount depends on RPI over 30 years and how much a graduate earns... but £241,000 is certainly well within the possible range.richardlister wrote: »and I have twins!
Congrats!richardlister wrote: »It can't be right can it?
regards,
Richard
See above:)
regards,
sermefree20
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