Student loan is trechearous

Valentas

Hello,

I made some calculations on student loans. And I was terrified what I have found. Lets say I embark on Biochemistry course which costs 9k/ year. During three-year course, I will start to be growing my loan with 3 % + infliation stuff. I will get out of uni with 30k + debt. Lets say I will earn 30 k a year which is imposible for graduates tbh. It is 9 k over threshold and 9 % of this is 810 pounds to repay. However, now I can see a flaw in the system. If I am liable 30k and I will grow it by 3% + infliation I will be liable 32 k + and I repaid 810 pounds. so people !!!!!!? I just started to repay my loan which system claims must be repaid in 30 years or it will be wiped but after paying I just grew my loan because of over 2k+ increase over that year. How am I to repay and how am I to trust this cursed system if they can always change T&C whenever they want? Also, no one guarantees me that I will have a job. Do you think i will be idle because I am not repaying? But damn loan is still growing at that time. That sucks people. At least I must repay it so that I can see it is being paid, the amount of loan shrinks but not grows. Can you explain me this absolute nonsense?

bris

Don't go to uni and get a job at mcdonalds, problem solved.

glasgowdan

Welcome to the world of studies, mortgages and paying to live!

miketaff1408

Valentas wrote: »

Hello,

I made some calculations on student loans. And I was terrified what I have found. Lets say I embark on Biochemistry course which costs 9k/ year. During three-year course, I will start to be growing my loan with 3 % + infliation stuff. I will get out of uni with 30k + debt. Lets say I will earn 30 k a year which is imposible for graduates tbh. It is 9 k over threshold and 9 % of this is 810 pounds to repay. However, now I can see a flaw in the system. If I am liable 30k and I will grow it by 3% + infliation I will be liable 32 k + and I repaid 810 pounds. so people !!!!!!? I just started to repay my loan which system claims must be repaid in 30 years or it will be wiped but after paying I just grew my loan because of over 2k+ increase over that year. How am I to repay and how am I to trust this cursed system if they can always change T&C whenever they want? Also, no one guarantees me that I will have a job. Do you think i will be idle because I am not repaying? But damn loan is still growing at that time. That sucks people. At least I must repay it so that I can see it is being paid, the amount of loan shrinks but not grows. Can you explain me this absolute nonsense?

You might be better off trying for an English Language degree, then reposting after graduating so I can understand the "absolute nonsense" that is your post.

jpwjpw

Think of it as a tax (at 9% over £21k) rather than a loan.

If you ever earn enough to pay it all off, then good for you, you'll reap the benefits too!

somethingcorporate

Yep, it is absolutely a tax nowadays. Even for decent earners it'll take them decades to pay it off.

I graduated with 14k of debt, started earning £28k when I graduated and earn twice as much 5 years later but will still be ~30-31 before I pay it off. I cannot imagine how people graduating with twice as much debt stand a chance to pay it off unless they land amazing jobs.

rdchick

I graduated 2 years ago - I have paid £45 to my student loan - which is around £19K (I earn £15K a year doing a job which I only got by being a graduate - however probably would get more from working in McDonalds!)

I try not to think about it too much! It is a tax and to be fair I think it will be written off before I pay it off!

I am also thinking of going back to uni - which is terrifying in itself! xxx

dothebartman

glasgowdan wrote: »

Welcome to the world of studies, mortgages and paying to live!

hmmm from the generation of free uni education per chance???

Valentas

Well, I considered scenario such as surging inflation which may be caused by recession of European Union. Student loan uses 3% + inflation figures thus I am very anxious about this. One-time rise in inflation will cause student debt to be unpaid by any means. Also, I found that you would start to pay off debt only if you earn 41k and more a year which is impossible by any means when you graduate. Just want some more constructive comments on this topic.

mynameistallulah

Valentas wrote: »

Lets say I will earn 30 k a year which is imposible for graduates tbh.

Valentas wrote: »

if you earn 41k and more a year which is impossible by any means when you graduate.

Given that you have such low aspirations, I would agree with this:

bris wrote: »

Don't go to uni and get a job at mcdonalds, problem solved.

Devon_Sailor

Valentas wrote: »

Well, I considered scenario such as surging inflation which may be caused by recession of European Union. Student loan uses 3% + inflation figures thus I am very anxious about this. One-time rise in inflation will cause student debt to be unpaid by any means. Also, I found that you would start to pay off debt only if you earn 41k and more a year which is impossible by any means when you graduate. Just want some more constructive comments on this topic.

Why not read Martin's very detailed and in depth articles on here specifically regarding the new Student Loan system....? It gives you all the facts, figures, benefits and pitfalls, and comes to the conclusion (more or less) that you are going to in reality be a bit better off than under the current system (pay it back at a higher threshold, etc).

It really shouldn't put you off studying - as you say, at the end of the day whatever you do not pay back gets written off after a time limit. Consider it more of a graduate tax. And, in fairness, you go to university and reap the benefits in the long run so I am a firm believer that you should contribute to your own betterment.

Dont rely on your own sums and conclusions because, I have a feeling they may not be entirely accurate - certainly within the wider context of student funding and long term issues.

Regards,

D_S

(yes, from the generation of having to pay back my own loan, before anyone pipes up thinking im a Baby Boomer free-loader! lol)