The student loan system is absolutely diabolical..

Baxter100

I've posted a thread on here before about this but it just baffles me how the system has been designed....

Student A borrows £36,000 to go to University. Student leaves university at age of 21 and starts a job on a salary of £15,000. Student has a relatively successful career with an increasing salary and by the age of 51 is earning £50,000.

At this point the loan is written off. The total amount of the loan being written off (assuming the current interest rate of 3.3%) is...... £87,000. nearly 250% of the initial amount borrowed. For someone who has had a reasonably successful career!

Do we really think that in 25/30 years time the government is going to be letting these loans be written off? I'm not convinced...

Baxter100

At the current interest rate, students would have to earn £39,000 immediately after leaving University just to ensure that the total loan debt stays as it is...

silvercar

Add a bit of inflation to your figures and the £50k at age 51 won't seem so amazing and/or the write off not so great.

Forget the write off, how much has student A actually paid off and does that seem reasonable for 3 years at university?