The con of the Student Loan

Oldernotwiser

Celifein wrote: »

You're a fan of riddles, aren't you?

Are you talking about student loan repayments? Those who "push and better ourselves" (meaning those who earn over £15K) have to pay; those who earn less pay nothing?

Well, that's all that I could think of but it was such a stupid thing to say that I thought I must be wrong!

julyweezer

Pft.
Without a student loan, I probably wouldn't have gone to University, I don't think my parents would just give me roughly £10000 for everything that I've needed! I think one of the most unfair things, is the maintenance grants, which they only give out to students whose parents earn below a certain threshold. Surely all students should get this 'free money' so that they have to borrow less?

I can only speak from my experience, but I am currently in the most expensive accommodation at The University Of Birmingham. Not because I wanted to, but because of the sheer incompetance of Housing Services (But thats another story), and as well as paying for accommodation, I'm having to pay around a tenner a week to get into uni.

But yes, I think that the student loan is one of those things that my generation are having to accept, without getting into debt with banks. Which I would rather not do, even though my bank are constantly offering me the student credit card!

Shoshannah

I am lucky in comparison. My tuition fees are £1200 a year (old style fees) and the LEA pays them for me as I am from a low-earning family.

My student loan is massive though - approx £5500 for the first two years and £8000 for the last three...so it will all add up by the time I graduate. Having a big loan is a short term benefit but not so fun in the long term.

digsby202

Daughter is at Cambridge, in her 2nd year, when she graduates she will owe approx £18,000.00 for the 3 years. When you consider she is at one of the top universities in the world I consider this a steal. It is still a struggle for her and us and she could not have done it without the student loan.

On graduating she hopes to go to America to do a years post grad, the figures they are quoting at Harvard, Columbia, Berkeley are huge, something in the range of £30,000.00 plus for a year. There is no way she could consider it without funding or scholarships, but you have to prove you can pay before you apply then apply for funding once you are accepted.

When I think of the quality of education she is receiving a student loan of £18,000.00 is a bargain. I know friends with three children at Uni in America and its costing them as much as buying a house.

Love D

Kerilinann

I'm luckily studying in Scotland.
Free tuition. It's a blessing.
(although I still have a loan )

talliedebtbuster

I have to be honest and think i was mislead about student loans. I was told the amount you pay off would be the same as the interest rate was so low and linked to inflation blah blah.. they are a low rate loan but still i would advise anyone pay it off asap. the 4.8 rate meant last year even though i paid off 1500 in my monthly repayments i was charged about 500 pounds interest! this is stupid! 4.8 is still really high in interest and 3.8 for this year. your better to save up the cash asap in an ISA with high interest and pay the loan off, get rid of it. Thats my plan!

melancholly

that's actually directly contrary to martin's advice tbh. although you may think 3.8% is a high interest rate, it's a lot lot better than a commercial loan or a mortgage. there is no point paying it all back only to borrow money later for a mortgage at a higher rate. keep your savings in an ISA and use it for a deposit so that you don't borrow as much at the higher rate.

and the 'blah blah inflation' bit is true - it is linked to inflation, but inflation is higher than most of us would like! the cost of living is just going up.

have a read of this article - it has a lot of information in it - and just remember how much more gradutes tend to earn compared to people with no degree. over the course of a lifetime, you'll still end up in profit on it
http://www.moneysavingexpert.com/loans/student-loans-repay

Lokolo

What the hell?

You are completely wrong.

Lets say you have £100.

Pay off student loan, save £4.80.
Put in a savings account at 6%, save £6..

Therefore you are £1.20 better off putting in a savings account than paying student loan off.

LindaS

Personally I think going to university is worth it, even with a massive, nearly 20k loan or whatever it is British students expect to graduate with now.

I graduated last year. My loan is currently £37 659. This is despite working three days per week (one night shift plus Saturday and Sundays). Yes it was hard. But it's perfectly doable, specially since I only had about 15 lectures per week.

And it's all worth it. People take up much bigger loans when they buy a house. So I see it like this, I could have /not/ gone to uni and bought a house for 290 000. Or go to uni and get a house for 250 000.

Now what will I value most in my life, an education or a second bathroom & a conservatory??

I'd take the education.

SteveyLomas

I'm about to head off to university in the USA and I am looking at some serious loans for this priviledge. I am having to borrow about £80k for the two year course, which will be compulsorily underwritten by my parents (thanks Mum and Dad!) at a 4% arrangement fee and a current interest rate of 8.75%. Ouch.

However, nobody is forcing me to do this and I'm willingly taking it on. Indeed the course I am going on rejects 85% of applicants so there are, mainly Americans, queuing up at the door to get in. My point is that having the student pay for the education certainly makes them realise the value of it. I did my undergrad in Nottingham and came out about £15k down which I have ever so nearly finished. Point is I would never have got the job I got without the degree so why shouldn't I pay something extra for that?

Also the thing to remember to you students out there is you never notice it. You never see it, it comes straight out of your pay packet and is effectively just another part of taxation. They never come knocking at your door for it, or sending the bailiffs round. Its just a graduate tax that, if you make the most of your degree, you should see the benefits of with a better career and better pay.