Student Loan - How much debt after uni?

10k.
And who ever says it's free money hasn't had to start repaying it. It might seem like nothing after you finish uni, but once you start earning more than 20k and especially 25k. The payments are ridiculous.

I have an 8k loan over 6 years. I pay £135 a month.
I have a 10k student loan and pay £25-£50 a week depending on overtime.

A student loan is not cheap, the interest is massive.

Yet I'm only paying £14 a month on a 8k bank loan and will be paid of much faster. where the 10k student loan is £25 a month interest.
 
I care so little about my student loan I don't even know how much it is! I imagine somewhere around 17-18k.

It is the least aggressive loan in the world, it cannot bankrupt you and you only even pay it when earning. Who cares what the value of it is, as mentioned just see it as an extra couple percent tax.
 
I had arround 6k 10 years ago....and im still paying it off. Believe me...if you dont need it at the time...dont take it. Even though I have a well payed job....it annoys me every month when I have to pay £100 or so back to them!
Only a few months to go though...thankully:)
 
Eriedor said:
I care so little about my student loan I don't even know how much it is! I imagine somewhere around 17-18k.

It is the least aggressive loan in the world, it cannot bankrupt you and you only even pay it when earning. Who cares what the value of it is, as mentioned just see it as an extra couple percent tax.
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No you wont...its will pi** you off big time. Just wait till you have 300,000 house, big morgage to pay...expensive car to run...kids to pay for....then it will be an extra £250 minimum a month coming from your bank account:D You will change your mind...just like I did.
 
AcidHell2 said:
A student loan is not cheap, the interest is massive.
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No it's not, it's at the rate of inflation. It's the cheapest loan available anywhere.

You pay back at a rate of 9% of your income above £15,000. So if you were earning £15k you'd pay nothing, if you were earning £25k you'd pay £900 a year (£75 a month) and if you were earning £50k you'd pay £3,150 a year (£262.50 a month).
 
toxic said:
No you wont...its will pi** you off big time. Just wait till you have 300,000 house, big morgage to pay...expensive car to run...kids to pay for....then it will be an extra £250 minimum a month coming from your bank account:D You will change your mind...just like I did.
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Would you have that 300k house if you didnt go to uni?
 
and you don't think £100 a month out of your paypacket is a lot?
The interest rate might be lowish. But as it's not a fixed term, you will pay far more interest than prety much any other loan.
 
I have spent almost all my money paying off some of my student loan.
I changed course after first year, so I am at uni 4 years on the 3k a year course fees.
As an engineering student, from day one of work I expect to get 20k+ and so will be paying the entire loan off anyway. I do NOT want a student loan coming out my wage while I am trying to pay a mortgage etc.

I don't fancy 11% NIC, 20% tax AND 9% student loan (over 15k). Really is going to shaft any decent wage!
I don't blow loads gettin plastered and working one day a week keeps my bank about even from term start to term end. Would have helped a lot if I had had some money help from the uni/government or whoever gives it but both parents work so we 'earn too much'.

Any student who is doing a worth while course at uni will be paying off their student loan in full.
 
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Or you could dodge it altogether by setting your own company up and paying yourself 15k and the rest in dividends. You'll never pay a penny :p
 
AcidHell2 said:
and you don't think £100 a month out of your paypacket is a lot?
The interest rate might be lowish. But as it's not a fixed term, you will pay far more interest than prety much any other loan.
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To be paying £100 a month you would have to be earning at least £30k per year - do you think there are many jobs out there that pay that without a degree, and if so, what proportion of people in jobs paying more than £30k a year don't have a degree... ;)

How else would you prefer we balance the books if not for student loans on an already heavily subsidised higher education system?
 
mglover070588 said:
I have spent almost all my money paying off some of my student loan.
I changed course after first year, so I am at uni 4 years on the 3k a year course fees.
As an engineering student, from day one of work I expect to get 20k+ and so will be paying the entire loan off.

I don't fancy 11% NIC, 20% tax AND 9% student loan (over 15k). Really is going to shaft any decent wage!
I don't blow loads gettin plastered and working one day a week keeps my bank about even from term start to term end. Would have helped a lot if I had had some money help from the uni/government or whoever gives it but both parents work so we 'earn too much'.
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If your on £30k your loan repayments will be 4.5% not 9%. Let alone the mediocre payments a £22k salary results in, may not even cover the interest.
 
Jonnycoupe said:
If your on £30k your loan repayments will be 4.5% not 9%. Let alone the mediocre payments a £22k salary results in, may not even cover the interest.
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I said 9% over 15k:p so same thing:)
My view is get it out the way asap. I would hope by the time I am 30 I am earning 30k+, and really do not want student loans coming out of my wage along with the other deductions.

It is also APR growth, so it is growing each year, and then it grows and grows. Say you earn 40k, you lose loads to deductions and then student loan on top of that - I just think it is better to get out the way before I am trying to run a nice car and save for/run a house:)
 
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PinkPig said:
No it's not, it's at the rate of inflation. It's the cheapest loan available anywhere.
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It's RPI inflation too - funny how the Government pick whichever inflation measure suits them. They fix it for a year in September based on the RPI rate in March. So last year, it was a nice, high 4.8%. Dropped back to 3.8% this year, though.
 
mglover070588 said:
I said 9% over 15k:p so same thing:)
My view is get it out the way asap. I would hope by the time I am 30 I am earning 30k+, and really do not want student loans coming out of my wage along with the other deductions.
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No its not.

your post suggest 9% of your income would be taken as student loan payments. That is not the case. If you earnt enough for 9% to be taken its not much of a concern as you'd probably pay it off in 2 months.
 
A friend didn't need his student loan and just put it in an ISA each year. Came out of university, paid off his loan and was left with £1k+ from the interest and bought himself a car. :)
 
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