But this only applies if you're terrible at budgeting. Most people will never see the loan repayments, because they are taken out by PAYE. If you're relying on having that £100 or whatever to hand even when you know full well that it isn't gonna be there then you're financially irresponsible and shouldn't even think about taking out a mortgage.
Student Loan - How much debt after uni?
- Thread starter AmDaMan
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But this only applies if you're terrible at budgeting. Most people will never see the loan repayments, because they are taken out by PAYE. If you're relying on having that £100 or whatever to hand even when you know full well that it isn't gonna be there then you're financially irresponsible and shouldn't even think about taking out a mortgage.
Care to expand?
lolwhat?An annual statement has just arrived from the SLC and i'm surprised to find that I have £9000 of debtand each month the interest is around £35.
This will annoy me for sure after uni as I hate having any outstanding debt (who doesn't). The question is:
1) How much do they deduct from your monthly salary if you earn over the threshold? As the interest @ £35 - a payment must take forever if they just deduct a small amount?
So you signed up having read nothing and not understanding the system?
that's not the point. when you are trying to get a mortgage out that is a huge portion of your pay to just lose.
and its 9% of the gross
Surely that's a good thing as you then don't pay income tax on your repayments!
I'm on a 4 year degree, with the max non-income assessed loan taken out each year .. means I don't like looking at the SLC statements. I'm just thankful that I got in the year before top-up fees!
On another note, I read somewhere that the expected increase in earnings for doing an arts degree as opposed to not going to university was £37,500. This was mentioned in our student newspaper in reference to the government thinking about removing the cap on tuition fees. According to a survey refered to in the same article it would result in the average tuition fee charged per year being £6-7,000, making going to uni for an arts degree financially worthless!
How accurate that is could be debated, but it's certainly food for thought.
On another note, I read somewhere that the expected increase in earnings for doing an arts degree as opposed to not going to university was £37,500. This was mentioned in our student newspaper in reference to the government thinking about removing the cap on tuition fees. According to a survey refered to in the same article it would result in the average tuition fee charged per year being £6-7,000, making going to uni for an arts degree financially worthless!
How accurate that is could be debated, but it's certainly food for thought.
Associate
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Personally I am in around £16000, I dont plan to be paying that off for a long time, as I am doing a masters this year and working towards a phd abroad next year, so they really have no way of taking any money off me, I do however plan to pay it back eventually but that wont be happening for a while now.
Soldato
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As mentioned before, anyone doing a degree at a Uni that isnt a complete joke (more unis are crap than ones are good!) you will end up paying it all off.
A friend of mine did psychology at an average uni and earns almost £13k a year, wow
What a waste of time and money.
(A full timer at tesco gets £12300 without overtime).
What age does the loan get wiped off at?
I can't imagine it being before you are 40, as then the government has a SERIOUS money issue on their hands as people won't be paying it back.
A friend of mine did psychology at an average uni and earns almost £13k a year, wow
What a waste of time and money.(A full timer at tesco gets £12300 without overtime).
What age does the loan get wiped off at?
I can't imagine it being before you are 40, as then the government has a SERIOUS money issue on their hands as people won't be paying it back.
Many many degrees aren't worth the paper they are written on. Especially when you think for those 3 uni years someone could have been working full time too.
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as far as I can tell, yes you do pay.
you get gross £x. now you lose NI, tax, based on £x, and now you also lose 0.09*x. So it seems to me that I've paid tax and NI on top of the student loan repayment.
effectively, I'm paying 6.4% of my total net wage.
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Soldato
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I fail to see how any teenagers will EVER be able to live in their own house and have holidays / a nice life with debts like these. Companies don't pay enough for hard working families to survive with debts anymore in the UK.
Look at it this way.
You have a debt of £10,000 before you even start work. Your house (by the time you come to buy it) will need a mortgage of £150,000. Bills,food, holidays etc will not be as cheap as they are now (but wages will stay static in most professions)
So you borrow off mum and dad to get your deposit & struggle, for say 15-20 years to get your head above water with your wife and you working all the time with holidays every 3 or 4 years if you are lucky.
Now you are 35 / 40 years old with 2 kids. You are just breaking even now - but still can't afford any luxuries or anything that makes you happy as a family. And God forbid you or the wife loose you job.
10 years pass, your kids are in the same cycle, at Uni with an even bigger loan - and they come to you for help (maybe even help for a car or deposit for a house) - You have no savings - you still have a mortgage, and it's another 25 years of working before you can even dream of retiring (with no pension)
Whats gonna happen now ? In 30 years you will just about manage to pay off your mortgage, but you will still have to work be able to afford things. So you will probably die at work, not being able to give your kids any help with stuff.
And this is assuming you don't loose your job, don't get sick, and don't seperate from your wife or have to pay maintenance for any kids you had with other partners or exs(almost everyone will go through a period where they will experience one if not all of these)
And the best about it is, the vast majority of Uni leavers think they can just jump into jobs paying 30 or 40 thousand a year, so they can pay it all off instantly. The reality in the UK is that most Uni leavers start on less than £20,000 (if they are lucky enough to actually get a job)
Nice thought isn't it ....
Look at it this way.
You have a debt of £10,000 before you even start work. Your house (by the time you come to buy it) will need a mortgage of £150,000. Bills,food, holidays etc will not be as cheap as they are now (but wages will stay static in most professions)
So you borrow off mum and dad to get your deposit & struggle, for say 15-20 years to get your head above water with your wife and you working all the time with holidays every 3 or 4 years if you are lucky.
Now you are 35 / 40 years old with 2 kids. You are just breaking even now - but still can't afford any luxuries or anything that makes you happy as a family. And God forbid you or the wife loose you job.
10 years pass, your kids are in the same cycle, at Uni with an even bigger loan - and they come to you for help (maybe even help for a car or deposit for a house) - You have no savings - you still have a mortgage, and it's another 25 years of working before you can even dream of retiring (with no pension)
Whats gonna happen now ? In 30 years you will just about manage to pay off your mortgage, but you will still have to work be able to afford things. So you will probably die at work, not being able to give your kids any help with stuff.
And this is assuming you don't loose your job, don't get sick, and don't seperate from your wife or have to pay maintenance for any kids you had with other partners or exs(almost everyone will go through a period where they will experience one if not all of these)
And the best about it is, the vast majority of Uni leavers think they can just jump into jobs paying 30 or 40 thousand a year, so they can pay it all off instantly. The reality in the UK is that most Uni leavers start on less than £20,000 (if they are lucky enough to actually get a job)
Nice thought isn't it ....
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Just tried it on a PAYE calculator and I was wrong, you do infact pay tax on the whole amount still. I must have been getting mixed up with some other scheme.
Soldato
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I'm at about 25K it goes up like £60 a month or something silly.
Student loan isn't real debt though so it makes no odds
Student loan isn't real debt though so it makes no odds
Soldato
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How is it not real debt. You still owe it to someone ? And it is still less money you have every month when it does start coming out.
And it's not as if it goes away (unless you reach a specific age, die or move country)
And it's not as if it goes away (unless you reach a specific age, die or move country)
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Isn't that what life has been like for centuries for the majority of the UK?
Unless you get on in life and get ahead with a well paying job, it's going to be tough. Life isn't easy, luxuries don't come on a plate and the high paying job of your dreams won't just miraculously appear.
Except these days it's much better - the quality of housing that the average person lives in. The amount of food as well as luxuries that we can all afford - computers, televisions, furniture, clothes. The fact that most families can go on foreign holidays at all is pretty amazing when you compare it to previous generations.
absolute lol.
Basically yes.
What was my other option? Read, understand and then what, i'd have still got the loan.
Doesn't sound like i'm worse off than anyone here who have all read and understood the system?
Like people have said it's at the rate of inflation which hasn't really been an issue until lately where it has gotten quite high.