To people that have finished university, and are paying off their loan...

[Naffa]

How does it affect you, your income and what not? I ask because I had the startling realisation of how much debt I'm going to owe if I go to uni, and I'm trying to figure out if I think it's worth it.

Thank you for any insight and wisdom passed on.

 

[OpenToSuggestions]

Firstly, half the university courses are rubbish, as there is no set difficulty. Unlike Alevels, which are worth the same wherever you do them.
For example: Sports Science. You will end up putting up badminton nets at a leisure centre at best, as there is no money in this field. Similar with English, Social Scienes, Arts etc.

You loose 9% over £15,000 per year to pay back the loan.

Tbh if you do a degree and don't earn at least that then you have wasted your time.

Where you thinking of going, what do you want to study and where do you want to be?
What Alevels do you have?

It is good that you are considering your future rather than thinking go any old degree at any old uni to party hard for 3 years.

 

[Glaucus]

It all depends how much you earn. But it certainly takes a decent chunk out of your wage. Just at the time you are trying to buy big items like houses.

I only had 9k debt and if I was going to uni again, I would look at sponsored courses. They are hard to find out about. But a fair few exist.

Or make sure it's a course related to a job you want to do and get a 1st from a good uni.

 

[Sukh]

I used this: Salary calculator to work it out.

found out that the increased wages I would earn would easily pay off the loan.
Pay the minimum amount of possible, its practically free in some resepcts.

 

[lemonkettaz]

I have 3 years of uni loans to pay off and I dont even have a degree

 

[J.B]

I used this: Salary calculator to work it out.

found out that the increased wages I would earn would easily pay off the loan.
Pay the minimum amount of possible, its practically free in some resepcts.

I was going to post that, beaten!

Mine works out at £50 a month and I dont really think about it, goes out the pay cheque so I never see it.

The idea of being in student debt doesnt bother me, it's not like they are going to come and reposses the car!

 

[daz]

I have about £18K debt It's a bit annoying having the student loan repayments but at the end of the day I have an education and I wouldn't trade that for no loan repayments. I feel it's better considered as a "graduate tax" rather than a debt hanging over your head anyway.

 

[bmi92]

I used this: Salary calculator to work it out.

found out that the increased wages I would earn would easily pay off the loan.
Pay the minimum amount of possible, its practically free in some resepcts.

Common misconception.

Say you get the average graduate salary which is about £26,000 I believe. Average this at £2166 a month, 9% of this is around £195 a month, amount in the interest rate, its hardly free.

 

[vertica]

There wont be that many people who are one the current scheme and have graduated (2yrs worth maybe?)

I'm in my 3rd year of 4, and from my current balance i esitmate my student loan +interest will top £28k before i graduate (roughly £7k a year inc cumlative interest)

You'll pay 9% pre-tax of everything you earn above £15k.
This starts the financial year after you graduate, and will continue untill you have paid it off (+the interest) or 25years, after this they write it off.

So if you earn £15kpa or less you pay nothing back.
Earn 16kpa and you'll pay £90 a year back, or £7.50 a month, before they take tax off the rest of your paycheque.
Earn £20k and that is £450 pa or £37.50 a month
25k = £900pa / £75 pcm
30k = £1350pa / £112.50 pcm
35k = £1800pa / £150 pcm
40k = £2250pa / £187.50 pcm

i'll stop here as very few graduates will earn more than this initally and the pattern is it's just £90 for every additional £1k you earn.

 

[Glaucus]

I have about £18K debt It's a bit annoying having the student loan repayments but at the end of the day I have an education and I wouldn't trade that for no loan repayments. I feel it's better considered as a "graduate tax" rather than a debt hanging over your head anyway.

That's only true if you get a good degree and then use it.

 

[Randomface74]

I left uni with about 13k debt. I'm about to turn 24 and I've paid it all off. Now I have a good career, and no debts.

So if you're going to uni to mess around for 3 years, then no it's not worth it. But if you do something that gets you a career, it's easily worth it.

 

[Sukh]

Common misconception.

Say you get the average graduate salary which is about £26,000 I believe. Average this at £2166 a month, 9% of this is around £195 a month, amount in the interest rate, its hardly free.

I meant free in that it is linked to inflation and hence the value is not increasing in real terms.
Also free in that the wage I could earn when employed in a graduate job is far greater, and the future career path is far greater, than if I hadn't, making the burden of a loan almost free in terms of potential upside.

 

[anything I don't mind]

how can you pay off 13k debt in a few years ?

i have 5k and it seems like i can never dent it. (not from uni)

 

[Aero]

Not really known any different here my loan comes out of my paycheck before I even see it. its about £60 a month.

 

[Energize]

You'll pay 9% pre-tax of everything you earn above £15k.

It's 9% of earnings subject to NI.

 

[mike66uk]

I borrowed about £9000. I pay back roughly £200 per month. Don't really notice it other than when you think "Hmm.. My wage would have been x+£200 this month if I didn't have that :/"

 

[Randomface74]

how can you pay off 13k debt in a few years ?

i have 5k and it seems like i can never dent it. (not from uni)

I paid an extra £100 a month off it by DD.
Plus the default PAYE amount.
Plus working a load of overtime.
The last bit I just took out of savings to pay it off.

Effort, basically.

 

[mike66uk]

I paid an extra £100 a month off it by DD.
Plus the default PAYE amount.
Plus working a load of overtime.
The last bit I just took out of savings to pay it off.

Effort, basically.

There is no point in paying it off early. The money you used to pay it off early you could have saved and earned more in interest than you were being charged.

 

[BennyC]

There is no point in paying it off early. The money you used to pay it off early you could have saved and earned more in interest than you were being charged.

I was explaining this to a friend. We were talking about if we came into large sums of money. He wanted to pay his off for 'peace of mind'. I explained to him this and that you could use the interest to help repay it etc but he just wanted 'peace of mind'

I too thought this until I sat down and worked it out. Tbh I'd completely forgotten about my student debts until he brought it up.

 

[Glaucus]

There is no point in paying it off early. The money you used to pay it off early you could have saved and earned more in interest than you were being charged.

unless you need the extra money. £200 a month is 1/3rd of a mortgage. People may have savings, but not enough monthly income to cover all the bills and live comfortably.