“go to uni” they said, “go to uni for a good job” they said, but nobody said it would be another tax for the rest of my working life
This right here is why I never went to uni. Got an apprenticeship instead and I earn a good wage (over £60Kp.a) and I have no student debt to go with it.
This is a scandal.
AND! And! thescumbvags that voted it in got a FREEfull grant back in their day.
I’ll admit I’m not across just how student loans work. Is this simply just a case of only paying back the interest, therefore not eating into the capital loaned?
Similar to an interest only mortgage, unless I pay against the original loan it’s never going to go down – there’s no capital repayment.
Minimum payments that don’t reduce the principal are the most predatory form of usury and should be made illegal
I went to uni in 2007/8. We were told that the student loans would be ‘interest free’. That was a complete lie.
That doesn’t sound right. £300 a month should outpace interest.
I started my PHD in January, with x1 year paid by my employer and the following 4 years i would need to pay myself. High earner, i thought go on then, dropped off the course last week. I looked at the loan i would need to finish, the pay back structure and also read the interest is rising soon… thought fuck that shit, ill be worse off!!! For years. Shame.
Same. In my case I actually owed a pound less after continuing payments voluntarily for a year at their suggested payment after moving abroad . I’ve remained abroad for ten years since. As long as I don’t reply for another fifteen and don’t work in the UK I’m in the clear. It divides opinion, obviously there are those who think I’m bang out of order, but after showing him the £1 deduction my dad actually came around to my way of thinking.
For those who want to do the right thing, a friend had a parent who cleared the whole thing. Another had enough savings to do it himself. Both had to fight for a year to be allowed to do so with maximum payments set at a year’s worth of debt by default and SLC equivocating on why they weren’t able to clear it. In the mean time SLC billed both for another £3k of interest.
Genuine question: can anybody explain how other countires in Europe can offer free univeristy education without a lifetime of debt attached to it?
It’s a tax rather than a loan now basically for anybody other than the mega earners.
I know people that are just earning the wrong amount to come out worse off every year and have had to take a pay cut to fall under the threshold and become better off.
Well, paying 300£ per month on a 60.000£ loan obviously wont cover the interest. Don’t they teach math anymore in school?
Ah, I recall those days well. Everyone was compelled against their will to invest in random, fixed cost degrees. To not consider future earnings prospects or employability from those degrees. To disregard any consideration of transferrable skill-sets. To remain completely and wilfully ignorant of the cost financing loans, or how they work. Then, later, having to pay them back at market-beating, highly regulated interest rates.
Tyrannical stuff, indeed.
It’s sad how few people seem to understand how student loans work in England.
This person’s debt is going to be written off. It’s the people who actually end up paying it off who are losing out. He’s just paying a graduate tax. Most won’t even end up paying back the capital they borrowed, let alone any interest.
His numbers are made up. £3600 a year would outpace interest. He’s just repeating an American meme here.
Man learns how interest works
£61.5k in 2021 is way above average. I’m curious what he spent the money on.. Certainly not maths or finance. He’s got no effin clue about inflation or what happens if you pay only the interest on your debt.
I owe electric £411 in debt, so I start paying bill plus extra 70 for debt so it can be paid off.
3 months later it was £768
Now I’m confused
I was told to basically forget it exists. It gets written off after so many years and unless you get a really high paying job, you’ll never pay it off anyway.
Dont beleive everything you read on reddit
How does that work?
What do you mean “we”? lol
This is why the country has a productivity problem.
No hope. Literally none.
And phd pays fucking 1800 a month. Minimum wage. It’s ridiculous.
Interest free while studying loan being presented as interest free loans.
Woo, just checked my own balance, which I haven’t for years. I had a £16k student loan. Have been paying it off for over 20 years. Have paid £1200 a year roughly off it, with annual interest of £370 last year. Had 12k left to pay in 2017 (last time I checked the statement!). Pleasantly surprised I have £5k left to pay, but it was “sold” to me as interest free, but the interest has been between 0.9 and 1.5% a month.
I’m lucky. Got my ‘liability to repay the loan is over’ letter recently – it’s proudly pinned on my fridge 🙂
I’ve read that it gets written off after X many years, but I’m guessing that that isn’t the case if you move abroad and go into arrears? Like have missed some monthly payments.
Im 44 and 3 years into my part time open university degree. I have never done higher education and this qualifies me immediately for student finance. I would never have been able to afford tge student fees. I am so very grateful that this country invests in tge citizens to give us the opportunity to re train – essentially backing us without a credit check or any other capitalist based filter.
Once i get my degree i will immediately start paying tge debt off as i am above the threshold, and i will do so with gratefullness and hopefully get a masters and in 10 years be making alot more money, paying higger raxes, and having a nicer car, hpliday, and cash to give my children a better life.
If you cabt see tgat this is a win win, thats a you problem.
Genuine question from someone who left school to make his way in the world at 16.
Are these loans ‘front-loaded’? ie – you pay all the interest off first, then whack through the capital? I thought these were banned in banks but maybe student loans are?
If so, you will start making rapid progress.
I left Uni over 15 years ago with ‘just’ £16k student loan debt due to only paying £1,200 a year tuition fees as I went directly from a Welsh 6th form to a Welsh Uni. I’m grateful I went when I did because I was able to pay it off within 10 years but I now dread the financial burden if my children decide to go (I will obviously support whatever their decision will be and provide as much as I can so they can follow their passion).
I am consistently amazed that there aren’t regular riots about this – it’s absolutely insane how 18 year olds are allowed to sign up to these life changing loans with almost no advice.
I was in the fortunate position I paid mine up front (I was working in a well paid job but needed the paperwork to progress, essentially) – but there were kids in my class at the beginning of the year who had absolutely no business being there and inevitably didn’t even make the end of the first term. Still got the debt, though.
An absolute racket.
And as I did both an undergrad and a separate masters, I pay nearly double. Should I achieve a salary of £90k, between £60k and £90k, approx £18k of that will go on tax and student loans. 60%. Joy.
Non-brit here. Do you guys pay tuition for higher education? Or do your student loans (for living expenses) have interest?
interests are a disease
Its very wrong, but I’ve told my daughter to view it as a student tax, that she will be paying £2-300 a month for evermore, no point worrying about paying it off.
The state should pay for x amount of key degrees a year, open to students from state school, selected on merit. Medicine, engineering, law, maybe a few serious humanities. Perhaps have a bond at the end for a certain number of years to work in the public sector.
Anyone outside this can pay.
Wait until he finds out that the return on investment for his degree was likely not worth it as well with regard to lifetime earnings. Most degrees aren’t now, so you very seriously need to look at a degree as an investment rather than following a passion/what you’re interested in (which is a tragedy in itself).
I started uni in 2007, I was told by my teachers it would be interest free. I actually read the paperwork before I signed it and discovered that it would not be interest free. However, I was also under the impression that my entire life would be a disaster if I didn’t go to university, so I did it anyway. I was annoyed that I was paying for something that students not that much older than me previously got for free, but in retrospect I’m grateful I didn’t go to university and have to borrow on any of the newer plans.
I made my final payment to SLC almost 6 years ago, but I tend to keep that quiet because I don’t know a single other one of my friends that has managed to do it. It annoys the shit out of me that this was clearly designed to push the cost of further education onto a future generation, just to make the university education rates in the UK look good. It’s devalued a degree significantly in the process, which means you now need a masters to get a foot in, which means more debt.
What is the interest rate? Studend loans should be interest-free
The interest on that student loan is close to 6 %, that is just crazy.
I think the student loans should be considered an investment for the state and the interest rates should reflect that.
I Sweden the current interest rate for a student loan is just under 2% which is reasonable with the current inflation and economic situation.
Same here, but I graduated in 2017 so my debt has ballooned
Adjust for inflation.
If you pay less back than the amount of interest that accrues each month of course it’ll go up?
It all gets written off after 30 years anyway – relaaaaaax
Yet people this generation of uni students still vote Tory
This is so strange to read as someone from Europe. I finished university 5 years ago and just got the letter for my payment plan.
Every 3 months 500€ till 2030 or if I all pay it back within the current year I will get a discount of 17%.
All together, half the money was given for free, the other half with no interest and an additional discount if you pay it back early.
If buffles my mind that a country does not invest in its youth and education. The US didn’t just stop supporting their junger people, they are actually robbing them.
They should have a required finances class for all of you highly educated folk. Aparrently intereset is beyond your comprehension.
49 comments
“go to uni” they said, “go to uni for a good job” they said, but nobody said it would be another tax for the rest of my working life
This right here is why I never went to uni. Got an apprenticeship instead and I earn a good wage (over £60Kp.a) and I have no student debt to go with it.
This is a scandal.
AND! And! thescumbvags that voted it in got a FREEfull grant back in their day.
I’ll admit I’m not across just how student loans work. Is this simply just a case of only paying back the interest, therefore not eating into the capital loaned?
Similar to an interest only mortgage, unless I pay against the original loan it’s never going to go down – there’s no capital repayment.
Minimum payments that don’t reduce the principal are the most predatory form of usury and should be made illegal
I went to uni in 2007/8. We were told that the student loans would be ‘interest free’. That was a complete lie.
That doesn’t sound right. £300 a month should outpace interest.
I started my PHD in January, with x1 year paid by my employer and the following 4 years i would need to pay myself. High earner, i thought go on then, dropped off the course last week. I looked at the loan i would need to finish, the pay back structure and also read the interest is rising soon… thought fuck that shit, ill be worse off!!! For years. Shame.
Same. In my case I actually owed a pound less after continuing payments voluntarily for a year at their suggested payment after moving abroad . I’ve remained abroad for ten years since. As long as I don’t reply for another fifteen and don’t work in the UK I’m in the clear. It divides opinion, obviously there are those who think I’m bang out of order, but after showing him the £1 deduction my dad actually came around to my way of thinking.
For those who want to do the right thing, a friend had a parent who cleared the whole thing. Another had enough savings to do it himself. Both had to fight for a year to be allowed to do so with maximum payments set at a year’s worth of debt by default and SLC equivocating on why they weren’t able to clear it. In the mean time SLC billed both for another £3k of interest.
Genuine question: can anybody explain how other countires in Europe can offer free univeristy education without a lifetime of debt attached to it?
It’s a tax rather than a loan now basically for anybody other than the mega earners.
I know people that are just earning the wrong amount to come out worse off every year and have had to take a pay cut to fall under the threshold and become better off.
Well, paying 300£ per month on a 60.000£ loan obviously wont cover the interest. Don’t they teach math anymore in school?
Ah, I recall those days well. Everyone was compelled against their will to invest in random, fixed cost degrees. To not consider future earnings prospects or employability from those degrees. To disregard any consideration of transferrable skill-sets. To remain completely and wilfully ignorant of the cost financing loans, or how they work. Then, later, having to pay them back at market-beating, highly regulated interest rates.
Tyrannical stuff, indeed.
It’s sad how few people seem to understand how student loans work in England.
This person’s debt is going to be written off. It’s the people who actually end up paying it off who are losing out. He’s just paying a graduate tax. Most won’t even end up paying back the capital they borrowed, let alone any interest.
His numbers are made up. £3600 a year would outpace interest. He’s just repeating an American meme here.
Man learns how interest works
£61.5k in 2021 is way above average. I’m curious what he spent the money on.. Certainly not maths or finance. He’s got no effin clue about inflation or what happens if you pay only the interest on your debt.
I owe electric £411 in debt, so I start paying bill plus extra 70 for debt so it can be paid off.
3 months later it was £768
Now I’m confused
I was told to basically forget it exists. It gets written off after so many years and unless you get a really high paying job, you’ll never pay it off anyway.
Dont beleive everything you read on reddit
How does that work?
What do you mean “we”? lol
This is why the country has a productivity problem.
No hope. Literally none.
And phd pays fucking 1800 a month. Minimum wage. It’s ridiculous.
Interest free while studying loan being presented as interest free loans.
Woo, just checked my own balance, which I haven’t for years. I had a £16k student loan. Have been paying it off for over 20 years. Have paid £1200 a year roughly off it, with annual interest of £370 last year. Had 12k left to pay in 2017 (last time I checked the statement!). Pleasantly surprised I have £5k left to pay, but it was “sold” to me as interest free, but the interest has been between 0.9 and 1.5% a month.
I’m lucky. Got my ‘liability to repay the loan is over’ letter recently – it’s proudly pinned on my fridge 🙂
I’ve read that it gets written off after X many years, but I’m guessing that that isn’t the case if you move abroad and go into arrears? Like have missed some monthly payments.
Im 44 and 3 years into my part time open university degree. I have never done higher education and this qualifies me immediately for student finance. I would never have been able to afford tge student fees. I am so very grateful that this country invests in tge citizens to give us the opportunity to re train – essentially backing us without a credit check or any other capitalist based filter.
Once i get my degree i will immediately start paying tge debt off as i am above the threshold, and i will do so with gratefullness and hopefully get a masters and in 10 years be making alot more money, paying higger raxes, and having a nicer car, hpliday, and cash to give my children a better life.
If you cabt see tgat this is a win win, thats a you problem.
Genuine question from someone who left school to make his way in the world at 16.
Are these loans ‘front-loaded’? ie – you pay all the interest off first, then whack through the capital? I thought these were banned in banks but maybe student loans are?
If so, you will start making rapid progress.
I left Uni over 15 years ago with ‘just’ £16k student loan debt due to only paying £1,200 a year tuition fees as I went directly from a Welsh 6th form to a Welsh Uni. I’m grateful I went when I did because I was able to pay it off within 10 years but I now dread the financial burden if my children decide to go (I will obviously support whatever their decision will be and provide as much as I can so they can follow their passion).
I am consistently amazed that there aren’t regular riots about this – it’s absolutely insane how 18 year olds are allowed to sign up to these life changing loans with almost no advice.
I was in the fortunate position I paid mine up front (I was working in a well paid job but needed the paperwork to progress, essentially) – but there were kids in my class at the beginning of the year who had absolutely no business being there and inevitably didn’t even make the end of the first term. Still got the debt, though.
An absolute racket.
And as I did both an undergrad and a separate masters, I pay nearly double. Should I achieve a salary of £90k, between £60k and £90k, approx £18k of that will go on tax and student loans. 60%. Joy.
Bot post on a bot hub
https://old.reddit.com/r/GreatBritishMemes/comments/1gta6zk/we_are_screwed/
Non-brit here. Do you guys pay tuition for higher education? Or do your student loans (for living expenses) have interest?
interests are a disease
Its very wrong, but I’ve told my daughter to view it as a student tax, that she will be paying £2-300 a month for evermore, no point worrying about paying it off.
The state should pay for x amount of key degrees a year, open to students from state school, selected on merit. Medicine, engineering, law, maybe a few serious humanities. Perhaps have a bond at the end for a certain number of years to work in the public sector.
Anyone outside this can pay.
Wait until he finds out that the return on investment for his degree was likely not worth it as well with regard to lifetime earnings. Most degrees aren’t now, so you very seriously need to look at a degree as an investment rather than following a passion/what you’re interested in (which is a tragedy in itself).
I started uni in 2007, I was told by my teachers it would be interest free. I actually read the paperwork before I signed it and discovered that it would not be interest free. However, I was also under the impression that my entire life would be a disaster if I didn’t go to university, so I did it anyway. I was annoyed that I was paying for something that students not that much older than me previously got for free, but in retrospect I’m grateful I didn’t go to university and have to borrow on any of the newer plans.
I made my final payment to SLC almost 6 years ago, but I tend to keep that quiet because I don’t know a single other one of my friends that has managed to do it. It annoys the shit out of me that this was clearly designed to push the cost of further education onto a future generation, just to make the university education rates in the UK look good. It’s devalued a degree significantly in the process, which means you now need a masters to get a foot in, which means more debt.
What is the interest rate? Studend loans should be interest-free
The interest on that student loan is close to 6 %, that is just crazy.
I think the student loans should be considered an investment for the state and the interest rates should reflect that.
I Sweden the current interest rate for a student loan is just under 2% which is reasonable with the current inflation and economic situation.
Same here, but I graduated in 2017 so my debt has ballooned
Adjust for inflation.
If you pay less back than the amount of interest that accrues each month of course it’ll go up?
It all gets written off after 30 years anyway – relaaaaaax
Yet people this generation of uni students still vote Tory
This is so strange to read as someone from Europe. I finished university 5 years ago and just got the letter for my payment plan.
Every 3 months 500€ till 2030 or if I all pay it back within the current year I will get a discount of 17%.
All together, half the money was given for free, the other half with no interest and an additional discount if you pay it back early.
If buffles my mind that a country does not invest in its youth and education. The US didn’t just stop supporting their junger people, they are actually robbing them.
They should have a required finances class for all of you highly educated folk. Aparrently intereset is beyond your comprehension.
Comments are closed.