That is an absolutely ludicrous amount of money stacking up year on year for the vast majority that don’t have salaries high enough to clear the APR.
You wouldn’t be surprised to see the 30 year term for it to be written off to be retroactively extended either.
3% + RPI?! And theres no cap on it? Who the fuck came up with this?
Yet seemingly it’s still a struggle to get much above 1% on a savings account. Almost like the odds are stacked in someone’s favor – and it’s not ours.
An additional 12% income tax on wanting to learn. You don’t hear the Tory faithful bleating on about “they’ll go elsewhere” do you? It’s fucking class war and you know it. Tarquin won’t be taking on a loan, Mater and Pater will pay it for him but poor Steve “the first in his family to go to Uni” will be saddled with this for 30 years
I think this is only Plan 2. Plan 1 is:
> The interest rate charged is either the Retail Price Index or the Bank of England base rate plus 1%, **whichever is lower**.
I’m so glad I decided to do another degree when I’d nearly finished paying my plan 1 loan off. SO glad.
It’s just a graduate tax at this point.
I’ve been paying my loan for five years since graduating. Hilariously, I owe more money now that I did then. It’s a good feeling being shafted at every turn in every way.
I read that article earlier and one thing that surprised me was the blasé way they dropped the you pay interest while in University surprising many students.
“Many working towards their degrees don’t realise interest is being charged during their studies until they get their first statement the year after leaving university.”
no doubt they will add another 10 years worth of repayment term in 20 years’ time
It’s essentially a new income tax bracket for graduates, anyone who can or has paid off a plan 2 loan is either wealthy or landed an incredibly lucrative job.
The vast majority will never ever pay it off.
Where is the pensioners disgust at this one? Can’t see any of them here either condemning this, but we should all feel really really sorry because the pensioners didn’t get the pension increase they wanted…
Why is it going up to 12%? Just because? I couldn’t really make out from the article. Anyways, again, another massive blow to young people, one day we’ll have it good lads, one day….
My savings account has 0.05% interest,
My current account has 0% interest
But my student loans have increased to over £70,000 since I took them out. They don’t tell you you acrue interest from the day you start it, which is so farsical as no student will be able to make repayments, even after they graduate, the prospect of a high wage job before you’re 30 is reduced to specific sectors of work.
I was a history teacher, that’s an undergrad, and a post grad, to earn £24k. I’d have to teach for nearly 5 years to get to a position to pay the loans back, by which time, the loans had gone up by tens of thousands
I’m graduating this year, as i’ve done a placement year i already got an extra year of interest to screw me before i’ve started working, i calculated how much i owe considering interest and its already at 65k, and now the amount i owe is going to increase unless i pay 7k this year which is just interest?
You’d need a 110k salary to pay that…
Are you fucking serious
I’d have to pay nearly £700 **a month** to stop it from going further negative. That’s more than my rent and doesn’t even touch the principal. Fuck this country
I suspect Tories already know most students will not vote for them anyway. So there is zero point in not hammering them financially, if the student vote is already completely lost?
Keep the masses ignorant and uneducated, just how they like it.
Blimey, I’ll have to dig into this. I’m Plan 1, maybe a year away from paying it off in full, if I can clear it with a lump sum before this happens I assume that’s worth doing?
Jesus Christ. That’s obscene. For contrast, Scottish loans are calculated as the Bank of England base rate +1%. So, it’ll go up from 1.5% to 1.75% this year.
Get. The. Tories. Out.
Don’t worry guys, ww3 should be kicking off soonish, stray missile might hit the student loan corporation
I seem to be paying interest off on mine but not denting the actual debt.
Basically I lose a couple grand a year repaying the impossible until it is written off when I am middle aged.
Absurd.
The way this country treats students is terrible. It’s okay for them though because they have most likely all paid off their loans in expenses or family money or some other bullshit
Some people don’t call student loans as ‘loans’. I still don’t get the analysis how they come up with that. Isn’t this a loan you have to pay off if your income passes a bracket?
Someone is making a profit from all this – absolute disgrace!
It is worth noting there is meant to be an interest rate cap that takes into account commercial loan rates. However, meant to and what will actually be applied isn’t definitely the same.
Really don’t get the point in this ? We pay off a set amount of our salaries I think ? So even if they increase the interest we are still paying the same monthly… Correct me if I am wrong ?
Riots? Anyone?
Life under neoliberalism is sad but it is even sadder if you can’t get basic middle class comforts (eg not worrying about rent each month). This is no longer attainable. Hence, riots?
Just got to treat it as a graduate tax now. Less stressful mentally, than viewing it as actual debt you are responsible for.
Can’t wait to dip out of the UK and not pay that fucker back.
Just…… yeah.
Anyone surprised by anything they do anymore ?
This only happens when you treat education as a business
Why are the Tories doing this? Are they trying to alienate everyone? Next thing is there will be a mandatory rise on broadband to like £250 a month.
Eventually they will have fucked _everyone_
But confused by this – my student loan log in still saying it’s 1.5% or am I about to get a very nasty surprise?!
This is an obscene example of the earlier generations of University graduates pulling the ladder up after them.. first massive increases in fees and then this disgusting and punitive interest rate
Ps I’m 74 and paid minimum fees and worked bars and odd jobs to pay for it.. but THIS is a disgrace for today’s aspiring younger students
so they don’t actually expect us to pay it back, essentially?
Well I guess this answers the question as to why the survey of our recent nursing graduates showed a 31% emigration plan after qualification.
That and shit wages.
What a shitshow. To make things worse, I’d put the chances of any of that cash making its way to educational institutions to invest in their faculty and the service they provide to their students as…slim.
Really feel for anyone dealing with a Plan 2 loan…or anyone planning to start uni after 2023, where the write-off period increases from 30 to 40 years. I was lucky enough to squeeze in at the end of Plan 1, and have almost paid mine off, but I realise that’s far from the typical experience…
I couldn’t think of another songs lyrics that fit oh so perfectly with the current uk. This country is fucked.
We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika
[Strophe 1] Wenn getanzt wird, will ich führen Auch wenn ihr euch alleine dreht Lasst euch ein wenig kontrollieren Ich zeige euch, wie’s richtig geht Wir bilden einen lieben Reigen Die Freiheit spielt auf allen Geigen Musik kommt aus dem Weißen Haus Und vor Paris steht Micky Maus
[Refrain] (We’re all living in Amerika) We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika
[Strophe 2] Ich kenne Schritte die sehr nützen Und werde euch vor Fehltritt schützen Und wer nicht tanzen will am Schluss Weiß noch nicht, dass er tanzen muss Wir bilden einen lieben Reigen Ich werde euch die Richtung zeigen Nach Afrika kommt Santa Claus Und vor Paris steht Micky Maus
[Refrain] We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika We’re all living in Amerika Coca-Cola, Wonderbra We’re all living in Amerika Amerika, Amerika
[Bridge] This is not a love song This is not a love song I don’t sing my mother’s tongue No, this is not a love song [Interlude]
[Refrain] We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika We’re all living in Amerika Coca-Cola, sometimes war We’re all living in Amerika Amerika, Amerika
It’s so depressing to be working in Scotland where I’m the only graduate in my company with a SL. My repayments are only £50 less than the mortgage repayments of a colleague the same age, and I’m here renting. Fuck you England, fuck you.
I feel blessed to be on plan 1. My outstanding balance to me still looks pretty sizable (31k) after working full time as a doctor for 8 years now so I can’t imagine some of the absurd numbers some of you guys are looking at. It really does require an overhaul or at worst rebranding as a graduate tax (with some contribution of those fortunate to have parents pay upfront for degrees that also led to high paying jobs). Hopefully 5 years from now all plan 2 people are receiving PPI style phone calls and the misselling of these loans for in many cases subpar education to 17 years olds is a bit of a scandal.
A bit of clarity for everyone.
If you started university from 2012 to present:
• The interest rate you currently accrue is up to 4.5 per cent. In September it is to rise to as high 12 per cent.
• From September 2022 current students and new starters will be charged the maximum interest rate, to be announced in August, while at university.
• For graduates, interest rates are calculated using RPI +3 per cent. Those earning £49,130 or more could be charged 12 per cent interest while those paid less than £27,296 could be 9 per cent interest, with anyone in between on a sliding scale
• You don’t start repaying your loan until the April after your graduation and you’re earning more than £27,295 per year
• If you don’t start work with a graduate salary higher than £28,000, it’s unlikely you’ll pay off your full loan before it’s wiped after 30 years.
If you started university in 1998-2011, or are Scottish or Northern Irish:
• The interest rate you’re currently charged is 1.5 per cent and will likely stay at 1.5 per cent
• This is because it’s based on whichever rate is lowest out of RPI OR the Bank of England base rate, which is currently 0.5 per cent plus 1 per cent
• These student loans are repaid once graduates earn over £20,195 per year or £25,375 for Scottish students.
If you started university before 1998:
• The current interest rate is 1.5 per cent and could increase to 9 per cent from September
• It is based on the March RPI (or Prevailing Market Rate) figure alone
• Repayments are made from graduates earning over £36,284 per year
Which means those on plan 1 aren’t affected by but those before plan 1 and after it are.
Okay so I’ve ran the numbers.
If you start a career as soon as you leave uni – you need to be earning somewhere around £75,000 just to break even on interest.
If you were on less than the threshold for 10 years, and then start paying it off, you need to be earning about £150,000 p/a to break slight less than even on the interest.
41 comments
That is an absolutely ludicrous amount of money stacking up year on year for the vast majority that don’t have salaries high enough to clear the APR.
You wouldn’t be surprised to see the 30 year term for it to be written off to be retroactively extended either.
3% + RPI?! And theres no cap on it? Who the fuck came up with this?
Yet seemingly it’s still a struggle to get much above 1% on a savings account. Almost like the odds are stacked in someone’s favor – and it’s not ours.
An additional 12% income tax on wanting to learn. You don’t hear the Tory faithful bleating on about “they’ll go elsewhere” do you? It’s fucking class war and you know it. Tarquin won’t be taking on a loan, Mater and Pater will pay it for him but poor Steve “the first in his family to go to Uni” will be saddled with this for 30 years
I think this is only Plan 2. Plan 1 is:
> The interest rate charged is either the Retail Price Index or the Bank of England base rate plus 1%, **whichever is lower**.
I’m so glad I decided to do another degree when I’d nearly finished paying my plan 1 loan off. SO glad.
It’s just a graduate tax at this point.
I’ve been paying my loan for five years since graduating. Hilariously, I owe more money now that I did then. It’s a good feeling being shafted at every turn in every way.
I read that article earlier and one thing that surprised me was the blasé way they dropped the you pay interest while in University surprising many students.
“Many working towards their degrees don’t realise interest is being charged during their studies until they get their first statement the year after leaving university.”
no doubt they will add another 10 years worth of repayment term in 20 years’ time
It’s essentially a new income tax bracket for graduates, anyone who can or has paid off a plan 2 loan is either wealthy or landed an incredibly lucrative job.
The vast majority will never ever pay it off.
Where is the pensioners disgust at this one? Can’t see any of them here either condemning this, but we should all feel really really sorry because the pensioners didn’t get the pension increase they wanted…
Why is it going up to 12%? Just because? I couldn’t really make out from the article. Anyways, again, another massive blow to young people, one day we’ll have it good lads, one day….
My savings account has 0.05% interest,
My current account has 0% interest
But my student loans have increased to over £70,000 since I took them out. They don’t tell you you acrue interest from the day you start it, which is so farsical as no student will be able to make repayments, even after they graduate, the prospect of a high wage job before you’re 30 is reduced to specific sectors of work.
I was a history teacher, that’s an undergrad, and a post grad, to earn £24k. I’d have to teach for nearly 5 years to get to a position to pay the loans back, by which time, the loans had gone up by tens of thousands
I’m graduating this year, as i’ve done a placement year i already got an extra year of interest to screw me before i’ve started working, i calculated how much i owe considering interest and its already at 65k, and now the amount i owe is going to increase unless i pay 7k this year which is just interest?
You’d need a 110k salary to pay that…
Are you fucking serious
I’d have to pay nearly £700 **a month** to stop it from going further negative. That’s more than my rent and doesn’t even touch the principal. Fuck this country
I suspect Tories already know most students will not vote for them anyway. So there is zero point in not hammering them financially, if the student vote is already completely lost?
Keep the masses ignorant and uneducated, just how they like it.
Blimey, I’ll have to dig into this. I’m Plan 1, maybe a year away from paying it off in full, if I can clear it with a lump sum before this happens I assume that’s worth doing?
Jesus Christ. That’s obscene. For contrast, Scottish loans are calculated as the Bank of England base rate +1%. So, it’ll go up from 1.5% to 1.75% this year.
Get. The. Tories. Out.
Don’t worry guys, ww3 should be kicking off soonish, stray missile might hit the student loan corporation
I seem to be paying interest off on mine but not denting the actual debt.
Basically I lose a couple grand a year repaying the impossible until it is written off when I am middle aged.
Absurd.
The way this country treats students is terrible. It’s okay for them though because they have most likely all paid off their loans in expenses or family money or some other bullshit
Some people don’t call student loans as ‘loans’. I still don’t get the analysis how they come up with that. Isn’t this a loan you have to pay off if your income passes a bracket?
Someone is making a profit from all this – absolute disgrace!
It is worth noting there is meant to be an interest rate cap that takes into account commercial loan rates. However, meant to and what will actually be applied isn’t definitely the same.
https://www.gov.uk/guidance/how-interest-is-calculated-plan-2#what-is-the-interest-rate-cap
Really don’t get the point in this ? We pay off a set amount of our salaries I think ? So even if they increase the interest we are still paying the same monthly… Correct me if I am wrong ?
Riots? Anyone?
Life under neoliberalism is sad but it is even sadder if you can’t get basic middle class comforts (eg not worrying about rent each month). This is no longer attainable. Hence, riots?
Just got to treat it as a graduate tax now. Less stressful mentally, than viewing it as actual debt you are responsible for.
Can’t wait to dip out of the UK and not pay that fucker back.
Just…… yeah.
Anyone surprised by anything they do anymore ?
This only happens when you treat education as a business
Why are the Tories doing this? Are they trying to alienate everyone? Next thing is there will be a mandatory rise on broadband to like £250 a month.
Eventually they will have fucked _everyone_
But confused by this – my student loan log in still saying it’s 1.5% or am I about to get a very nasty surprise?!
This is an obscene example of the earlier generations of University graduates pulling the ladder up after them.. first massive increases in fees and then this disgusting and punitive interest rate
Ps I’m 74 and paid minimum fees and worked bars and odd jobs to pay for it.. but THIS is a disgrace for today’s aspiring younger students
so they don’t actually expect us to pay it back, essentially?
Well I guess this answers the question as to why the survey of our recent nursing graduates showed a 31% emigration plan after qualification.
That and shit wages.
What a shitshow. To make things worse, I’d put the chances of any of that cash making its way to educational institutions to invest in their faculty and the service they provide to their students as…slim.
Really feel for anyone dealing with a Plan 2 loan…or anyone planning to start uni after 2023, where the write-off period increases from 30 to 40 years. I was lucky enough to squeeze in at the end of Plan 1, and have almost paid mine off, but I realise that’s far from the typical experience…
I couldn’t think of another songs lyrics that fit oh so perfectly with the current uk. This country is fucked.
We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika
[Strophe 1] Wenn getanzt wird, will ich führen Auch wenn ihr euch alleine dreht Lasst euch ein wenig kontrollieren Ich zeige euch, wie’s richtig geht Wir bilden einen lieben Reigen Die Freiheit spielt auf allen Geigen Musik kommt aus dem Weißen Haus Und vor Paris steht Micky Maus
[Refrain] (We’re all living in Amerika) We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika
[Strophe 2] Ich kenne Schritte die sehr nützen Und werde euch vor Fehltritt schützen Und wer nicht tanzen will am Schluss Weiß noch nicht, dass er tanzen muss Wir bilden einen lieben Reigen Ich werde euch die Richtung zeigen Nach Afrika kommt Santa Claus Und vor Paris steht Micky Maus
[Refrain] We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika We’re all living in Amerika Coca-Cola, Wonderbra We’re all living in Amerika Amerika, Amerika
[Bridge] This is not a love song This is not a love song I don’t sing my mother’s tongue No, this is not a love song [Interlude]
[Refrain] We’re all living in Amerika Amerika ist wunderbar We’re all living in Amerika Amerika, Amerika We’re all living in Amerika Coca-Cola, sometimes war We’re all living in Amerika Amerika, Amerika
Publisher: https://www.translateasy.com/de/song/rammstein-amerika-deutsch-lyrics/128664
It’s so depressing to be working in Scotland where I’m the only graduate in my company with a SL. My repayments are only £50 less than the mortgage repayments of a colleague the same age, and I’m here renting. Fuck you England, fuck you.
I feel blessed to be on plan 1. My outstanding balance to me still looks pretty sizable (31k) after working full time as a doctor for 8 years now so I can’t imagine some of the absurd numbers some of you guys are looking at. It really does require an overhaul or at worst rebranding as a graduate tax (with some contribution of those fortunate to have parents pay upfront for degrees that also led to high paying jobs). Hopefully 5 years from now all plan 2 people are receiving PPI style phone calls and the misselling of these loans for in many cases subpar education to 17 years olds is a bit of a scandal.
A bit of clarity for everyone.
If you started university from 2012 to present:
• The interest rate you currently accrue is up to 4.5 per cent. In September it is to rise to as high 12 per cent.
• From September 2022 current students and new starters will be charged the maximum interest rate, to be announced in August, while at university.
• For graduates, interest rates are calculated using RPI +3 per cent. Those earning £49,130 or more could be charged 12 per cent interest while those paid less than £27,296 could be 9 per cent interest, with anyone in between on a sliding scale
• You don’t start repaying your loan until the April after your graduation and you’re earning more than £27,295 per year
• If you don’t start work with a graduate salary higher than £28,000, it’s unlikely you’ll pay off your full loan before it’s wiped after 30 years.
If you started university in 1998-2011, or are Scottish or Northern Irish:
• The interest rate you’re currently charged is 1.5 per cent and will likely stay at 1.5 per cent
• This is because it’s based on whichever rate is lowest out of RPI OR the Bank of England base rate, which is currently 0.5 per cent plus 1 per cent
• These student loans are repaid once graduates earn over £20,195 per year or £25,375 for Scottish students.
If you started university before 1998:
• The current interest rate is 1.5 per cent and could increase to 9 per cent from September
• It is based on the March RPI (or Prevailing Market Rate) figure alone
• Repayments are made from graduates earning over £36,284 per year
Which means those on plan 1 aren’t affected by but those before plan 1 and after it are.
Okay so I’ve ran the numbers.
If you start a career as soon as you leave uni – you need to be earning somewhere around £75,000 just to break even on interest.
If you were on less than the threshold for 10 years, and then start paying it off, you need to be earning about £150,000 p/a to break slight less than even on the interest.
Lmao.