Paying off a student loan - are degrees value for money?

Hi,

So I saw on the BBC this morning that a new study has concluded most students will still be paying back their student loans into their 40s and 50s, and many will never clear the debt before it is written off.

http://www.bbc.co.uk/news/education-26954901

High fees, high competition for graduate jobs... is a degree worth the money?

Would love to hear your thoughts - and if you have graduated recently (2009-2013) please take a few minutes to fill in this short survey on employment and internships.

https://www.surveymonkey.com/s/BQWFN5F

Thanks!

Reply 1

Tokyoround

I have no intention of paying off my student loan early, I just see it as additional tax.

Reply 2

ineedtorevise127

It depends really. If you want to be a doctor, dentist, teacher then yeah defo. But other careers I would be more cautious because nowadays every tom dick and harry has a degree I heard it was like one grad place for 90 applicants. Therefore you really need to assess your options. Would an apprenticeship be a better option if you can earn, learn qualifications and also gain experience at the same time which a degree doesnt offer. But I am thankful that UK student loan system is affordable compared to USA we are so lucky thank God

Reply 3

tomorrowtomorrow

Original post by JMAS

High fees, high competition for graduate jobs... is a degree worth the money?

If you do a worthwhile degree which is valued by employers and equips you with skills which are in demand in the workplace, then yes. Otherwise, no.

Original post by Tokyoround

I have no intention of paying off my student loan early, I just see it as additional tax.

Same. I'm pretty sure it's financially worse for you to pay it off early. If you stuck your extra cash in savings I think you earn more in interest than you'd save by not paying interest on the loan. I read about it recently.

Original post by ineedtorevise127

This.

Reply 4

Firure

I feel as though mine is, although it's only about 18k.

Reply 5

TheSilentBang

I missed the fees going up. Mine in total will be about 10K. Mwahahahaha :ahee:

Reply 6

biffyclyro27

based on my current salary it would take ~14 years, but I hope to be on significantly higher salaries in 5-10 years anyway so that number should drop. Definitely of great value to me, I wouldn't have the role I do today without the degree.

Reply 7

JMAS

Original post by TheSilentBang

I missed the fees going up. Mine in total will be about 10K. Mwahahahaha :ahee:

I'm also one of the lucky ones who missed the rise in tuition fees, and while I was fortunate to land on my feet after university (after doing a Master's in History), I have a few well-qualified friends who found the jobs market really tough when they left.

I'm particularly interested in how graduates are getting on with internships, and so I would love to gather some useful data on the subject.

(edited 10 years ago)

Reply 8

Hedgeman49

Degree was definitely worth the money for me. Wouldn't have had a problem paying the higher fees for it either

Reply 9

Tinsley

I think they definitely are value for money. Well, before 2012 for sure. Interest rate is ridiculous on new loans but, so long as there is no grad tax, I think degrees are worth it providing you have an idea of where you want to be afterwards.

Reply 10

AT06

Original post by tomorrowtomorrow

This is all dependant on your earnings as to whether it's worse to pay off early - it's all about accrued interest. As soon as you start paying back, the loan begins to accrue interest - and until the amount you pay back each year is more than the accrued interest the loan keeps getting bigger.