Student debt
Some of my students are concerned about the amount of debt they'll have once finishing their studies - what would you say are the best arguments for taking this debt on actually are?
Original post by JohnRodgers
Some of my students are concerned about the amount of debt they'll have once finishing their studies - what would you say are the best arguments for taking this debt on actually are?
That its not debt since you don't have to pay it back?
That, if they worry about paying higher or top rate tax?
The, if they are good enough to go to uni anyway if they don't understand how it works?
Original post by Quady
That its not debt since you don't have to pay it back?
It's a loan - of course you have to pay it back. As soon as you start earning over £16,300 you have to start paying your student loan back. As you earn more, the more money you pay back each month.
Original post by aoxa
It's a loan - of course you have to pay it back. As soon as you start earning over £16,300 you have to start paying your student loan back. As you earn more, the more money you pay back each month.
Oh ok.
So if I get a minimum wage job (circa £13k), when do I pay it back?
Original post by JohnRodgers
Some of my students are concerned about the amount of debt they'll have once finishing their studies - what would you say are the best arguments for taking this debt on actually are?
Hi John, we know that for many students and their families the thought of taking out loans can be daunting but we always emphasise the key features of the loan, namely that students won’t have to repay their loan until they’ve left university or college and their income is over £21,000 a year. They’ll then repay 9% of their income over this threshold so the more they earn the more they contribute. If their income drops below this, repayments stop automatically. Also, any loan left 30 years after entering repayment will be cancelled.
Original post by Quady
Oh ok.
So if I get a minimum wage job (circa £13k), when do I pay it back?
So if I get a minimum wage job (circa £13k), when do I pay it back?
You wouldn't repay anything until your income is over £21k
J
I think what it means that it's not like a loan with a bank where they will come after you for the money and involve the courts like you see on debt programs and it's not like a loan that affects credit rating or getting a mortgage/government benefits.
Posted from TSR Mobile
Posted from TSR Mobile
Original post by iloveteddy14
I think what it means that it's not like a loan with a bank where they will come after you for the money and involve the courts like you see on debt programs and it's not like a loan that affects credit rating or getting a mortgage/government benefits.
Posted from TSR Mobile
Posted from TSR Mobile
That's correct. For those who move into employment, student loan repayments will be calculated by their employer, taken directly from the salary then, at the end of the tax year, sent to HM Revenue and Customs(HMRC).
Also, student loans are unsecured government lending and are very different to commercial loans. They don’t go on credit files or show up on credit checks. Student loan repayments now have to be included as ‘committed expenditure’ in mortgage applications. While this may effect how much a graduate can borrow, it doesn’t mean they can’t or won’t be able to successfully secure a mortgage
Quick Reply
Related discussions
- I'm thinking of taking out a bank loan
- Removing flag from SLE account Erudio
- UK Medical School Debt is about £184.5k over 30 years
- Im a scottish student heading to study in England
- Is it bad if your student loan gets written off?
- Student Debt - Can you avoid it?
- Help
- Stuck at university, can't afford to leave?!
- Cost of a 6 years medicine degree
- Architecture degree or apprenticeship??
- student finance query
- Shrouded In Shame
- is open uni advisable?
- PhD or doctorate
- Is not taking the maintenance loan silly?
- Funding & Loans / Debt - MPhil
- Is going to uni in London worth it creative courses?
- Dropping out one week into university
- Should I go to Uni?
- Nursing degree funding
Latest
Trending
Last reply 2 weeks ago
Can i receive student finance while on Universal credit and PIP?Posted 1 month ago
Student Finance ineligible, dubious reasons , re-evaluation and appealsLast reply 1 month ago
2024 applicants: do you understand how student finance works?Last reply 1 month ago
withdrawn from university due to non payment of tuition feesTrending
Last reply 2 weeks ago
Can i receive student finance while on Universal credit and PIP?Posted 1 month ago
Student Finance ineligible, dubious reasons , re-evaluation and appealsLast reply 1 month ago
2024 applicants: do you understand how student finance works?Last reply 1 month ago
withdrawn from university due to non payment of tuition fees
