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Does it matter how much student debt you have?

If you have £30,000 of debt or £60,000, does it even matter?

Considering the interest rate is 6.3% (+£1890 interest per year if your initial debt is £30,000), it seems the debt will grow at a rapid rate - in effect making it impossible to pay off.

With this in mind, would it be sensible to take out the maximum loan possible and use it towards other things, such as a deposit on a house or an unpaid internship?

I hate the idea of having such a huge debt, but it seems no one will ever pay it off unless you're on a huge income.
Original post by hellooworld
If you have £30,000 of debt or £60,000, does it even matter?

Considering the interest rate is 6.3% (+£1890 interest per year if your initial debt is £30,000), it seems the debt will grow at a rapid rate - in effect making it impossible to pay off.

With this in mind, would it be sensible to take out the maximum loan possible and use it towards other things, such as a deposit on a house or an unpaid internship?

I hate the idea of having such a huge debt, but it seems no one will ever pay it off unless you're on a huge income.


The GOV hit on the problem that interest rates would seriously ruin this £9000 system a few months back. So barley anyone will pay back the debt. I don't think I'd risk a maximum loan as its more to pay back and with interest increasing it will (GOV) increase the current 9% each month off your salary. I'd keep an eye on your overdraft that's the thing to watch out for. Its stupid getting people to pay about 10 years ago u could go free & get grants:/
Reply 2
Avatar for Simes
Simes
16
I'm studying as a mature student and I know I'll be dead before I pay off my student loan interest. I think the idea now is (and probably always was) that anyone who goes to uni will be paying this off for ever as a way of raising tax revenue, unless you go off to be a banker or something else earning silly money.
Reply 3
Avatar for alexsmh
alexsmh
I would say it's unlikely to matter, especially since it is eventually written off anyway. Idk.. what do others think?
Whether you owe £100,000 or £100 the percentage taken off your wages is the same. It's just that the more you owe the later you finish paying it back and thus the more likely you are to never pay it all back.
Original post by Simes
I'm studying as a mature student and I know I'll be dead before I pay off my student loan interest. I think the idea now is (and probably always was) that anyone who goes to uni will be paying this off for ever as a way of raising tax revenue, unless you go off to be a banker or something else earning silly money.


How much do you think bankers earn?
No most people never pay it off. I wish uni was still free though.
Original post by SmallTownGirl
thus the more likely you are to never pay it all back.


Me


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