Student loan is scary"

My daughter is looking to do a do a 4 year language degree so this morning I looked at the costs etc and what a fright.
On the assumption that fees do not rise and that the RPI remains at 3.1% this is what I calculated the cost for the fees ONLY.
Year 1: £9250 and cost of 3.1% = £9536.75
Year 2: £9536.75 + £9250 = £18786.75 + 3.1% = £19369.14
Year 3: £19369.14 + £1387.50 (15% of fees payable when studying abroad) = ££20756.64 + 3.1% = £21,400.10
Year 4: £21,400.10 + £9250 = £30,650.10 + 3.1% = £30,600.25

Until April after you graduate the interest is RPI 3.1% for 2017/18 but is variable and thereafter it will be RPI + 3% added each year and for 2017/18 this 6.1%.
The interest would jump to £1866 the first year and unless she walks into a job of about £40,733.34 she would not be able to repay any actual loan and interest is added onto interest.
To repay £1866 per year at todays rates the repayment from her salary would need to be £155.50 pm just to stand still and any future mortgage / loan would be reduced due to the repayments.
The money that many will pay will be eyeeatering by the time you are 50 and will still 'owe' momey that will be 'written off'

I truely feel that todays students are being punished yet Are the UK's future.

My daughter is looking to do a do a 4 year language degree so this morning I looked at the costs etc and what a fright.
On the assumption that fees do not rise and that the RPI remains at 3.1% this is what I calculated the cost for the fees ONLY.
Year 1: £9250 and cost of 3.1% = £9536.75
Year 2: £9536.75 + £9250 = £18786.75 + 3.1% = £19369.14
Year 3: £19369.14 + £1387.50 (15% of fees payable when studying abroad) = ££20756.64 + 3.1% = £21,400.10
Year 4: £21,400.10 + £9250 = £30,650.10 + 3.1% = £30,600.25

Until April after you graduate the interest is RPI 3.1% for 2017/18 but is variable https://www.thestudentroom.co.uk/showthread.php?t=5008742&page=3and thereafter it will be RPI + 3% added each year and for 2017/18 this 6.1%.
The interest would jump to £1866 the first year and unless she walks into a job of about £40,733.34 she would not be able to repay any actual loan and interest is added onto interest.
To repay £1866 per year at todays rates the repayment from her salary would need to be £155.50 pm just to stand still and any future mortgage / loan would be reduced due to the repayments.
The money that many will pay will be eyeeatering by the time you are 50 and will still 'owe' momey that will be 'written off'

I truely feel that todays students are being punished yet Are the UK's future.

You've done the math. You could learn several languages for that price privately and still have half to put into an index fund paying dividends of 10%+

The juice simply isn't worth the squeeze as your daughter will inevitably find out after graduating.

If you see it as a graduate tax then it seems much less harmful. Also both myself and my husband have students loans and we've looked at a couple of AIP's for mortgages recently, as the payments are so low for him and nothing for me, it's doing next to no harm to our chances if any of getting a mortgage. You have to earn over 30k a year to even pay 1k back a year,i think you'd need a starting salary of above 45k to have any chance of paying the whole things back.
Take a look at this article and it wont seem anywhere near as scary.
http://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes#multiThree

Link to such things?

Link to more to diversify

Historic dividend yield 1.6%

Unless you mean capital growth, but as with any investment like this past performance is no guarantee of future performance...

Year 2: £9536.75 + £9250 = £18786.75 + 3.1% = £19369.14

.

why did you put this for Year 2?

Cumulative debt.

(It's ignoring the maintenance loan though)

Cumulative debt.

(It's ignoring the maintenance loan though)

Did not continue as I felt quite depressed.