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The interest repayments on the student loans are frightening ... watch

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    I dont worry about it because you just have to accept that youll be paying a portion of your wages to sf for 30 years. It doesnt matter if the interest is high or low as its not going to make a difference. They arent going to change the amount they demand back, infact the repayments have gotten kinder so dont worry your education and future employment is worth it
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    (Original post by jneill)
    Which it is. Most mortgages are 25 years.

    Except it's better than a mortgage... mortgages don't get written off unless you become bankrupt, and student loans don't get factored into future loan requests (e.g. asking for a mortgage, except for the repayment affordability point of view).
    Oh I definitely understand it's better than a mortgage. I just think that telling people they won't pay it off after 30 years as a positive is strange. I've heard it in a few talks. There's a difference between saying it's written off after 30 years and saying you probably will need it written off.
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    (Original post by chickenonsteroids)
    Oh I definitely understand it's better than a mortgage. I just think that telling people they won't pay it off after 30 years as a positive is strange. I've heard it in a few talks. There's a difference between saying it's written off after 30 years and saying you probably will need it written off.
    Yes, that's fair comment. Although the research is expecting that a very significant proportion won't pay it off.

    http://www.independent.co.uk/news/ed...t-9866446.html

    But, I agree, giving current students the expectation they won't pay it off is probably a bad thing... they should obviously be aspiring to earning enough to do so.
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    (Original post by VergeofInsanity)
    Is it not 25 years?
    25 for those from Northern Ireland.
    30 for those elsewhere 😎


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    (Original post by Duncan2012)
    When did you take out the loan? Assuming you're a new student you won't have accrued £150 in interest on a £4000 loan in a couple of months. I suspect there's something wrong with your figures.
    May as well get a payday loan with his figures
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    (Original post by Duncan2012)
    When did you take out the loan? Assuming you're a new student you won't have accrued £150 in interest on a £4000 loan in a couple of months. I suspect there's something wrong with your figures.
    I think you maybe misread what I said. I meant that I had accumulated £150 interest for year 1 total, not for a month or two. I just logged in a month or so ago.
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    (Original post by Keyhofi)
    Hi OP,

    This article sums up the three different types of loans (from different time periods) nicely and allows you to compare them.
    http://www.moneysavingexpert.com/stu...nt-loans-repay

    As you can see, your 2009 loan is only gaining interest with inflation (RPI). The more modern of your loans is gaining inflation + 3%, or 5.5% currently. This is set to drop to 3.9% from this month though.

    At the bottom of the article is a calculator to know how long it will take you to pay it all back. I do not think these new loans are expected to be paid back in 99.9% of cases though.

    Your old loan expires after 25 years, and your new one after 30 years.

    Hope that helps
    'I do not think these new loans are expected to be paid back in 99.9% of cases though.'

    You mean the principal or the interest? Or both?

    The thing I don't get is say if you earn 41k for the 30 year period. You will pay 1.8k per year which is 54k over the 30 years.

    So unless I'm missing something, if you earn 41k then you will end up paying back ALL of the principal + interest. What is good in that?
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    (Original post by VergeofInsanity)
    'I do not think these new loans are expected to be paid back in 99.9% of cases though.'

    You mean the principal or the interest? Or both?

    The thing I don't get is say if you earn 41k for the 30 year period. You will pay 1.8k per year which is 54k over the 30 years.

    So unless I'm missing something, if you earn 41k then you will end up paying back ALL of the principal + interest. What is good in that?
    Are you really going to be earning 41k that quickly though? Most people, especially though who don't do STEM, are not even going to come close to averaging a 41k salary.
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    (Original post by VergeofInsanity)
    So unless I'm missing something, if you earn 41k then you will end up paying back ALL of the principal + interest. What is good in that?
    The good in that is you've earned a good salary (in part due to your degree), and now you've paid for your education. And now you can use the amount you had been paying off every month for something else entirely.

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    The interest is so high because of 2/3 do not earn enough to pay back. They should lower the threshold to £10k and reduce the interest rate.
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    (Original post by Keyhofi)
    Are you really going to be earning 41k that quickly though? Most people, especially though who don't do STEM, are not even going to come close to averaging a 41k salary.
    I won't earn it straight away but I would think in 5-10 years I would be on that. When I look at it like that it seems better to pay it all off somehow. Argh so confusing.

    What is STEM?
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    (Original post by VergeofInsanity)
    I won't earn it straight away but I would think in 5-10 years I would be on that. When I look at it like that it seems better to pay it all off somehow. Argh so confusing.

    What is STEM?
    STEM is Science Technology Engineering Maths. Those and subjects related to STEM are basically the best paid as they are in the most demand. Non-STEM graduates usually have a lot of trouble even finding a job as the markets are oversaturated.

    I studied physics and I'm on the equilvalent of about £26-27k (I'm on a doctorate scholarship, so my pay is a little weird to convert). When I earn this doctorate in four years from now I will be looking at £30k jobs, although with inflation this will actually be higher by the time I look - probably more like £33-34k. Some of the more optimistic people on my doctorate scheme are going to go for £40k+, but I feel like they are pushing their luck a bit.
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    (Original post by VergeofInsanity)
    I won't earn it straight away but I would think in 5-10 years I would be on that. When I look at it like that it seems better to pay it all off somehow. Argh so confusing.

    What is STEM?
    Science Technology Engineering and Maths - the techie subjects.
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    (Original post by Keyhofi)
    STEM is Science Technology Engineering Maths. Those and subjects related to STEM are basically the best paid as they are in the most demand. Non-STEM graduates usually have a lot of trouble even finding a job as the markets are oversaturated.

    I studied physics and I'm on the equilvalent of about £26-27k (I'm on a doctorate scholarship, so my pay is a little weird to convert). When I earn this doctorate in four years from now I will be looking at £30k jobs, although with inflation this will actually be higher by the time I look - probably more like £33-34k. Some of the more optimistic people on my doctorate scheme are going to go for £40k+, but I feel like they are pushing their luck a bit.
    Academics/researchers are appallingly paid...

    Go into the private sector for good pay.
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    (Original post by jneill)
    Academics/researchers are appallingly paid...

    Go into the private sector for good pay.
    I'm not so sure. I consider a £30k salary for a young single adult living outside of London to be very good. Heck, even in London that is a decent wage.
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    (Original post by Keyhofi)
    I'm not so sure. I consider a £30k salary for a young single adult living outside of London to be very good. Heck, even in London that is a decent wage.
    Dont get me wrong - thats fair pay (and probably better pension etc than private sector) but pay is generally higher in the private sector. e.g. R&D posts in multi-nationals.
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    I earned £1700 last month and my SF repayment was £27. Not onerous if you take it one month at a time.
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    (Original post by jneill)
    Dont get me wrong - thats fair pay (and probably better pension etc than private sector) but pay is generally higher in the private sector. e.g. R&D posts in multi-nationals.
    Oh yeah definitely. But when you're on a decent wage you should be focusing more on job and life satisfaction than getting the top money. Only if you're short on money should you aim for more.
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    (Original post by Keyhofi)
    Oh yeah definitely. But when you're on a decent wage you should be focusing more on job and life satisfaction than getting the top money. Only if you're short on money should you aim for more.
    :thumbsup:
 
 
 
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