I've been on the student calculator site for repayment and the interest rates gave me a fright, about even becoming a student with massive debt.
I presumed some input values about my prospect of being a student with 3 years worth of debt.
If I borrowed £9000 per year for 3 years, and £1000 for maintenance,
and assumed my earnings would be £18000 after graduation,
My repayment would be this
YearLoan AmountAnnual RepaymentAnnual Interest Rate0£33,423£02.5%1£34,258£0 2.5%2£35,115£902.63%3£35,946 £3282.94%4Â£36,671Â£5373.19%5Â£3 7,296Â£7903.47%6Â£37,789Â£1,0103 .69%7Â£38,157Â£1,2073.87%8Â£38,4 04Â£1,4634.08%9Â£38,483Â£1,6184. 18%10Â£38,442Â£1,7994.29%11Â£38, 257Â£1,9284.34%12Â£37,949Â£2,081 4.4%13Â£37,496Â£2,2274.45%14Â£36 ,891Â£2,3064.43%15Â£36,173Â£2,44 74.46%16Â£35,290Â£2,6564.54%17Â£ 34,181Â£2,7954.56%18Â£32,885Â£2, 7624.45%19Â£31,529Â£2,9074.46%20 Â£29,970Â£3,0834.49%21Â£28,170Â£ 3,3204.56%22Â£26,065Â£3,4664.56% 23Â£23,714Â£3,6744.59%24Â£21,051 Â£4,0084.68%25Â£17,944Â£3,9744.5 7%26Â£14,707Â£4,2434.62%27Â£11,0 54Â£4,6924.74%28Â£6,785Â£4,8994. 74%29Â£2,103Â£2,1264.76%Interest is included in the calculation above:Retail Price
Index (RPI)2.5%+interest rate based
on your salary0%=2.5%
What worries me is how much I would be paying by Year 28, Â£5000 a year would be a hefty chunk.
Are these percentages taken off your salary linked to a proportion of whatever level you are earning?
Let's say I am earning less that predicted salary for a graduate with 28 years work experience, would I be expected to still pay that Â£5000 per year return at Year 28, or this is table just a guideline of what would ideally be paid back in ideal situations.
After nearly 30 years, I'd be paying back more than 100% of what I borrowed
Worrying about repayment Watch
- Thread Starter
- 04-03-2016 17:39
Mark Lee - SFE Official Adviser
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- Official TSR Representative
- 21-03-2016 11:40
I would advise you to look at the student loan repayments website: http://bit.ly/1kg0AGq
The time it takes to pay off the loan will depend on your salary. The interest rate (for plan 2) is also RPI + 3% so will depend on the RPI.