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    This can't be correct. Can it?

    Some very rough calculations using figures from the on line guides listed below.

    Student loans are usually used to finance 4 years of a medical degree with the 5th funded by an NHS bursary (at present). So that's 4 x £9,250 tuition fees and for those students requiring the maximum award for maintenance that's 4 x £8,700 (more if studying away from home in London). So newly qualified Doctors will leave medical school with a debt of £71,800.

    https://www.nhsbsa.nhs.uk/sites/defa...e-payments.pdf

    https://www.gov.uk/student-finance/n...ltime-students

    Someone earning a salary of £50,000 would pay back their loan at a rate of £217/month. £2,604/year. After one year they would owe £71,800 - £2,604 = £69,196. As they are earning above £41,000/year interest at a rate of inflation plus 3% will be added to their remaining loan. At present inflation is calculated by student finance to be 3% so a total of 6% interest will be added to the remaining loan.

    ie £69,196 + £4,151.76 = £73,347.76. So after paying student finance for a year their overall debt has increased by £1,547.76.

    If they continue to pay back their loan at the same rate in the next year (£2,604/year) . £73,347.76 - £2,604 = £70,743.76 + £4,244.62 (6%) = £74,988.38. So after 2 years their debt has increased by £3,188.38.

    I wonder how much the average Doctor will end up paying back to Student Finance.
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    Consider yourself lucky. I'm adding 4 years of GEM onto the debt I have incurred from my first degree (which is also a four year degree).
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    (Original post by Cas22)
    This can't be correct. Can it?

    Some very rough calculations using figures from the on line guides listed below.

    Student loans are usually used to finance 4 years of a medical degree with the 5th funded by an NHS bursary (at present). So that's 4 x £9,250 tuition fees and for those students requiring the maximum award for maintenance that's 4 x £8,700 (more if studying away from home in London). So newly qualified Doctors will leave medical school with a debt of £71,800.

    https://www.nhsbsa.nhs.uk/sites/defa...e-payments.pdf

    https://www.gov.uk/student-finance/n...ltime-students

    Someone earning a salary of £50,000 would pay back their loan at a rate of £217/month. £2,604/year. After one year they would owe £71,800 - £2,604 = £69,196. As they are earning above £41,000/year interest at a rate of inflation plus 3% will be added to their remaining loan. At present inflation is calculated by student finance to be 3% so a total of 6% interest will be added to the remaining loan.

    ie £69,196 + £4,151.76 = £73,347.76. So after paying student finance for a year their overall debt has increased by £1,547.76.

    If they continue to pay back their loan at the same rate in the next year (£2,604/year) . £73,347.76 - £2,604 = £70,743.76 + £4,244.62 (6%) = £74,988.38. So after 2 years their debt has increased by £3,188.38.

    I wonder how much the average Doctor will end up paying back to Student Finance.
    I actually made a calculator for this purpose a while back. Its attached.

    Basically some doctors will pay it back, some won't. It depends whether you have career breaks and whether you work full time. All it takes is a little time out and that debt becomes uncontrollable. If you are a graduate, you should probably totally forget about ever repaying it.
    Attached Files
  1. File Type: xls Rough debt calculator.xls (22.0 KB, 20 views)
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    (Original post by nexttime)
    I actually made a calculator for this purpose a while back. Its attached.

    Basically some doctors will pay it back, some won't. It depends whether you have career breaks and whether you work full time. All it takes is a little time out and that debt becomes uncontrollable. If you are a graduate, you should probably totally forget about ever repaying it.
    Very interesting. You are better with numbers than me... I think what I found so shocking that the debt increases so rapidly and that all income over £21,000 (soon to be £25,000) is taken at a rate of 9%. Those that don't pay it back will face 30 years of substantially reduced earnings

    I found this online tool for calculating net pay -

    https://www.incometaxcalculator.org....ory=&student=1

    Someone without a student loan on a salary of £50,000 will have a net salary of £36,776. Someone with a student loan on the same salary will take home £33,873.

    £60,000 salary without a student loan gives a net of £42,576. With a student loan it's £38,373.

    £70,000 salary without a student loan gives a net of £48,376. With a student loan it's £43,657.

    When the terms of a student loan make it difficult if not impossible to pay off it is more like a tax than a loan. But a tax on the young and those who are not able to pay fees up front.
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    (Original post by Cas22)
    Very interesting. You are better with numbers than me... I think what I found so shocking that the debt increases so rapidly and that all income over £21,000 (soon to be £25,000) is taken at a rate of 9%. Those that don't pay it back will face 30 years of substantially reduced earnings

    I found this online tool for calculating net pay -

    https://www.incometaxcalculator.org....ory=&student=1

    Someone without a student loan on a salary of £50,000 will have a net salary of £36,776. Someone with a student loan on the same salary will take home £33,873.

    £60,000 salary without a student loan gives a net of £42,576. With a student loan it's £38,373.

    £70,000 salary without a student loan gives a net of £48,376. With a student loan it's £43,657.

    When the terms of a student loan make it difficult if not impossible to pay off it is more like a tax than a loan. But a tax on the young and those who are not able to pay fees up front.
    Yes it is a effectively a young person tax. One part of paying for Generation Me and their exponentially increasing care needs.
 
 
 
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