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Student Finance for Medicine watch

1. 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.
2. 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).
3. (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
4. Rough debt calculator.xls (22.0 KB, 20 views)
5. (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.
6. (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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