lostgirl93
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Hey! Please don’t come for me for asking such question but the thing is my parents told me they could pay my tuition fees upfront and that it’s not a problem for them so I didn’t take out the student loan for my first year of undergrad. Now I’m reading more about it and some people say it’s worth it because you could end up paying back much less than the 27k. Is that true? I am now considering taking up the loan for the remaining 2 years. I feel bad that my parents have to pay so much for the uni but at the same time I dob’t want to end up with a huge debt that with the interest added would be even bigger than 27k. What would you do in my situation? (also I’m not from the UK so I don’t 100% know the system)
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Luke Burdis
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It’s a win win for you by the sounds. But in all honesty I was mainly in the same position kinda, where I am now applying for the loan since I’ve learnt that you only pay a certain percentage back when you earn over 25K upwards. This is a small fixed fee of around £10 per month which lasts over a long period of time. So it’s give or take.
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Thisplace
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(Original post by lostgirl93)
Hey! Please don’t come for me for asking such question but the thing is my parents told me they could pay my tuition fees upfront and that it’s not a problem for them so I didn’t take out the student loan for my first year of undergrad. Now I’m reading more about it and some people say it’s worth it because you could end up paying back much less than the 27k. Is that true? I am now considering taking up the loan for the remaining 2 years. I feel bad that my parents have to pay so much for the uni but at the same time I dob’t want to end up with a huge debt that with the interest added would be even bigger than 27k. What would you do in my situation? (also I’m not from the UK so I don’t 100% know the system)
Its not worth it at all actually. . Its just a big money making scheme. . The debt that you would get from taking the loans would see you paying it back for the next 30 years. The likelihood that ur wages will increase much over those 30 years is unrealistic. That means you'll be earning money but constantly giving out a chunk every month. Because you're giving the money every month saving any money becomes that much more difficult. When your 18 and applying for uni you dont really have time to think about this. You come staright out of college with uni looking like a natural proggession but they sift over this like its not even that major.
Trust me Its Major!!
Im sure ur parents love you and want the best however they are not up to date on the current uni situation. they were looking at all their freinds who were successful after going uni back then however its a totally different landscape out there now and the oppurtunities that are on offer are not the same.
If you are in the uk have a look into apprenticeships.
You can still get ur degree. . Get paid while ur learning and have no debts.
Do an apprenticeship instead its not too late trust me
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artful_lounger
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Oh, to have such worries...
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Thisplace
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(Original post by artful_lounger)
Oh, to have such worries...
Lol
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kiqbal000
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(Original post by Thisplace)
Its not worth it at all actually. . Its just a big money making scheme. . The debt that you would get from taking the loans would see you paying it back for the next 30 years. The likelihood that ur wages will increase much over those 30 years is unrealistic. That means you'll be earning money but constantly giving out a chunk every month. Because you're giving the money every month saving any money becomes that much more difficult. When your 18 and applying for uni you dont really have time to think about this. You come staright out of college with uni looking like a natural proggession but they sift over this like its not even that major.
Trust me Its Major!!
Im sure ur parents love you and want the best however they are not up to date on the current uni situation. they were looking at all their freinds who were successful after going uni back then however its a totally different landscape out there now and the oppurtunities that are on offer are not the same.
If you are in the uk have a look into apprenticeships.
You can still get ur degree. . Get paid while ur learning and have no debts.
Do an apprenticeship instead its not too late trust me
The OP isn’t debating whether to apply for university lmao, they’re debating whether to apply for the student loan, they said they’re already in their first year of undergrad
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Thisplace
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(Original post by kiqbal000)
The OP isn’t debating whether to apply for university lmao, they’re debating whether to apply for the student loan, they said they’re already in their first year of undergrad
Yeah I know. . She needs to drop out of uni and get an apprenticeship instead
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lostgirl93
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(Original post by Thisplace)
Yeah I know. . She needs to drop out of uni and get an apprenticeship instead
I can still get an apprenticeship while at uni tho
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Thisplace
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(Original post by lostgirl93)
I can still get an apprenticeship while at uni tho
Are you sure?
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kiqbal000
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(Original post by Thisplace)
Yeah I know. . She needs to drop out of uni and get an apprenticeship instead
Not a great way to say that. It’s 100% her decision. She doesn’t ‘need’ to drop out of uni and get an apprenticeship because you’ve told her to and because you think uni isn’t worth it. What she needs to do is do what she feels is best for herself and herself only, whether it be getting a loan out and getting her degree through uni or exploring other options. You can advise her but I mean, you didn’t really do that, did you?
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Thisplace
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(Original post by kiqbal000)
Not a great way to say that. It’s 100% her decision. She doesn’t ‘need’ to drop out of uni and get an apprenticeship because you’ve told her to and because you think uni isn’t worth it. What she needs to do is do what she feels is best for herself and herself only, whether it be getting a loan out and getting her degree through uni or exploring other options. You can advise her but I mean, you didn’t really do that, did you?
My freind. . If i see someone about to walk off a cliff edge I scream Stop!.
I dont advise them one more step could lead to their death . . .
Same thing
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artful_lounger
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Anyway, with a student loan, after you graduate, if you are a PAYE worked earning above the threshold, you will make repayments towards your student loan "debt" equal to a % of your income, which is deducted automatically from your earnings each month like (and alongside) income tax, NI contributions etc. The amount will depend on your income and if you are earning near the threshold you will repay very little and so no matter what, you won't "miss" those earnings really except in abstract terms. It is essentially just a graduate tax in all but name. If you earn below the threshold (either in total, or in a given month) you won't make any repayments. Your student loan "debt" will continue accruing interest each year however, whether you are making repayments or not.

The reason I use the quotations marks around debt is because, in practice it's not like real debt. It doesn't affect your credit score, and unless you leave the country without notifying SLC (the Student Loans Company, which is the company that gives out the loans you apply to Student Finance England for), or are a self-employed worker and misreport your earnings, you will never have bailiffs banging down your door for student loan repayments. For most salaried workers it's not even something you need to think about (other than maybe sometimes looking at your monthly payslip and groaning that this month you repaid £10 or £50 or £200 or if you're an investment banker or something maybe even £500 towards your student loans that you could've used to buy X other thing).

So if you are earning just at or over the threshold, for the rest of your life, then you would be making small repayments until you retire, probably never paying off the entire sum, and possibly repaying more than you borrowed. However, because the repayments are such a small proportion of your income, and because it is proportional, it probably won't make a difference in your life either way. If you are earning significantly more, you will repay more each month, but again, since you would be earning so much then you likely won't miss the relatively smaller amount. Additionally, once you hit retirement age (or if you earn under the threshold for a set number of years) the remaining loan is written off anyway.

Essentially then, if you don't need to take out the loan there is really no benefit in doing so considering that action in isolation. Equally there is no particular downside, and you can potentially do a lot more with the lump sum funds used to pay tuition fees each year that might in fact generate money long term (e.g. using it as a deposit to purchase property). So it's really up to you and your parents. If they have that much money available to them, I would suggest a more prudent investment would be for them (or you, with that money) to purchase some property and rent it out while you are in uni and then have an owned home when you finish your degree (which you can then continue renting out, or sell it if doing so would be profitable, or indeed live there yourself). Alternately if your parents are interested they can pay my tuition fees for me
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_gcx
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It is not really "proper" debt. It's 9% off of everything over 25K and you can't default on it, no-one will come to collect on it, etc. Maintenance is generally the bigger problem and why students struggle with money.

(Original post by Thisplace)
Yeah I know. . She needs to drop out of uni and get an apprenticeship instead
The advice for everyone to get an apprenticeship is equally as useful as telling everyone to go to university. It's up to the individual. You are acting like going to university is disastrous, it really isn't.
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kiqbal000
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(Original post by Thisplace)
My freind. . If i see someone about to walk off a cliff edge I scream Stop!.
I dont advise them one more step could lead to their death . . .
Same thing
You’re joking, right? Why are you comparing going to university as the same as death.......? Bruh I’m going to uni, and I know it’s the right path for me. Everyone is different. Jeez
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ROTL94
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(Original post by kiqbal000)
You’re joking, right? Why are you comparing going to university as the same as death.......? Bruh I’m going to uni, and I know it’s the right path for me. Everyone is different. Jeez
Clearly a moron and a waste of your energy, can't even spell 'friend' or use ellipses properly.
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lostgirl93
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(Original post by Thisplace)
Its not worth it at all actually. . Its just a big money making scheme. . The debt that you would get from taking the loans would see you paying it back for the next 30 years. The likelihood that ur wages will increase much over those 30 years is unrealistic. That means you'll be earning money but constantly giving out a chunk every month. Because you're giving the money every month saving any money becomes that much more difficult. When your 18 and applying for uni you dont really have time to think about this. You come staright out of college with uni looking like a natural proggession but they sift over this like its not even that major.
Trust me Its Major!!
Im sure ur parents love you and want the best however they are not up to date on the current uni situation. they were looking at all their freinds who were successful after going uni back then however its a totally different landscape out there now and the oppurtunities that are on offer are not the same.
If you are in the uk have a look into apprenticeships.
You can still get ur degree. . Get paid while ur learning and have no debts.
Do an apprenticeship instead its not too late trust me
I get what you’re trying to say, that the degree is slowly getting less important but it STILL matters to some extent. I can still work while at uni and I think I’ll be perceived a lot better by the employers if I had a degree and some work experience
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VeritySleeps
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(Original post by lostgirl93)
Hey! Please don’t come for me for asking such question but the thing is my parents told me they could pay my tuition fees upfront and that it’s not a problem for them so I didn’t take out the student loan for my first year of undergrad. Now I’m reading more about it and some people say it’s worth it because you could end up paying back much less than the 27k. Is that true? I am now considering taking up the loan for the remaining 2 years. I feel bad that my parents have to pay so much for the uni but at the same time I dob’t want to end up with a huge debt that with the interest added would be even bigger than 27k. What would you do in my situation? (also I’m not from the UK so I don’t 100% know the system)
It's up to you. (Ignore the person about apprenticeships, they aren't equal depending on what you want to study and the uni experience is great.) You can pay it upfront and it won't matter or you can get a loan and pay a very small monthly payment. You'll probably pay less if you get the loan but you won't have to worry about losing £10 a month or so. I wouldn't worry as either way it won't matter much tbh.
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lostgirl93
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(Original post by artful_lounger)
Anyway, with a student loan, after you graduate, if you are a PAYE worked earning above the threshold, you will make repayments towards your student loan "debt" equal to a % of your income, which is deducted automatically from your earnings each month like (and alongside) income tax, NI contributions etc. The amount will depend on your income and if you are earning near the threshold you will repay very little and so no matter what, you won't "miss" those earnings really except in abstract terms. It is essentially just a graduate tax in all but name. If you earn below the threshold (either in total, or in a given month) you won't make any repayments. Your student loan "debt" will continue accruing interest each year however, whether you are making repayments or not.

The reason I use the quotations marks around debt is because, in practice it's not like real debt. It doesn't affect your credit score, and unless you leave the country without notifying SLC (the Student Loans Company, which is the company that gives out the loans you apply to Student Finance England for), or are a self-employed worker and misreport your earnings, you will never have bailiffs banging down your door for student loan repayments. For most salaried workers it's not even something you need to think about (other than maybe sometimes looking at your monthly payslip and groaning that this month you repaid £10 or £50 or £200 or if you're an investment banker or something maybe even £500 towards your student loans that you could've used to buy X other thing).

So if you are earning just at or over the threshold, for the rest of your life, then you would be making small repayments until you retire, probably never paying off the entire sum, and possibly repaying more than you borrowed. However, because the repayments are such a small proportion of your income, and because it is proportional, it probably won't make a difference in your life either way. If you are earning significantly more, you will repay more each month, but again, since you would be earning so much then you likely won't miss the relatively smaller amount. Additionally, once you hit retirement age (or if you earn under the threshold for a set number of years) the remaining loan is written off anyway.

Essentially then, if you don't need to take out the loan there is really no benefit in doing so considering that action in isolation. Equally there is no particular downside, and you can potentially do a lot more with the lump sum funds used to pay tuition fees each year that might in fact generate money long term (e.g. using it as a deposit to purchase property). So it's really up to you and your parents. If they have that much money available to them, I would suggest a more prudent investment would be for them (or you, with that money) to purchase some property and rent it out while you are in uni and then have an owned home when you finish your degree (which you can then continue renting out, or sell it if doing so would be profitable, or indeed live there yourself). Alternately if your parents are interested they can pay my tuition fees for me
Thank for the insights. What if I do leave the country?
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ajj2000
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(Original post by lostgirl93)
Thank for the insights. What if I do leave the country?
Which country/ ies might you be going to?
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lostgirl93
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(Original post by ajj2000)
Which country/ ies might you be going to?
I was thinking of doing master’s somewhere in mainland Europe - the Netherlands or Germany for example. And then I don’t know where I’m gonna end up living
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