Hey there! Sign in to join this conversationNew here? Join for free
    Offline

    0
    ReputationRep:
    (Original post by Quady)
    It doesn't matter how much debt you're in 1k or 10k or 20k its the same deduction from your wage.

    The point is its on deposit so you can pay it off at any time. However its also available for mortgage deposit etc if needed.
    Oh right. I assumed if you paid some off, your monthly payments would be reduced. It would still be nice to know you've paid a lump off before you even finish uni though don't ya think?

    Offline

    19
    ReputationRep:
    (Original post by seyoung1)
    Oh right. I assumed if you paid some off, your monthly payments would be reduced. It would still be nice to know you've paid a lump off before you even finish uni though don't ya think?

    Its 9% of earnings above 15k - how does that suggest monthly payments would go down?

    Not as nice as knowing its in the bank making 5% interest... but each to their own.
    Offline

    0
    ReputationRep:
    (Original post by Quady)
    Its 9% of earnings above 15k - how does that suggest monthly payments would go down?

    Not as nice as knowing its in the bank making 5% interest... but each to their own.
    I don't know im just going off what would happen with a normal loan.

    If you had 10 grand to pay off over 5 years and you paid half off straight away, your payments would be cut in half.

    I hav'nt looked into how you pay student loan back but i suppose you dont have a time limit like that so it wouldnt be the case.
    Offline

    19
    ReputationRep:
    (Original post by seyoung1)
    you dont have a time limit like that so it wouldnt be the case.
    Quite
    Offline

    0
    ReputationRep:
    (Original post by Quady)
    Quite
    But at least you wouldnt be paying it back for as long
    Offline

    19
    ReputationRep:
    (Original post by seyoung1)
    But at least you wouldnt be paying it back for as long
    But you would be poorer.

    And theres no guarantee you ever pay it off so paying it early is a gamble.
    Offline

    16
    ReputationRep:
    If people are so worried get a part time job while studying. You can pull through a good £2,000 - £2,500 easily a year(more if you work more during summer).
    Offline

    0
    ReputationRep:
    (Original post by Hana_87)
    ......or is it just me?

    I just checked my 'balance' and it's around the £27 000 mark. Sheeet. I'm going to be paying it off forever, literally. =[

    Has anyone else got anywhere near this amount? Are you worried? I wasn't until i had a proper think about it and how long it's actually going to be hanging over my shoulders for...

    Is it actually true that if you haven't paid it after 25 years they wipe it off? Or is that total crap.

    At 21 i'm £6000 in debt OVER the number of years i have even been alive! So scary :'(
    I'm not... Trust me, £27,000 will seem like pocket money when you first buy a house and have a £300,000 mortgage (if your lucky).

    To be honest, surely having a degree will add more than £27,000 to your lifetime earnings? And you had a great time?
    So it was a good idea right?

    Anyway, whats so bad about debt? Plus student debt is amazing, as you only pay an interest rate in line with inflation, so you're borrowing money for free in real terms.
    Offline

    0
    ReputationRep:
    (Original post by becca2389)
    Nope. Further good times.
    You do realise that the interest on student loans = inflation rate so your actually paying no interest in real terms?
    Offline

    9
    ReputationRep:
    Meh, whatever happens happens...

    If we weren't at Uni now we'd be out in the real world trying to get a job in an era where people aren't really hiring anyone and still be worrying about lack of money.
    We COULD worry about student debt now, or enjoy the rest of our years at Uni hoping everything will blow over once we get out or that hopefully 3/4 years of hard work will pay off in the end.
    • Thread Starter
    Offline

    1
    ReputationRep:
    Thanks for making me feel a bit better guys
    Offline

    19
    ReputationRep:
    (Original post by hey guysch im kl)
    You do realise that the interest on student loans = inflation rate so your actually paying no interest in real terms?
    You are if RPI is higher than CPI.

    and that doesn't apply for the year 09/10 when they have broken the system.
    Offline

    19
    ReputationRep:
    (Original post by hey guysch im kl)
    I'm not... Trust me, £27,000 will seem like pocket money when you first buy a house and have a £300,000 mortgage (if your lucky).

    To be honest, surely having a degree will add more than £27,000 to your lifetime earnings? And you had a great time?
    So it was a good idea right?

    Anyway, whats so bad about debt? Plus student debt is amazing, as you only pay an interest rate in line with inflation, so you're borrowing money for free in real terms.
    300k mortgage? Wait until you're on 75k before getting your first house?

    a 350k first house?

    Cunningly ignored loss of earnings there...
    Offline

    0
    ReputationRep:
    (Original post by Quady)
    You are if RPI is higher than CPI.

    and that doesn't apply for the year 09/10 when they have broken the system.
    No, you're assuming that RPI impacts on you less than CPI which is stupid, as CPI doesn't include housing costs
    Offline

    0
    ReputationRep:
    (Original post by Quady)
    300k mortgage? Wait until you're on 75k before getting your first house?

    a 350k first house?

    Cunningly ignored loss of earnings there...
    Sorry, I didn't realise that you lived up north, but here in the south east houses are pretty expensive.

    Sure, but tbh a year on the minimum wage pays £10k. Maybe you could get £15k a year, but its hardly a staggering amount
    Offline

    19
    ReputationRep:
    (Original post by hey guysch im kl)
    No, you're assuming that RPI impacts on you less than CPI which is stupid, as CPI doesn't include housing costs
    No I'm assuming the BoE targets CPI not RPI when setting the cost of money. Why it isn't just BoE rate I'll never know...
    Offline

    0
    ReputationRep:
    (Original post by Quady)
    No I'm assuming the BoE targets CPI not RPI when setting the cost of money. Why it isn't just BoE rate I'll never know...
    Because inflation is calculated by the National Office of Statistics, not the Bank. There are many different measures for inflation.

    Yes the Bank does target CPI, but that doesn't mean that its closer to any individual's spending habits than the RPI:rolleyes:
    Offline

    19
    ReputationRep:
    (Original post by hey guysch im kl)
    Sorry, I didn't realise that you lived up north, but here in the south east houses are pretty expensive.

    Sure, but tbh a year on the minimum wage pays £10k. Maybe you could get £15k a year, but its hardly a staggering amount
    Well the UK average is between 150 and 160k based on mortgages taken out by people from nationwide/halifax.

    In the south east you can get a new three bed home for 200k, 350k would be a good four bed. In London a two bed apartment. Is that really a first home?

    Well its 45k and with A levels I'd say you could average 16-17.
    Offline

    19
    ReputationRep:
    (Original post by hey guysch im kl)
    Because inflation is calculated by the National Office of Statistics, not the Bank. There are many different measures for inflation.

    Yes the Bank does target CPI, but that doesn't mean that its closer to any individual's spending habits than the RPI:rolleyes:
    I fairly obviously meant the 'Bank of England Base Rate' since thats the official cost of money.

    No it doesn't but there are good reasons why it targets CPI.

    Meh, they are ignoring it next year for convince anyhow.
    Offline

    0
    ReputationRep:
    (Original post by Quady)
    Well the UK average is between 150 and 160k based on mortgages taken out by people from nationwide/halifax.

    In the south east you can get a new three bed home for 200k, 350k would be a good four bed. In London a two bed apartment. Is that really a first home?
    Well its 45k and with A levels I'd say you could average 16-17.
    If you want to stay in the area indefinitely, getting a large a mortgage as possible would be the best idea, as houses historically have shown to gain a lot of value in percentage terms
 
 
 
Poll
Do you agree with the PM's proposal to cut tuition fees for some courses?
Useful resources
Uni match

Applying to uni?

Our tool will help you find the perfect course

Articles:

Debate and current affairs guidelinesDebate and current affairs wiki

Quick link:

Educational debate unanswered threads

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.