Student loans: ‘I borrowed £44,000 for university and now owe £54,000’
September 16, 2024
Student loans: ‘I borrowed £44,000 for university and now owe £54,000’
https://www.bbc.co.uk/news/articles/cvg3g8wpwwqo
by TheScapeQuest
11 comments
The BBC tries to explain Plan 2 loans, but they state this:
> Student debt does not affect a graduate’s credit score
While technically correct, credit score in the UK is just an indicator of credit worthiness, it’s more of a marketing opportunity for credit reference agencies. Importantly, a student loan **does** affect your likelihood to access credit in many situations like a mortgage, and we need to stop pretending like student loans don’t affect your finances significantly.
The current student loan system is broken. Graduates are struggling under mounting debt with no end in sight. It’s time for serious changes.
It’s a graduate tax. You will never pay it off.
I think if we changed to a graduate tax system then the private companies won’t make as much money, and people will argue better jobs at the end of the process.
Either introduce a graduate tax or fully fund education. This middle of the road stuff is just beyond a joke.
As much as people like Martin Lewis and various governments insist it shouldn’t be seen as debt, it absolutely is and impacts so much of your life.
Student loan repayment is the worst of all worlds. If you earn too little you never pay it back, the exchequer has to eat the loss. If you earn a mint you can pay it all back quickly meaning you pay less overall. But if you’re in the middle you end up caught in a debt-interest trap that punishes middle-income earners. Add that de-facto 9% tax burden to the 40% tax bracket and the nonsense with the child benefit cliff, and it gets truly ridiculous.
lol I borrowed 60k in 2015 (graduated 2019) After working for every year since I graduated, saving up £10k to throw at it since interest rates have been so high, I now owe….. £70k … Amazing. Interest rates are around 7.1% btw
When I had my student loan, I was working minimum wage.
Once I managed to save like £500 to pay it, and then after paying. the remaining balance was the same starting balance. So it made no difference at all.
Later on I managed to pay, but it was ridiculous
The “best” part of the student loan system is that despite it being “interest free”, only going up with inflation, it doesn’t go down with deflation. Go figure!
Borrowed 18k in 2012 was overpaying by a bit last month I’ve finished paying it off. So not everyone like stated here is having it written off after 30 years.
I’ll never pay it off, and I did 4 years with that one “gift” year. I’m just waiting 30 years to “pay it off” until it gets forgiven
Ah yes, the great student loans myths strike again.
11 comments
The BBC tries to explain Plan 2 loans, but they state this:
> Student debt does not affect a graduate’s credit score
While technically correct, credit score in the UK is just an indicator of credit worthiness, it’s more of a marketing opportunity for credit reference agencies. Importantly, a student loan **does** affect your likelihood to access credit in many situations like a mortgage, and we need to stop pretending like student loans don’t affect your finances significantly.
The current student loan system is broken. Graduates are struggling under mounting debt with no end in sight. It’s time for serious changes.
It’s a graduate tax. You will never pay it off.
I think if we changed to a graduate tax system then the private companies won’t make as much money, and people will argue better jobs at the end of the process.
Either introduce a graduate tax or fully fund education. This middle of the road stuff is just beyond a joke.
As much as people like Martin Lewis and various governments insist it shouldn’t be seen as debt, it absolutely is and impacts so much of your life.
Student loan repayment is the worst of all worlds. If you earn too little you never pay it back, the exchequer has to eat the loss. If you earn a mint you can pay it all back quickly meaning you pay less overall. But if you’re in the middle you end up caught in a debt-interest trap that punishes middle-income earners. Add that de-facto 9% tax burden to the 40% tax bracket and the nonsense with the child benefit cliff, and it gets truly ridiculous.
lol I borrowed 60k in 2015 (graduated 2019)
After working for every year since I graduated, saving up £10k to throw at it since interest rates have been so high, I now owe….. £70k …
Amazing. Interest rates are around 7.1% btw
When I had my student loan, I was working minimum wage.
Once I managed to save like £500 to pay it, and then after paying. the remaining balance was the same starting balance. So it made no difference at all.
Later on I managed to pay, but it was ridiculous
The “best” part of the student loan system is that despite it being “interest free”, only going up with inflation, it doesn’t go down with deflation. Go figure!
Borrowed 18k in 2012 was overpaying by a bit last month I’ve finished paying it off. So not everyone like stated here is having it written off after 30 years.
I’ll never pay it off, and I did 4 years with that one “gift” year. I’m just waiting 30 years to “pay it off” until it gets forgiven
Ah yes, the great student loans myths strike again.