Meh student debts are not the problem they are made out to be. Lets take this scenario. A young luv walks into the bank. Hi! can I borrow £20,000? Bank man. Yeah sure what for? luv. Mainly beer and buying a PS4. Bank Man. Sounds reasonable when would you like to pay us back? luv. When I'm earning loads would be nice, lets say 10 years time. Can't pay anything until then. Bank Man. Yeah why not, tell you what I'll chuck in a big overdraft and a student rail card and 25% off at KFC. luv. Good man, see you in ten years. luv. Oh hold on, what if I don't ever earn loads? Bank Man. We'll just write it off don't worry. luv. Sound, laters.
to be fair i don't think its the worse thing ever. What age is it that they pay it back? However the threshold isn't that high, 20k right? The thing that is scandalous is that for someone who earns a lot, they are paying a lot more back because they have sold off student loan to private companies. From interest which was at inflation they are now being charged a scandalous amount more now.
In reality there are issues but it's not a bad deal really is it? My brother in law had his written off, he simply never hit the threshold and after whatever timescale it was just gone. If you do hit the threshold I think it's key that you haven't been daft and got yourself other debts, if it's just your student loan then at that point in your life and at your wage it should be affordable.
I would hope though that it's an affordable amount as they have good jobs? Which is the point. The loan enables a student to earn a good wage it's very flexible and not the root of all evil that it is sometimes shown to be.
It should be affordable and i think the deferred payment is a good thing. I think something reasonable like 3-5k a year is okay. When you think about a sum of 27k before living + 3% tax on top of it then i think it starts to become a bit excessive. I was fortunate i got in at 1k.
With Mrs luv we just remortgaged and used the equity to pay off the remaining, once again this was all affordable because of here job.
Some of the bad changes are the accomadation costs, guess who's paying for that. We are havng to pay that in full for the first year. Less debt for him and a financial pull we have to deal with.
One's a chartered engineer, the other a doctor, so yes good jobs. The threshold is quite low about £18k, hopefully your lad will be on much more than that in his first job. It's a source of guilt if I'm honest, that we couldn't afford to pay their fees. They never talk about their student debts and have just got on with paying them back.
you shouldn't feel guilty at all. As Luv says, it's not a requirement to pay it back until you earn x amount, and if they earn x amount that they manage to pay it all back, then you've done your duty on that part that they can go and earn a living for themselves. I know i certainly won't feel guilty
We won't be able to pay ours off but will have supported them with additional money throughout Uni, you shouldn't feel guilty mate. The loans are pretty good, if I'd have walked into a bank at 18 and asked for a loan like that they'd have laughed me out of the place.
Thanks mate. They both did 'vocational' degrees so they were always going to be high earners but ... it still stings that we couldn't go the extra step and pay it all for them. As a parent you want to do everything you can for your children. We did [and are doing] the very best we can.
You're right of course. I think because my general mental health took a battering, small inadequacies/annoyances appear huge. They've [my lads] certainly never, ever talked about it. Anyway I'm sure your boy will do great. Proud dad you must be today.
