The TRUTH about STUDENT LOAN PAYMENTS - UK

Nowadays a lot of people go to university and a lot of those people apply for student finance to pay the tuition fee and living expenses.

it is important to know how student loans actually work so you don't get caught by surprise when it's time to pay.

i have made this video so you are informed of what is actually the case.

*The information in this video is good as of February 2020 and is for England and Wales only, information for Northern Ireland and Scotland differs*

Disclaimer: I am not a financial advisor, anything presented in this video is for entertainment purposes only. Only you are responsible for any financial decisions that you make.

[tomatofeind]

My friend did a 4 year uni degree, worked 2 years, met a rich guy, got married and had kids - never intends to pay another penny more! She'll just wait til it's wiped in 25 years time. Moral of the story; be a pretty girl

[GenZInvestor]

I'm from Canada, so it was great to learn how student loans work over seas! Thanks for teaching me man!

[g]

The only loan where the government can retrospectively change the conditions of the loan.

[tankthepitbull]

So blessed I got through education without debt, love my parents ❤️

[passivepete]

wow, talk about enslave the graduates. the best bit is, when you're at uni, its so easy and normal to just grab these loans (I was one of them) did 'they' see us coming or what. forget uni. just go and work then pay for studying along the way when you find something you are really interested in.

[wonglee]

I pray whoever reads this will be successful, keep fighting for success, them rich stay rich by spending like the poor and investing why the poor stay poor be spending like the rich yet not investing, Roar!! Invest, earn and be successful.

[ah]

Honestly so helpful!! I think I am much more clear headed on what to do next!! Thank you so much!

[Traps_Trades]

If only I would have thought about these things before going to college! I ended up with a little over $30, 000.00 and fortunately buckled down and paid it off as quickly as I could after graduating.

[annarichardson]

Good video. I am tired of people like Martin Lewis saying the amount of interest does not affect how much you pay. While true on a month to month basis its completely misleading. If interest rates for this guy's loan were 0%, then he would pay the £50k he orginally borrowed by year 19 of the loan, leaving him with no repayments for the last 11 years of his career - this would save him £45000.

This loan is basically just an additional rate of tax young people have to pay for their whole lives. If you had a postgraduate loan too you could be paying 15% more tax than some boomer that will likely be your boss and giving you crappy wages and bonuses, that you should be grateful for, even though they get destroyed by tax; up to 77% if you are successful in your career. Its disgusting.

[cramsa]

The income/salaries aren’t being adjusted for the DEBT LOADS… for example, in America, a skilled tradesman makes about $60, 000 about the same as a regular college graduate… but the college graduate has monthly debt payments of about $300/month on average… that’s approximately $5000 of gross tax income SO THE SKILLED TRADESMAN IS TAKING HOME MORE MONEY than the regular 4 year degree college degree person… that’s $60k vs $55 in reality…. The professionals like pharmacists, veterinarians, nurse practitioners, take home about $100-$120k a year but their debts loads are about $150-$200, 000 easily.

A MASTER PLUMBER actually takes home more money than a pharmacist or veterinarian after you factor in the monthly debt repayments… master plumbers make $80-$100k a year.

An air traffic controller is taking home more money than a pediatrician or primary care physician too… air traffic controllers require an AA at about $20, 000 total and make $120-$150/yr but a pediatrician has on average $200, 000-$250, 000 school debt but makes only 25% more than the air traffic controller… 10x the debt just to make 25-50% more doesn’t make economic sense!

[detectiverick]

I just left university after one year after I realised just how much of a scam it was

[santa]

By the way, your debt will be erased as far as the legislation continues the way it has done. If law changes on next decades, people who are not rich will be fucked.

[Derek]

There are income-driven repayment plans in the USA that work in a similar way to UK repayment, but in the USA, the remaining debt is wiped after 20 or 25 years depending on the specific income-based repayment plan.

[creativeamerican]

I went to a top Uni and got a degree… it’s been totally worthless. I’m now an Artisan Baker, had to learn a totally different trade and start again 10 years later, the Uni wants repaying… they won’t be getting a penny.

[jaketalksfinance]

Dont know how i missed your video for 2 days but im here now an great content

[beigelover]

If I could tell my 18 year old self one piece of advice, it would be to NOT GO TO UNI!!! Even though I obtained a BA and a PGCE (which allowed me to find work really easily overseas and be regarded as 'valuable' by schools here) . However, there are so many routes and now im paying so much for it.

[Blackdiamond_]

Every once in a while I get the student finance loan statement with the compound interest . I knew a friend who was trying to pay it off in lump sums say a couple thousand but as soon as they stopped the interest crept back up 🥴🥴🥴🥴 and wow 67k 🤯😳 . The interest Is like a mortgage

[thesupremepizza]

I've got 1 year left at university, and am already a little under 60000 in debt. I'm starting a full time job on the side now, and am paying for the final year myself, and will most likely spend the next 4 or 5 years living frugaly trying to pay it off. My question is at a certain point, paying it off seems useless, as intrest just negates what you put towards it. Is it worth it? If it was any other loan, it would be considered predetory, marketing it to under 18's.

[jononfirebudgetinginvestin]

Just found your YouTube channel! Loving the content! What do u use for video editing software? I dig it :)

[dedasalmeida]

This is why I'm thinking in going to apprenticeships instead of unis ...

I'm only 20, I hope made the right choice