Student loan repayments are completely unfair

I’m on a Plan 1 replacement but post 2006 so mine does have an end point in sight. So I’m one of the lucky ones. Still 11 years though. I’ve worked full time since graduating in a job I needed a degree to do but just in a low paid sector. I think in 15 years I’ve paid off about £2.5K. The compound interest on my student loan seems to be doing a lot better than the compound interest on my pension pots!

I’m at a stage in my career where my repayment is manageable. To clear my loan quicker, I’d need to get move up the career ladder but any jumps in salary and my repayment will be quite big. But it would apparently clear it in about 5 years. I feel like I need to make a big jump, suffer the short term pain for the long term gain.

It’s a discriminatory policy. It negatively affects women who may take an extended period of absence from the workforce to have children, sometimes multiple leaves of absence and may reduce their hours after. The repayments work for those in finance or law who can quickly be on a higher wage and move through the salary brackets quickly but not really for anyone else. It’s also only taken out by those from working class backgrounds.

I wouldn’t mind a graduate tax because at least then it would be a level playing field.

I have a plan 1 and a plan 2. They are both gathering interest at a faster rate that they are being paid back. I do look on it as a graduate tax as I don't have to pay it if I stop work.

It is the amount of interest that is added that is tough. As neither will ever be paid off- but will be written off eventually. I am not a huge earner so payments are manageable, but it does mean it is just increasing

They need to look at reducing the interest rates and they would stand a chance being reduced.

One thing, if I had two part time jobs I wouldn't need to pay it back. As they don't combine incomes

I have been teaching for 19 years, with some part time and mat leave. I had an original plan 1 and still owe the same amount I started with. I might be able to pay it off in the next 5 years.

It is a massively unfair thing if you cannot progress quickly.

I took a student loan to do my teacher training. I triggered the repayments after a year or two... But at that point also triggered the interest which surpassed the payments.

And so 9k became 11k.... I continued to progress and am now eating away at it. But if you don't have that assurance of a higher pay scale you are f**ked.

I am on plan 1 (I think... loan taken out in 1999).
I have probably payed back a total of about £30 over the years. I dropped out my course, but the debt is still hanging over me.
I don't even know what I owe as I can't log in to my account, as I had the loan pre-internet.

I’ve never earned enough to pay my plan 4 one back, I have about 8 years before it’s written off. They take money when I get my bonus then offer me a refund when they get my p60. When I called about my rent d the guy said ‘ you know this balance goes back into the overall amount owed?’ Yep give me my £90 please.

Totally agree.
Signing 18 year olds up to lifetime of debt is unconscionable.
There needs to be a lot less universities and a lot more on the job apprenticeships.

I work in education, and hosted student finance talks. The speaker was often a university rep or someone from the ‘student finance roadshow’.

Those talks always talked about compounding interest.
I do think they need to be reviewed though , but I’m not sure a shorter mortgage style loan is the answer

I’m sure Martin Lewis meant well but he didn’t half bang on about they were nothing to be concerned about
The freezing of the threshold plus ridiculous interest is a hideous trap - these students have been shafted

All the student loans are fucking outrageous. As you say plan 2 and the original plan 1 especially.

Seems very unfair and makes university an unattractive option