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Original poster

To not class student loan as ‘real debt’

81 replies

Mamamamamm · 16/03/2026 19:25

I read a story recently of someone saying about the interest on student loans and that they went up to £40k a year and it meant more interest was being added on to their student loans so they were no closer to paying it off. They said they had sat their children down and said that they should really think about if they really wanted to go to university because of the amount of debt.

Now, let’s forget about the principle of it - that it costs so much yet you’re training so you can contribute to society etc. But , you only pay the monthly payments once you’re earning over a certain amount . The amount you pay also depends on what you earn. So for example , I am on just under £30k so pay £7 per month , I’m due a promotion that will take me to £40k and it will go up to £86 per month -but , I’ll be getting an extra £500 per month in my take home so it won’t affect me really as it’s just like tax , NI - it’s going before you get your take home and nothing you can do. So each time you earn more, yes it’s taking more but it’s not going to leave you short ?? It’s also something that is written off after 30 years so you’ll never pay it off anyway and won’t have to pay it if you lose your job , payment will reduce if you take a lower paid job etc .

Yes I’m sure it’s annoying to see that balance not really going down but it’s not something that affects your credit score . Am I being naive here ? Surely it’s not a reason to deter your children from going to uni ? It’s like saying don’t earn more because you’ll pay more tax ?

Genuinely don’t get it , please feel free to educate me if this is a really naive view !

OP posts:
WinterOlympics · 16/03/2026 19:34

The latest plans are very different, with longer payment terms and higher interest rates. I, like you, pay a few quid here and there, but my children will be liable for hundreds at a similar paygrade. So yes, it's just money coming out of their pay cheque like tax, but in practice it means a) much less usable income each month, so they can afford less and save less, and b) they won't be able to access mortgages because their disposable income is so much lower due to the more expensive student loans.

As many people have pointed out, it will increase the divide between students whose parents could pay off the loans/give them the money so they never needed them - they will immediately have hundreds more per month to enjoy their lives, plus will be able to afford better homes, and much sooner - and those who come from less wealthy backgrounds. Plus people like teachers will be hit the hardest - earning decent wages so they're paying loans back, but not so much that they won't be losing loads and thus take a huge hit on their QoL.

I don't think anyone believes the country can give free money away in the quantities of students we now have, but this current system is really punishingly shit for anyone who doesn't have very comfortable parents.

MrsWhites · 16/03/2026 19:33

I agree with you, I have actually gone back to university in my 40’s so I’m racking up a student loan as we speak.

I will be treating it as a tax rather than a debt, I’ll likely never pay it off so there is just no point in me worrying about it whilst it grows in the background.

Original poster
Mamamamamm · 16/03/2026 19:31

Catza · 16/03/2026 19:28

I have the same view. Haven't really checked my balance since 2021, no idea how much interest I am being charged and what my total amount owed is. What I do know, however, is that I doubled my pre-degree salary in the first 9 months after graduation.

Exactly this! I checked mine a while back and it was a crazy figure , I’m sure something like £50,000 but I could be wrong … I don’t think of myself as being in £50,000 worth of debt. I would never , ever pay off more just to bring that balance down - they can take my payments for 30 years and then that’s that!

OP posts:
Ninerainbows · 16/03/2026 19:31

I agree with you. But I am on plan 1 and it doesn't stop me being peed off that mat leave and part time work has wiped out anything I have paid off so I owe more than I borrowed, 19 years after I graduated. It feels like a bit will come off my pay until I retire.

You're right in that it doesn't affect your credit score but you do have to put the monthly payments down on mortgage applications as expenditure.

Crushed23 · 16/03/2026 19:30

I very much treated it as debt and cleared it early. But not before I’d got on the property ladder and achieved a couple of other financial goals.

Catza · 16/03/2026 19:28

I have the same view. Haven't really checked my balance since 2021, no idea how much interest I am being charged and what my total amount owed is. What I do know, however, is that I doubled my pre-degree salary in the first 9 months after graduation.