Great podcast about student loans.

[NigellaWannabe1]

https://podcasts.apple.com/gb/podcast/the-news-agents/id1640878689?i=1000748553491.

Hopefully you can click on it if you’re interested. It’s really made me angry about student loans.

one thing I don’t understand is, why does Martin Lewis keep saying that even if you can afford to pay your child’s student loans, you shouldn’t? That it’s better so save the money towards a house deposit… but how can that be true if you’re likely to pay for your loans for the duration of your working life?

Of course, you can never know if your child is going to be a high earner but according to this podcast, the lower earners will pay the most over the duration of their loan’s term. Now you only have to earn a little above minimum wage to have to start repaying.

Thanks!

Plan 2 is written off 10 years earlier than Plan 5 though, so I can’t see any plan 2 recipients being prepared to pay an extra 10 years in return for the interest rate being capped.

Don't forget the amount that comes out each month is exactly the same whether Plan 2 or Plan 5.