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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

student loan repayments

14 replies

wheresmymillionaire · 28/05/2024 23:08

Please can I ask how much you pay each month out of your pay packet towards your student load repayments?
Thank you.

OP posts:
MiniEggsAndTulips · 29/05/2024 07:58

£300

Southener · 29/05/2024 08:04

Your repayments are based on how much you earn and what student loan 'plan' you're on, so won't necessarily match others.
Are you worried that you're paying too much or too little?

wheresmymillionaire · 29/05/2024 11:15

no, i'm just interested to see what the average seems to be for when my kids have to start paying theirs back.
£300 is a lot more than I expected.

OP posts:
User1979289 · 29/05/2024 11:25

Students taking loans now are in a very different position to previous - the interest is horrendous and starts on day 1

wheresmymillionaire · 29/05/2024 13:28

it is a worry.
DC1 is on a 4 yr course and DC2 is a 3yr course.
im just interested to see how much people pay per month.

OP posts:
Xenia · 29/05/2024 13:29

A lawyer in London on £120k e.g. would pay about £720 a month. (I don't have a loan)

Oldermum84 · 29/05/2024 13:36

£0.

Uncooperativefingers · 29/05/2024 13:41

User1979289 · 29/05/2024 11:25

Students taking loans now are in a very different position to previous - the interest is horrendous and starts on day 1

I'm on plan 1 and my interest started at day 1 too. I don't think that's new. I definitely remember interest rates being around 5/6% when I was at uni too, so the interest rate was comparable to today's standards

The interest rate changes though throughout the plan lifetime, it's not fixed at the time it was taken out. So if interest rates fall in say 5 years, the loanees benefit from that decrease

Sunshinedaytoday · 29/05/2024 13:46

I pay £300 but I have 3 loans.
I earn about 46k.

I owe more on my plan 1 than when I took it out.

Southener · 29/05/2024 14:19

If you're thinking about what your kids will pay in future, at the moment on the latest 'plan 5' student loan (assuming in England, it's different in other countries), they'll pay 9% on earnings above 25k.
Earn that or less, they'll pay nothing.
Earn 35k, they'll pay £900 a year (9% of 10k).
Earn 100k, they'll pay 6.75k a year (9% of 75k).
So it works more like a tax from that perspective.
They'll pay until it's repaid in full or until it's wiped in 40 years.
Obviously the current system could change again though.

Southener · 29/05/2024 14:22

For the newest plan 5 loans interest is also now set to the RPI rate of inflation (so that's a bit more positive than previous plans) but interest does start from day one

Spirallingdownwards · 29/05/2024 14:25

DS aged 30 (uni from 2012-2015) pays £660 per month

LondonTraveller · 29/05/2024 14:27

It won't be much use asking on here as the majority will be on a different system (plan) to your children. The plan for England changed in 2012 so everyone who went to uni beforehand will pay a different percentage of their salary and be tied to a different income threshold to your children.

www.thesalarycalculator.co.uk/salary.php. This is a helpful website to work out how much they'll pay each month.

loves2plan · 29/05/2024 14:34

I pay about £305/month but I have plan 2 including maintenance plus post grad. Earn c. £50k

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