16% Student Loan Interest?

[kegofcoffee]

Student loans have interest applied at RPI + (up to) 3%

Interest is frozen at 6.5% until the end of this month. But with RPI currently at around 13%, it's looking like interest will rise to 16% or maybe even more.

I'm pretty sure for me that'd work out at £10,000+ in interest being applied in a year.

Obviously doesn't impact the amount I pay a month. But will impact my ability to pay it off before the 30years, hence meaning in the long run I'll pay more.

Has anyone read anything about them freezing rates? I've googled but had no luck.

You know I hadn't even thought about that. But then I already calculated that it would take over 1000 years to pay mine off so probably doesn't make that much difference!

@OakleyStreetisnotinChelsea

I think you're right actually. I was probably being over optimistic that I'd ever pay it off.

I pretty sure my debt is currently a lot higher than what I borrowed. And that's after around 5 years of paying it off.

Are graduate jobs becoming 16% better paid? No.

It does look like only people with well-off, saving parents should go.

If you don't pay it off within the 30 years it is written off, so I don't see why not getting it paid off matters. Just think of it as a payment until you reach the 30 year point, then it stops.

They do now get written off after 30 years yes. But older plan 1 loans don't, they stop age 65 and I have 1 of those plus a plan 2 from retraining and a postgrad loan. Postgrad is 30 years and I sincerely hope I'll be retired by then.

So i will be paying loans off until I retire, there will never be a time that I am not making payments and yet I will still only make a teeny, tiny dent.

And yes it might be my fault for doing so much study but I like to think there is value in midwives with specialist interests.

Wow that is shocking!

I’ve always thought the loads were better thought of as a graduate tax and not worried about it too much. But this isn’t actually ending up with those getting the most benefit paying the most. Ok they do get written off but still.

I currently have just under 5000 left
on mine and was thinking it would be paid off in just over a year and actually the money that will free up is not insignificant. I think I’m relatively unusual in my group of friends in being close to thinking about this other than those who had the pre 2007 fees or followed the same career as me. Most people won’t pay it back.

I’d be surprised if Martin Lewis wasn’t already on the case.

The cost burden heaped onto students is really unreasonable, we do actually need well-qualified people, especially in e.g. medical careers and making it so expensive is really damaging the nation.