Why worry about your kids student debt?

[saladcruncher]

I finished uni in 2010, and became eligible to start my repayments from April 2011.

This was under plan 1 - the 'pay via tax method'

Plan 1 has a 25 year write off, so any remaining debt will be forgiven at the start of April 2037.

I'm already 13 years through this and in those 13 years, I've paid off I think up to 90 pounds. And I'm not going to be paying anymore anytime soon.

Basically it looks like I'll reach the write off period and have paid off 0% of my student debt - a free degree in effect.

I took out the full maintenance and tuition fee loans.

My question is, why are some parents trying to pay huge chunks of their childrens tuition fees or living costs in this situation, when the money could be put into a savings account for a house deposit etc in a few years time?

Granted a lot of people won't be earning under the threshold like I unfortunately have been and the write off is later but the principal is the same.

@Newgirls 😂you're funny. Not sure if you've noticed the doctors strikes. High earners no more. Might be on £60,000 after 8-10 years from qualifying (nice, but not going to pay off the loan on that).

That's if they're lucky enough to get a training contract and not get stuck at F2 level for years (£35,000). Gone are the days of doctors getting rich. Many will never make consultants as not enough jobs (why, because the government won't fund them).

The loan gets bigger each year as interest is more than repayment on £80,000+. Most doctors will repay over £250,000 before the rest of the debt is wiped off. If they leave the country.

Can't do anything about it as no other way to become a doctor but it's galling when the rich kids have no debt.

I think 60k is high earner! It’s also the loan sweet spot where the kid will earn more than threshold and will also accumulate a lot of interest.

no wonder some medics do private days and work abroad

@Newgirls I think £60,000 is a high earner too (being a teacher it's something I'll never see). But it's not rich enough to repay the loan.

There is a fantastic graphic somewhere that shows how much the loan increases every year, so much so that it only starts to come down once doctors are consultants (10-15 years after graduation). And then very slowly.

Lawyers and bankers are rich. Doctors less so. Only consultants can do private work. And many doctors are potentially going to be unemployed this August. Because of lack of funding and being replaced by PAs with 2 years training. This government hates doctors.

I'll never fully repay my plan 2 loan (post 2012, 30 year write off) but I earn well now and chunks of my take home go towards it every month. Not even enough to cover the interest it is accumulating in that time. It's infuriating knowing I'll never pay if off and for the next 20 years chunks of the money I earn will go towards paying it.

I would definitely pay some of my daughter's tuition fees off when the time comes so she doesn't have it hanging over her head for almost her entire working life.

@3under wish I could too. One day I'll win the lottery

I mean in an ideal world of course, in reality I would like the win the lottery too and pay them both off 😂

Agree. This is what this thread is about. The loan interest is now so high people will pay back double/triple the loan. Let’s hope a new government will improve matters but I imagine the loan company has a water tight contract