“Paying off” my student loan

16 03 2010

I knew that next month I start the long process of paying off my student loan.
I went on the student loans website, and used their calculator to work out what I will be paying back each month.
I put in my current debt of about £21,000 (for those of you who gasped, this is pretty standard for 3 years with the newish tuition fees) and my salary, and it came out with £57 a month for the next 300 months (25 years). This sounded pretty good until I read on…
After 25 years, the remaining balance of about £45,000 will be wiped. £45,000?! That’s double what I owe at the moment, even with paying £17,000 over those years. That’s a total debt of over TREBLE my initial borrowings…
There’s an option to voluntarily pay more back, but really, what is the point?!
Amusingly, what I borrowed to start with was about £19,000, which is closeish to what I’ll be paying back!

What a system ey?

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One response

17 03 2010
thra Steve

haha!

the other option would be to become a missionary in a far off country like Thailand and then pay back £0 😀

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