We heard no other question as often as this one. At least not in 2021. It seems that “How much student loan will I pay?” is the number one question on everybody’s mind right now. And with everything going on in the world, we definitely understand why. People are once more having financial concerns and, of course, they want to make sure that they are safe. That’s why we want to let them know that, if the student loan is their only problem, they have nothing to worry about.
Of course, student loans are just like any other loans and should be taken seriously. But you should never be afraid to take out a student loan, not if it can help you better yourself. This is what we tell all our clients. Student loans should not be seen as regular loans. Rather, you should view them as an investment in yourself.
If you are able to go to a good college, if you are able to study the courses you had your eye on and if you get your diploma, your chances of success in life increase by a lot. In fact, getting a diploma from one of the colleges or universities in the UK will provide a huge boost to your career. And this goes both for native-born students, european students and international students. A diploma from one of the colleges or universities in the UK is a guarantee. It tells your future employer that you received education of the highest class and that you can become a top employee.
Once you get the job, those concerns about your student loan should not bother you anymore. But there’s more.
How much student loan will I pay? Maybe 0
When it comes to student loans, what scares most people away is the price tag. People see that number and it intimidates them. But what is that number? Well, it is a bit trickier.
That’s because it is not a fixed number. Once you leave university, you only have to repay your loan if you’re earning above £2,274 a month. This is about £27,228 per year. And event at that point you only pay back 9% of everything you earn above £27,228 per year.
If this answer surprised you, don’t worry! It should. It’s that big “if” over there that probably has you confused. But there is no confusion here. In Great Britain, you only pay your student loan back if, after you finished college, you earn more than£2,274 a month.
This is the rule here. Well, it’s the law actually. The British government is not afraid to invest in its students. It really wants to help young people out, to secure better jobs and better futures. When you look at it like this, that loan is not as scary anymore, is it?! Of course it is not. But there is more. If, after you start repaying the loan, you lose your job or your earnings fall below the threshold, your repayments drop accordingly.
So what was the question again? How much student loan will I pay?
There’s a chance that you won’t have to pay anything. If you have a job that pays a low wage, you will pay back very little or even nothing at all. This is how the system is set up in Great Britain. It is created in such a way thatthose who gain the most out of university contribute the most. This way, everybody wins.
Your student loan will be cleared after 30 years
There’s one more thing you should probably know. Student loan repayment is scheduled to start for everybody from the first April after graduation. 30 years after that point, the entire debt is wiped. It doesn’t matter if it was partly paid or not paid at all. After 30 years, there is no loan anymore for you to pay. It just goes away.
So the conclusion is pretty simple. You do not have to fear your student loan and you definitely should not be afraid to invest in yourself. But if you’re not convinced, if you still want to know how much you have to pay in order to go to university, come and talk to us. All you need to do is to press the button below and fill out our form.