student finance 2014

[chocolate]

Hi all

Anyone tried this repayment calculator!!!!! It's not for the faint hearted!!!!!

[chocolate]

Oops sorry here's the link :

http://www.studentfinance.direct.gov.uk ... lator.html" onclick="window.open(this.href);return false;

[Marylou]

Yes, the "total amount repaid" is eyewatering!

[Kit]

.

[Snowdrops]

Does anyone know if these student loans play a large part in mortgage applications further down the line (I'm thinking if they're low repayments would they be discarded/special allowances made, because surely the Government can't add insult to injury by not allowing these poor kids mortgages now they make them pay their own fees) ?

[Tinkers]

I think it is going depend on individual circumstances, but having had a quick play with this, (assuming the system stays as is, my DD is only in year 7), for us we have decided it is probably better to get her to take out the loans in full (as you say, it doesn't make much difference to the amount they have to pay back as it's a percentage of their salary over the threshold, not the amount borrowed).
We will continue to save towards costs, but may actually use that to help with deposit towards first house rather than pay fees upfront to avoid loans.

The other thing about loans is that is it themselves and not their parents responsible. For some that maybe the difference between them focusing on getting a good degree and dossing around for 3 or 4 years.

Of course everything may change for us as we have several years to go before then, and we have already told her that if she has a different plan rather than uni, then that's fine, (as long as it doesn't involve doing nothing).

Similar mortgage calculators are also depressing, but we have all grown up with the idea of having mortgages. Also we end up with a house at the end of it. I remember when I bought my first house, realising that I would actually end up paying more than double the amount borrowed over the mortgage term.

[aliportico]

No, I don't think there's any point paying upfront.

Eldest dd is in year 12. They get lots of talks about university. Yesterday she came home and said they'd all been told to have a proper discussion about money with their parents! DH and I have talked about it a lot, but yes, time to sit down and go through it with her now.

[hermanmunster]

Don't think paying upfront is worth it.. apart from the fact that no one will ever actually earn enough to pay it back 9at least in this household) , there is a possibility that future governments may get rid of loans and charge graduate tax, which you would still have to pay if the loan had been paid back.

[chocolate]

Yes what you pay back, absolutely doesn't bare any relation to how much you borrow other than the interest which is added. But it says the interest is 3% plus inflation but it also varies on your earnings, it doesn't show you how they calculate this, or am I missing something? Also, it doesn't show you what amount they are assuming you earn to what they are showing you pay back, when I get time I'm going to work it out. Guest55, I'm sure you can do that much quicker than I can!! I'm surprised direct gov have this on their website, as they usually seem to be trying to encourage students to take this finance, and this is enough to put anyone right off. Basically if a graduate earns over 21000 and works for 30 years, they will be paying for 30 years.

[chad]

We went through this last year - Ds is a fresher. The advice he received was to take the full loan (fees and maint) as repayments would not be any different. It would be better for parents to invest any money they might have used for the future.