Martin Lewis: Student Loans Decoded

Martin Lewis: Student Loans Decoded is a groundbreaking, no-nonsense, authoritative guide to student finance and the real impact of higher education on both students’ and parents’ pockets.
To find out more: mse.me/3wEjqOQ
Watch it in full or jump to one of the chapters below:
How much does it cost to go to university? 1:02
How much are parents expected to contribute? 8:32
How are student loans paid back? 19:38
How does the interest on student loans work? 29:39
Q&A with Martin Lewis - 44:22
Speaking to a lively group of 100 pupils at Queens Park Community School, Martin shatters popular myths and challenges the widespread misinformation that risks many young people not understanding - in practical terms - whether they can actually afford to go to university.
This easy-to-follow programme focuses on the current English system (introduced in 2012) and is intended for prospective university students in years 11 - 13 and their parents. Designed to be watched at home or in the classroom, it is a valuable resource for teachers and students.

[@deebee3424]

He was spot on in many ways. One thing that was miles off though was the idea that wages go up nicely with inflation.

[@sofiadf4688]

The reason noone can afford housing is because house prices have gone up by 5 times and wages by about 0.75?am. My parents wage is perhaps 50 percent higher what it was 20 years ago but their house is now 500 percent more expensive. So somebody earning 20k a year in 2000 but a house costing 50k was much better off than someone now earning 30k looking at a house costing 250k

[@martynsmith8120]

@@sofiadf4688 Baby boom generation are minted because of this.

[@jsmithmultimediatech]

@@sofiadf4688 A large reason for it was due to Thatcher and deregulation, before her banks or lenders for mortgages could only get their funds from a very limited number of sources, she and Raegan got rid of that allowing the lenders to be able to offer higher value loans and thus increasing demand. Resulted in house prices increasing ever since practically.

[@rachelandy2207]

What an education. As a parent this lecture is so informative. This should be shown in all secondary schools. Thanks Martin x

[@geo_neo9]

Incorrect cause he isn't telling you the whole picture just the picture which only serves those at the top, never us. He isn't really telling us the whole truth which is we are all free range slaves.

[@aafhans8326]

@@geo_neo9 i am late but can you explain it please

[@geo_neo9]

@@aafhans8326 in uk our curriculum is created by rockefella foundation from USA. Its created to make people be of ignorance and they control most of the worlds education inc college and universities.

[@geo_neo9]

@@aafhans8326 our natural creativity is pushed away stuck 8 hours behind a desk when we are as children are meant to go on adventures. They teach us nothing but lies and to be of obedience. Its not true education such as self love, emotional intelligence, spiritual intelligence not connected with religions but spirituality which is about self growth, healing and becoming our best self.

[@geo_neo9]

@@aafhans8326 schools are no different to jails. Ya gotta ask permission to go toilet, bell rings for next lesson and they do ñot teach life skills etc. Everything I was taught in school except English n maths I have never needed in my life. As humans we are very powerful but we are taught what to think not how to think.

[@elipong88]

Martin you are a flipping genius this is soooo insightful!!

[@paulambrose3003]

She Said That's what If uni's are "free" who paying for the university...... The tax payers?

[@johnidchannel6877]

Martin Lewis is great

[@somedude4938]

This is such a fantastic talk - demystifying and debunking so many myths

[@angiejones9387]

Martin, thank you, this is an excellent guide. I have two sons, one is a graduate and my younger son recently started at uni, and I found your explanation incredibly useful. I'm sure that other parents will benefit hugely from viewing it and I encourage all schools to add this video to their year 12 curriculum.

[@MeMyselfandMyPie89]

Even as a graduate, this has been very informative. Shame it's taken me watching this in 2019 after graduating in 2015 to realise this fml. Wish its all wiped off!

[@jeremyr8793]

Its annoying when your earning over £40k after dropping out after 2 years. Turning a £19k debt into £24k once leaving, which will clear after 16 years costing £32k for something you never used is quite shit! Wish it would just be wiped. I wouldnt mind if i used my education to get the job im in now but its got nothing to do with uni education :( seeing £200+ leave your pay each month is ANNOYING!!!!

[@imaginx806]

@@jeremyr8793 How did you earn over £40k without a degree?

[@jeremyr8793]

@@imaginx806 my basic is £40k with overtime pass £50k. I got myself a HGV license and became a Aircraft Refueller. I WISH i knew this before going to STUPID waste of time university.

[@edwardbyard6540]

@@jeremyr8793 Annoying but that's how it is - it was your decision to go, and your decision to drop out. If I buy a car and decide I don't want it, and I sell it, and there's an outstanding balance on the finance, I have to pay that. That's just how it goes.

[@kevinwalters5160]

@@edwardbyard6540 The two scenarios are not entirely equivalent. The current, intricate "student loan" (Mr Lewis terms it a "graduate contribution scheme") system was intentionally structured to not allow early repayment. It's also a decision with multi-year consequences that's made at the age of seventeen, perhaps with limited educational and careers advice from parents (at 5:00 he cites an example of common poor advice perhaps influenced by tabloid newspaper headlines), friends and school. That's all set in the context of a Government which encourages a large percentage of the population to attend university and employers which have got used to a high percentage of employees having degrees.

[@artwithtricia]

Fantastic, I felt I know about students loan, being a keen MoneySaving follower. But as a parent of a year 11 student this has really got me thinking and planning! Thanks

[@kuldeepkuner5705]

been following this guy for 20 odd years, like always he is fantastic :)

[@raymondnes]

Superb video and very nicely explained. Thank you Martin!

[@gav4090]

Excellent Video. Thank you very much Martin! You are a great speaker

[@dwyt]

Thank you so much for this! this is great.

[@kirandobson2151]

Brilliant video, super helpful thanks. To make it even better you could add the graphs you talked about on a screen behind

[@cynthiapinto198]

Thank you Martin, God bless you.

[@iguiste23]

You're spot on. I was in care my entire life until 21 so they coveted mostly everything. I went to Cambridge college at 18 after practically walking my GCSEs. I between then and now at nearly 34 years old have studied Astronomy, Genetic Biology, Geography and nearly perfected Ecology. I am currently about to apply to go back to college yes at 34 years old to Study Astrophysics and Rocket science as I want to pass to be able to apply for NASA one day in the future. Great presentation and very accurate. Though it was much different when I was younger before 2012.

[@Brickinasock]

Please tell Martin that I shared it on Facebook and already I have had one person thank me because they planned to pay their debt off directly. Thank you. I hope there will be many more.

[@seba.753]

Quite simply superb.

[@ll-Nebula-ll]

If we don’t see this man in the next 5 years we will know why 👀

[@anomx1116]

... because Zoe kidnapped him.

[@mynameisseb9613]

@@anomx1116 nah, it'll be Joe

[@madiha6282]

OMG he is so GOOOOOOOD!!!! i love this man. i was so worried that i was going to be on so much debt on my plan of 7 years of uni, now i know a lot i. thank you so much mr martin lewis

[@beltingtokra]

"The government is omnicompetent" Not sure about that... Seriously, such a useful talk. As someone who went to Uni in 2011, I never understand why some parents paid their child's fees up front, makes zero sense. I started working full time a few years after graduation and only then did i start to pay off my loan, but you barely notice it. Feels good to be paying it though, although it will never be paid off 😅 I also wish the plan 2 system had been explained like this when it was being brought in. Ultimately, the amount you owe doesn't matter, unless you are someone who earns enough to pay it all off. The fear surrounding the fees trebling whilst totally understandable, made application in my year much more stressful. But Politics 🤦 Good luck to everyone applying to university and those studying and also going into the world of work right now 😊

[@rikhil_8818]

I’m studying medicine so more than likey I will be a doctor. Will it be worth me a) taking out a larger maintenance loan as Martin says it won’t make a difference b) pay down extra towards the student loan when older?

[@melc900]

@@rikhil_8818 If you are likely to pay off your loan in full within the 30 years, and your rate of interest on it (which is dependent on your income) is higher than something else like savings accounts or investments, then you are better off overpaying on your loan to reduce the total from interest on it.

[@nimiarose8775]

hi after my course, if I get an offer to a country out of UK for a job opportunity will I be able to go there with the loan standing and if so how will I pay the loan back. thank you

[@lornalancaster8123]

Brilliant, Martin. What a pity so many people responding to misleading articles about the 12% clearly have not watched this video and are unaware of the true facts. The only question that remains for me is whether one should apply for any loan if one has a well paid placement for the 3rd year close enough to enable one to live at home but still has to pay something to the university (God knows why). My instinct is not to, assuming one can still get the loan for the final year

[@kristaylor7119]

With me living in Canada, I currently have issues with not being able to afford my arrears payments, I agreed to a lower payment with the SLC and am being punished by the SLC for having this agreement by them adding the difference every month. I have been told unless I can afford to pay it, I will Indefinitely owe them, past the 25/30 year until it is paid off. In essence I could be paying them forever. I wish I could have a conversation with Martin in this.

[@flourisho1934]

Hello Kris Taylor, email Gina on gina@creditmasterfix,com she would help you with your arrears payment ... you can just look them on their website on CREDITASTERFIX,COM and see things for yourself

[@sofiadf4688]

Even before the loan itself was means tested same thing was happening. The maintenance loan in 2009 was not enough to cover rent. If your parents were poor you got a grant in addition and often times people with the ‘poorest’ parents were actually getting regular pocket money or thousands of pounds from their parents a year. My parents werent divorced and earning over the threshold so i had to pay for my difference in rent and food etc myself with 2 years of savings from working for 2 years before starting uni. My second year was abroad and i couldnt afford to pay double rent. I was excluded from uni emergency grants as they were based on parents earnings. The only students able to actually do a masters on one of my courses were actually means tested and got all the grants whilst i had to drop out due to not having enough funds and couldnt work as my course was full time lessons and homework was over 12 hours a weekend and has to be submitted on the online portal by 6pm on sunday. If you are doing a science based degree the homework is non existent and you have plenty of free time to socialise and get a part time job. If humanities and joint honours you will struggle. I dropped out and make a much higher wage now than what i couldve made had i got the ba, masters and gone into the career i wanted which is now really hard to get into due to lack of jobs due to policy changes to the curriculum and the fact that teaching is low paid and often unfit teachers are hired over those with the right skills. Uni is not worth it unless you are going into engineering, science or health professional roles or unless you want to just party then work in a shop job forever.

[@eliakimjosephsophia4542]

Excellent explanation.

[@maxwellmc9734]

Brilliant information 👍

[@ayak6317]

Great speaker

[@OllyNewport]

I dropped out of university and have a £17,500 student loan that's earning the SLC a hefty 6.3% interest (£100 interest added per month). I earn about £50k a year before tax as a freelancer, meaning I pay £2,200 towards the loan each year in my self-assessment tax payment. The size of the loan increases by £1200-1300 each year. Should I repay the loan early? If I leave it alone, it'll continue to earn a massive chunk of compounding interest into the future, where it'll eventually be paid off before it gets written off, but having cost far more than if I got it out the way now.

[@RadiographyST]

Yes.

[@yes_man_lol]

Please avoid partying, spend on the latest iPhone and clothing and pay off your debt. It will come and haunt you, your future spouse and your future children.

[@lunaangeleclipse9745]

@@yes_man_lol what do you mean??? the debt wipes after 30 years why would it haunt their children???

[@melnegus4262]

The topping up by parents to meet maximum maintenance loan doesn't really make sense as the price of accommodation varies greatly across the country. So if my accommodation cost 8000 per year and I was lucky enough to qualify for an £8k loan then my parents would be looking to top that up by £944 or just under £25 a week for a 38 week contract or just under £19 a week for a 50 week contract. That's a bit tight on anyone's budget to cover food, drink, washing etc. If my accommodation costs were less then yes I'm potentially quids in but unless accommodation fees are capped on a similar level across the country (outside London) then it's pretty hard to use that formula as a blanket proposal which maybe should have been made clear. I love the logic and everything else it's been useful but the parent top up should possibly be explained in a bit more detail.

[@doghat1619]

Yeah it's a bit weird, I'm lucky to live in a quite small city and my living costs are very low. If I lived where I came from back home, or in a larger city I'd be looking at spending a few thousand more per year.

[@ChildOfAnAndroid]

Should try living on a minimum wage job! Believe me it's just as bad, usually worse!

[@TapiwaLexis]

Can you still get a mortgage with a big student loan debt of (5 years). Or is it harder to be accepted ?

[@saasda6255]

Doesn’t show up on credit file so you can

[@tc9634]

It's not a debt, doesn't show up on your credit report it just means your tax rate is higher.

[@lunaangeleclipse9745]

I imagine you can, considering many people die having not ever paid off their student loan

[@princesskaitlinhazelwood4703]

I am from the US and I found your system is really different. I get the irrelevant amount example but wow for 30 years. That is a long time to pay.

[@dawnmills5567]

I am currently in university I can't work and my maintenance loan is not enough, I'm a mature student so I have no parents to help, I get my loan 4 months apart, I can't work and can't get uniseral credit so I'm struggling, I only have three months to go and feel I might have to drop out because I'm struggling?

[@jeremyr8793]

Its annoying when your earning over £40k-£50k after dropping out after 2 years. Turning a £19k debt into £24k once leaving, which will clear after 16 years costing £32k for something you never used is quite shit! Wish it would just be wiped. I wouldnt mind if i used my education to get the job im in now but its got nothing to do with uni education :( seeing £200+ leave your pay each month is ANNOYING!!!! Especially at interest rate of 6.1%!!! When mortgages are 1.9%!!! The interest rate is a absolute joke. It should be interest free or max 1.5% like the pre 2012 lot! #Robbery!

[@lomar0058]

Biggest con I've ever heard of smh

[@jeremyr8793]

@@lomar0058 yep it grinds my gears every time i think about that silly mistake I made going to uni

[@datmotoguy7203]

What do you do for work ?

[@peaceformula5830]

@@jeremyr8793 Why don't you just take out a loan at a lesser rate. Pay the student loan then use the 200 a month to pay off the cheaper loan.

[@jeremyr8793]

@@peaceformula5830 because even though it os annoying, its a slow debt sprrad over a long time and doesnt effect credit score. They just got alot of us trapped.

[@georgeredden6196]

I just have a couple of questions if anyone can help me: if it doesn't matter how much you borrow because you will only pay a fixed amount based on your income for 30 years, then who picks up the tab for the write off of the amount that wasn't repaid? Surely, if the loan is for living expenses and the money is not repaid then there will be a loss of money somewhere. Moreover, if both students and universities are off the hook when it comes to balancing the cost of education, what prevents schools from jacking up the prices since they know there won't be any accountability? wouldn't this create a risk for universities and companies that provide services to abuse this system?

[@martinlewis1290]

Pleas see the blog on my site where I answer this in detail

[@ccderby]

Its an interesting question on how SLC are funded, esp as "non-profit making" in terms of the high amount of written off loans. In general, the answer is students pay for other students. Don't let the writing off suggest these are low cost for all, most (mid to high paid) students will pay very highly for their education, much more than they take out the loan for

[@sofiadf4688]

The universities already put the price up. It really costs the unis nothing. All university courses were free before 1990s and not only were they free but students got grants to live. Think of the loan fee like the plastic bag fee. All plastic bags were free on the UK until the EU forced an eco 5p charge bringing in the shops millions of pounds a year for nothing. Now you will notice most shops are charging 20-30p for the bags and £1-2 for the bags for life. Thats from £0-£2 . A 200 percent profit in 10 years

[@topnotchadvice3375]

I’m confused so my loan is 9250 a year if I take maintenance loan which let’s say they give £3500. I still pay 9% altogether ?

[@topnotchadvice3375]

Daniel Clark Clark thank you

[@tc9634]

Yes. It's all added together and treated as the same "debt".

[@Stopthedeathcult]

Should be listened to

[@titithetoad]

Does anyone know how this affects your ability to get a mortgage? For example, my friends daughter got a good job teaching in a private school, so she is paying over £200 a month on student repsyments, but she would not also be able to afford a mortgage on top of that, forcing her to live at home. Is there a way round it or are you stuck with this situation until its paid off? Thank you

[@Breadstar90]

This isn’t the time to get a mortgage

[@LFLvideos]

I appreciate Martin Lewis and what he does for the country to provide financial literacy, HOWEVER; if you think you'll never pay the debt off because you won't earn enough then don't go to University. To keep up with the rising cost of living and if you potentially want a mortgage one day, you will earn over the threshold and you will be using your 'education' as a return on investment in hoping that the financial cost is worth a higher salary in the long run. Unless specialising in hoping to aim for a career which is absolutely vital to have a degree e.g. health care to become a health care professional, engineering degree... you are simply funding the business of education. When you join the real world you will realise people will pay you for your competency, who you know and work experience so far. Many many people with degrees devalue the degree, despite the huge debt. Consider apprenticeships or work directly. Otherwise, want to learn deeply a subject? Try an online course that costs a few £100 rather than 10s of thousands. Your welcome

[@seanmiller9567]

Wish I had this advice before my first degree. Currently in sales now to earn a good salary and save but I want to train as an Osteopath and go into health care. With the calculations, two degrees mean no difference in my paying back than one. However if I didn't originally go to university in the first place, I would avoid the loan altogether, at this stage I want to transition to a more meaningful career.

[@ModerateObserver]

Exactly. The thought ‘you’ll pay nothing if you don’t earn over the threshold’ seems very defeatist. The best strategy, surely, is to maximise your salary. It will mean you’ll pay more for your students loan overall, but your standard of living and financial security will be much better.

[@sofiadf4688]

The problem is that the people who are misguided into thinking uni guarantees them a good wage assume they will get a good wage whereas in reality they often end up in shop jobs. I found plenty of people at my uni who’d never worked before and had unrealistic career aspirations. I mean impossible aspirations that were guaranteed never to happen!!

[@sofiadf4688]

@@seanmiller9567 and i think you might no longer be eligible for loans to do a second degree. Somebody i know doing podiatry as a second degree was told they would not be eligible for a loan

[@world65pk]

Does the Student Loan Co, give the loan to Ph.D students or it is just for undergraduates students?

[@joyjohnson8501]

Undergraduates I believe

[@evn2990]

1 year late on the reply but the answer is yes! Student Finance England (the Loan Co.) will grant a loan for your first Undergraduate, first Masters and first Doctoral.

[@BLOCKsignallingUK]

Good but missed the opportunity cost of lost employment during the years at university (could be 60k or more).

[@hongstewart9095]

As he said, it's not all about money matter. Student life enriches ones life and the experience can't put a price tag on it.

[@generalk9947]

he mentioned that if you go to uni and decided that maybe it wasn't for you and leave you will still have to pay which is correct. However, what about how you pay back the loans even if you don't graduate does the repayment system still apply to those who didn't graduate and you still only pay 9% once you earn over a certain amount?

[@junaidhussain7339]

Yep, so if you go to Uni for 1 term even, you're going to still have to pay for that term

[@RadiographyST]

Include National insurance. 😥

[@philstephenson5060]

At 7:04 Martin says "extremely high earners pay less" is this because they pay off the loan before much interest has been accrued?

[@broForseNetwork]

yes which is why if you earn above a specific ammount it is actualy worth paying off your studnet loan faster than the 9% you have to pay

[@MrKraySwag]

@@broForseNetwork What is the specific amount/salary where it makes sense to pay it off?

[@doghat1619]

@@MrKraySwag It's really hard to know, it all depends on your borrowed amount, and the amount you earn. I'd say if you can save and knock a good 5, maybe even 10 years off repaying your loan by paying it off early, it'd be good.

[@JivanPal]

@@MrKraySwag, Assuming a 3-year course with a £9,000/yr tuition fee and having received a £4,000/yr maintenance loan, then roughly speaking: your average salary during the 30 years after graduation should exceed £63,000/year before interest and taxes. There are calculators out there designed to take into account things like predicted salary growth and give a more informed ballpark figure, such as MSE's own one: www.moneysavingexpert.com/students/student-finance-calculator If you are anywhere near the ballpark range, you can afford proper financial advice tailored to your situation; in that case, I would recommend you seek it 🙂

[@Ronakvevo]

This is why I live with my parents and make it a mission to pay off my student loan while I'm doing my job before thinking of moving out.

[@malgorzatamiturska6461]

Was hoping to hear how, having a student loan, effects their financial borrowing life, in the future? e.g. mortgages. Still, as always excellent from ML 😊

[@fireballoontv9932]

if i have the option to stay at home and go to liverpool uni or move out to a different uni, what would be better?

[@tc9634]

No simple answer.

[@heebites]

Please don't let the finances dictate your decision! Do what ever would make you happy! But if you're not eligible for the full maintenance loan due to household (i.e. parents) income, just remember to have that conversation with them regarding supporting living costs.

[@PandaPandakun]

Its highly likely that you'll end up living in the City that you go to uni in beyond your years of study. So choose somewhere you genuinely wouldn't mind living in for the long run. Choose somewhere where your likelihood of getting a job after uni is higher. Choose somewhere where the degree course is genuinely worth the money. P.s. not living with your parents is FUN.

[@leestalker8256]

Will they chase any assets I have in the 8 years before it is written off?

[@arjunbhaduri7525]

The problem is the student loans system is so complicated because they keep making changes to it and try and make it fair. Since tuition fees are £9250 per year, I think it is only advisable to go to university if you are genuinely academically talented.

[@fatimaali3651]

It’s gone up to £27,000 a year threshold

[@user-wx4sr2nm8c]

I'm surprised this hasn't got more views

[@adamibrahimdemirci2588]

In the digital era one cannot challenge as one is electronically isolated following a challenge, (bypassing the WWW) completely to 2nd, 3rd, 4th generation 'internet landscapes' which simulate the WWW - these are databases, controlled spaces or 'holding pens' where the computer operator is encouraged, provoked, prodded, processed then assessed before being re-attached to the WWW - is this a world wide phenomenon or is there a different strategy privately operated by each platform - for presenters it's worse still - do they have a 'real audience'? Discuss...

[@oldschoolwaverider]

I would have asked Martin about all the people who had their loans sold by SLC or SFE to private companies who increased the rate of interest and added late fees. Apparently this was done legally.

[@StarRestless]

Maybe it's just me but doesn't the advice Martin give assumes that the threshold at which you pay back your loans will just keep increasing with any increase in wages? Or am I missing something?

[@sofiadf4688]

Not sure if it happened to all loans or only plan 2. My interest isnt too high on plan 1 but i reckon plan 2 will be bigger inntetest rate in the future

[@themxoliadventures6345]

Brilliant

[@junaidhussain7339]

Is this before or after tax?

[@junaidhussain7339]

@AS Sixth Form ty

[@martinburman9790]

Spot on video. I always think if you are wanting to go to university and you don’t understand how the loan system works then you really shouldn’t be going to uni anyhow

[@paulaabdul3698]

During covid their experience was nil & void the whole university experience didn't happen they paid for laptop learning which they could have easily done without paying £9,300 so it was a waste of time!!!

[@paulhill2366]

What about if the government retroactively changes the rules? :)

[@sofiadf4688]

I would NOT recommend studying part time. 2 people i know who did that ended up not passing and having to get multiple extensions because the universities did not offer lessons set to their timetable. So they missed lessons whilst at work, got behind with the courses and failed exams then had to redo the years and so it took them even longer than expected and cost more.

[@gosskamperis2016]

MAJOR OMISSION & THANK GOD I'M STUPID. (Unless I missed it) I don't believe you mentioned the opportunity cost of going to university. By inference, you suggest the majority of graduates will bump-around in mediocrity BUT will pay a higher marginal rate of tax by 9%. People talk about university life and networking but then, I networked in my late teens/early twenties and set myself for life. By my early twenties, I bought my first home and "the clever kids" moved into my spare rooms and started giving me money each month. THANK GOD I'M STUPID. (Oh !!!! And BTW I later studied and qualified as an accountant.)

[@Anooppawar1]

The government can change the repayment conditions at any time over the lifetime of the loan and the student.

[@slimracket101]

Why did I get set this for a maths lesson

[@ShammarPrincess]

First time maths is useful

[@rufuskinsey3305]

So am I right in thinking then that there is no point in going to university if you are doing a degree which will keep you only just above the £25,725 mark otherwise you are just paying an extra 9% tax on an income you could have had without a degree and the debt?

[@annarichardson7794]

No. In practically all cases you are going to be paying 9% extra income tax (15% if you later combine with a postgrad loan) for 30 years. Extremely few career paths will pay you enough to ever pay these loans off. Not even becoming a doctor or engineer will be enough.

[@craigmalcom6294]

@@annarichardson7794 that’s wrong. The original op is correct. If you would’ve earned the payment threshold (£25,725) without going to uni then you’re better off not going at all because then you would save money by not paying off a student loan. Unis only worth it, if you would’ve earned a decent amount above what you could’ve earned if u didn’t go to uni because, even despite paying that 9% every year, you would still have more money

[@micallef87]

Is it 9% of gross income or after tax/NIC?

[@tc9634]

Gross

[@SS-eg4fl]

after tax/NIC

[@Rokka340]

I will urge anybody who wants to go to the university to get a small job before attending because you will literally be on your own. Don't rush going; take your time, and that's exactly what I did.

[@CalebFaithfull05]

Zoe was in love hahaha

[@ModerateObserver]

The news today - in quite scare-mongering tones - is all about how student loan interest rates will rise to around 12% later this year. But will this change the advice Martin gives here? My understanding is that, for most people, it will not. Most people will still be paying the 9% ‘extra tax’ without ever paying off the entire loan. This change will only impact the reasonably highly earning people who, with this higher interest rate, might now not pay off the whole loan before 30 years has elapsed (and so might end up paying more to the student loans company overall).

[@widebleek8138]

Why do they have to pay this graduate contribution? My friend did a Mathematics degree in the 1980’s and did not pay a penny. In Scotland they don’t pay tuition fees. And in the EU some countries don’t pay a penny. The next generation should be more educated than the present. Shouldn’t that be so in England and Wales?

[@nquanstrom]

Educate people on 2 rate tariffs as many people do not know what tariff they are on. 2 rate tariffs were designed for storage heating. People now have gas boilers installed but have not changed there tariff. Changing to a single rate tariff could save hundreds

[@michaelpoole587]

Is it not over complicated ?

[@Ronakvevo]

If tuition fees did not triple in one night I would have paid it off within 9 months if I only spent my salary in commuting to work.

[@Ronakvevo]

@Speaking Truth I guess that will be a lifetime payment which makes me feel lucky but I wish it was 9k a whole course so I could pay off from doing part time work at uni

[@PinkLegue]

Just to be clear the parental contribution does not really apply if you live outside of England. The government of Wales and others will give you a grant (you don't have to pay back) to make up the rest of the loan up to the 9000 odd pounds.

[@AD-mw5mv]

..for those with household incomes below ca. £42K

[@ttrjw]

Discussion on income tax is nice, but ignores 12% National Insurance up to the higher rate threshold, and 2% beyond...So that's a graduate basic rate deduction of 20% income tax, 12% NI and 9% student loan... 41%.

[@timothyoluwaremi3607]

What if your a self employed director of a limited company currently only living on dividends from the company?

[@baqirhemraj7639]

Education is a right and should be free to all UK citizens like the NHS, full stop. The present system burdens the future younger population with permanent unbearable and avoidable debts.

[@baqirhemraj7639]

@Saint Ratus I agree with you and it seems that government wants to exploit us bearing in mind we are paying taxes and VAT to the government. We need to vote with our feet and replace the government.

[@sofiadf4688]

Nobody has the right to higher education, only up to age 18

[@baqirhemraj7639]

@@sofiadf4688 People have been brainwashed, the reality is that a student has to resort to student loans to get an education and there is no right or the prospect of getting a job,. On the other hand, the institutions have to recruit foreigners who have studied here or from abroad. The whole system is bizarre, to say the least.

[@baqirhemraj7639]

@Saint Ratus Well, everyone is entitled to their own opinion. good, bad, or ugly.

[@skillfuldabest]

You don't even know what you're saying, and it's very sad. When you tell people they have a "right" to a service, you are saying that those service providers can be coerced by the State. A right to education = teachers at gun point by the State. A right to free healthcare = doctors at gun point by the State.

[@SenzoTanaka]

"A new set of values, because YOURS are narrow!" Wow.

[@scottburns5106]

Would it be better if I lend my daughter the same amount of the maintenance loan so that she can avoid the interest loan. I haven't got a lot of money but I could do it for the first year

[@WolfCounty682]

13.5% this year on plan 2😢

[@SWUploads971]

This is common sense, I knew all this the first time I applied for student finance. As a result, I've never once worried about my loan total because I know it's meaningless.

[@oliverlester6395]

Why are you here then?

[@aysheafarag]

Same, thought I'd see if there's anything I missed but thankfully I haven't.

[@SWUploads971]

@@oliverlester6395 To see how dumb the masses are

[@Breadstar90]

@@oliverlester6395 to wake up the sheep, and blow the student loan on some Coke and hookers

[@gidzcreation770]

For srilankan students who is going to study in UK

[@miseno2531]

I am from central europe and I never thought these student loans have interest linked to inflation. That is super dangerous. If central bank sets interest rate low, inflation might sky rocket and you will be paying super high interest while everyone else will be borrowing super cheaply.

[@kevinwalters5160]

A lot of consumer loans/debt are either variable rate or short-term which is essentially equivalent to variable rate. Long-term (say over 15 years) fixed rate consumer loans are relatively rare even in the UK residential property market. You're correct in the sense that this "student loan" structure is very unusual with its rigid long-term nature and lack of prepay options. The central bank's current direction is to target an inflation rate to keep it at a low, stable rate and European rules are supposed to keep their decision independent from the whims of politicians. There's a small chance that could change but the democratic process is also there to eventually correct this. Relating to long-term risk. at 53:14 Mr Lewis does cover with the highly problematic issue of an irresponsible Government changing the terms and conditions on existing loans retrospectively. This would be a breach of contract for a contract with a private company...

[@frusciantesplectrum7980]

Unless you need a specific degree for your field, you are a fool for going to university.

[@ModerateObserver]

I think that very much depends what kind of job you are looking to do. Even basic admin roles ask for degrees.

[@sofiadf4688]

Completely agree. Dont know anybody using their degree apart frpm drs dentists and scientist/ engineering friends of mine and IT engineers. IT can be self taught now so no real need to go to uni unless you cannot self teach .

[@alexanderthegreat445]

D E B T

[@tc9634]

@@flourisho1934 scam

[@TheJohnM]

My dad said "I hope you don't expect me to make up the difference" ....before I even asked him. lol. Luckily, I got a £2000 a year bursary from my university.

[@meganbarker4238]

I feel as if I have been conned

[@123cheezecakehd]

haha you got played sucker! Wait, so did I...

[@Miks2092]

a lot of people graduate then end up in jobs that require no degree. Most of these jobs can still pay well above the threshold. So, now these graduates are basically being taxed an extra 9% on all there salary above the threshold. Working in London you could easily find yourself losing 9% on half your salary, for life. If you are on PAYE salary there is no way to avoid this.

[@jmac575]

This is what school pupils need to be taught more off. Real life issues

[@DAHQatar]

The key factor is usury not how much you are earning.

[@aneesahmed2464]

Mortgage, student loans and credit cards this generation and the next generation will not own anything till they're 60 by then the NHS will be privatised too, sadly I think the upcoming generations will be drowned in debts

[@pja7]

But the government can reduce the amount you earn before tax and increase the interest rate as they have just done on both counts

[@holahovito11]

So I was better off going to Uni a year later and starting on plan 2. I earn 38k a year so pay alot more than someone would if they were on 38k and on plan 2. Threshold on plan 1 is alot lower so I send up paying £140 a month instead of £85 on plan 2. Biggest scam going.

[@myzuk9989]

yeah, plan 2 is better for most people but if you increase your income then at a point plan 1 becomes better

[@paulfaulkner6299]

The young people attending the classes should be told what the classes cost and that if they mess around and / or don't attend, they WILL get the bill for the class. The universities themselves should be told if they take on village idiots who are incapable of passing the course, then they (the university itself) WON'T get paid. Education for our kids should be FREE if they attend. Successfully educated people will have worked hard to get the achievment AND will pay more in tax anyway! Alternatively - go to education and study hard, learn everything you can and get great marks AND THEN LEAVE THE COUNTRY! Go and earn a living and enrich another country by paying your taxes there!!! This country is stark raving mad for punishing people who are working hard doing the right thing. If I were a young man again, I'd take their education and loans to get it and then leave for sunnier climbs. UTTER madness and unforgivable

[@regina1892]

Martin Lewis should be the next PM of Britain!

[@stephendale5897]

I was aware of the wholly inequality approach to living cost...so my daughter is entitled to 4500k to live on, her accommodation is 5750/yr... hmmm ...so I pay 40% tax ...then I have to borrow money at commercial rates, no 30 yrs at rip + 3%, no write off, to support my supposedly Independant daughter, or she hasn’t got anywhere to sleep.... so if I don’t agree with her choice of course can she be truly Independant....it’s a flawed system that penalises the middle income earners again...it reduces the choice of the students who come from middle income households, as they might not be able to afford to go ....

[@nopy99]

So basically all these young-uns are being told " don't worry about your debt, you never need to pay it off" . hardly a good life lesson on taking financial responsibility for your actions.

[@Breadstar90]

The best “loan” you’ll get in your life. Especially with the so called “great reset” coming in, I’d be swiping at every penny i could get

[@tc9634]

The government are the ones rho have behaved irresponsibly with this stupid and fraudulent scam of a system.

[@peaceformula5830]

@@tc9634 Damn right. We were brainwashed and forced to go to university

[@ingridlinbohm7682]

University is good for those who will gain from it intellectually because they love the subject they studied and find it a life long love affair. I have been to two universities. One taught the subject so badly that it was a waste of time. The other university taught a different subject extremely well. Both subjects are crucial to my intellectual life. I also I went to a Polytechnic which was mocked by its students but this was unfair because their ability to teach was better than my first university. My first university overall was good it is was just that the faculty I was in was trotting out sceptical nihilist rubbish. Students should be careful about what they love. Fortunately I did not pay for my education being a student of the 1980s and 1990s except partly living costs for the first university as I could not get a living grant because my Father refused to sign a form declaring his income as he said he had to higher income for me to get a grant. Fortunately I had enough money due to getting a grant elsewhere. The last university was paid by many old ladies and donors being handed a collection bowl! Thank you for your kindness my donors.

[@alicehammond7438]

12 per cent interest? Yeah that went well Martin.

[@richardfowler9901]

Loads never intended to pay it back Bob

[@magnus9701]

what happens now ,shafted with new interest rates

[@jm5789]

Martin for prime minister

[@paulaabdul3698]

Dear young teenagers don't bother with University it's too expensive!!!

[@paulaabdul3698]

University isn't worth what it says on paper!!! our children are riddled with worry & working part time jobs & not having time for their friends family.

[@guitar999able]

I am 15K in debt and will never use my degree. Don't go!!

[@timpowell516]

did you watch the video

[@flourisho1934]

Hello Acousticguitar, email Gina on gina@creditmasterfix,com she would help you clear your 15k debt ... you can just look them on their website on CREDITMASTERFIX,COM and dont forget to thank me later

[@Blacksoul444]

@@timpowell516 why should that affect him necessarily? Did you watch the video?

[@timpowell516]

@@Blacksoul444 yeh I watched the whole thing, although 4 months ago. However, the point was that thinking of it purely as debt isn't the right way to think about it.

[@timpowell516]

@@Blacksoul444 with the said, of course if you're actually NEVER going to use a degree in any way shape or form, then indeed - don't go. But how many people is that really? You'll never need to pay it off if it all goes that badly wrong!

[@rafavaliente741]

rpi nowadays is a killer