how to calculate student loan debt it’s scary!!!

Student loans sting most 20 year olds into their adult life and beyond reducing the possibility of buying a house and living securely. Don’t get me wrong though, if you can get a student loan that generates a job and income of more than the loan in a few years you can pay it off nice and easily but if your on a low income with this amount of debt it can be a massive burden. 

First see if there are any grants (free non repayment loans) and internships (earn while you learn) 

Here’s an example schools don’t teach you! 

Student loan £60k 

Interest 2%

Loan term 20 years 

Repayment every year = £60k + 2% = £61,200

Repayment over 20 years £60k plus £2,100 x 20 = £42,000 + £60k = £82k total repayment divided  into 20 years is 

Total capital & interest repayment is £4,100 per year x 20 years is £82k 

That’s £341.66 per month  for 20 years 

If you can pay lump sums off asap this will reduce the interest liability and save you £2,100 interest a year accumulative. 

Make the long term calculations, not just the short term 

Good luck 

V x