While doing some research for an article I’m writing about the new student fees, I stumbled upon an interesting piece of information. On the £3k system that I’m on, my repayments will be 9% of my income over £15000. On the £9k system, I would be paying 9% of my earnings over £21000.
(Not surprising how I have to go to two different government websites to get some simple information. I wonder if they make it this awkward to find deliberately.)
To put this into perspective:
| Yearly Repayments on: | ||
| Income | £3k System | £9k System |
| £15,000 | £0 | £0 |
| £20,000 | £450 | £0 |
| £25,000 | £900 | £360 |
| £30,000 | £1,350 | £810 |
| £35,000 | £1,800 | £1,260 |
| £40,000 | £2,250 | £1,710 |
| £45,000 | £2,700 | £2,160 |
| £50,000 | £3,150 | £2,610 |
| £55,000 | £3,600 | £3,060 |
| £60,000 | £4,050 | £3,510 |
| £65,000 | £4,500 | £3,960 |
| £70,000 | £4,950 | £4,410 |
| £75,000 | £5,400 | £4,860 |
| £80,000 | £5,850 | £5,310 |
| £85,000 | £6,300 | £5,760 |
| £90,000 | £6,750 | £6,210 |
| £95,000 | £7,200 | £6,660 |
| £100,000 | £7,650 | £7,110 |
So on the new system although you have a larger, longer lasting debt; you actually pay less per year. Now although long term debt does suck, if I was in my early twenties earning around £25k per year, I think I’d rather have the extra £540 in my pocket.
I could go to amsterdam for a week on that.