The TRUTH about STUDENT LOAN PAYMENTS

The TRUTH about STUDENT LOAN PAYMENTS - UK

Рет қаралды 44,461

4 жыл бұрын

Nowadays a lot of people go to university and a lot of those people apply for student finance to pay the tuition fee and living expenses.
it is important to know how student loans actually work so you don't get caught by surprise when it's time to pay.
i have made this video so you are informed of what is actually the case.
The information in this video is good as of February 2020 and is for England and Wales only, information for Northern Ireland and Scotland differs
Credit card: • HOW DO CREDIT CARDS WORK?
British Airways American Express Referral Link: amex.co.uk/refer/sULTAsyEgm?XL...
Disclaimer: I am not a financial advisor, anything presented in this video is for entertainment purposes only. Only you are responsible for any financial decisions that you make.

Пікірлер: 259

@tomatofeind2019 3 жыл бұрын

My friend did a 4 year uni degree, worked 2 years, met a rich guy, got married and had kids - never intends to pay another penny more! She'll just wait til it's wiped in 25 years time. Moral of the story; be a pretty girl

@DaddySantaClaus 2 жыл бұрын

classic woman style. that is why im single

@cmf1402 2 жыл бұрын

@@DaddySantaClaus username fits well lol

@DaddySantaClaus 2 жыл бұрын

@@cmf1402 I have this for over 10 years 😂 Thanks though

@abdullaaljaf 2 жыл бұрын

In that case she just wasted 4 years

@tariqbahoussain1442 2 жыл бұрын

@@abdullaaljaf mate There r many people who also wasted many years at university just to get free money 💰

@passivepete4702 4 жыл бұрын

wow, talk about enslave the graduates. the best bit is, when you're at uni, its so easy and normal to just grab these loans (I was one of them) did 'they' see us coming or what. forget uni. just go and work then pay for studying along the way when you find something you are really interested in.

@Sultanrx 4 жыл бұрын

Its a tricky thing, depending on what goals you have, you might need to study and then there is no going around taking student loans to pay the tuition fees.

@Bringon-dw8dx 3 жыл бұрын

That simply isn’t possible for anyone. My medical degree will put me in about 80k worth of debt- I worked 2 jobs throughout medical school and that didn’t even cover the gap between my student loan and rent! It would have taken me decades to earn enough money to pay for medical school, by which time it would have been too late!

@g0801215 2 жыл бұрын

The only loan where the government can retrospectively change the conditions of the loan.

@GenZInvestor 4 жыл бұрын

I'm from Canada, so it was great to learn how student loans work over seas! Thanks for teaching me man!

@Sultanrx 4 жыл бұрын

Thank you for watching🙏

@johnsmithandthepsychedelic9216 20 күн бұрын

Is it you, Mr Lahey ? 😊

@ah2216 4 жыл бұрын

Honestly so helpful!! I think I am much more clear headed on what to do next!! Thank you so much!

@Sultanrx 4 жыл бұрын

Glad it helped 🙌

@airbnbhomeincreteislandcha952 Жыл бұрын

What about if u work aboard😂

@cramsa Жыл бұрын

The income/salaries aren’t being adjusted for the DEBT LOADS… for example, in America, a skilled tradesman makes about $60,000 about the same as a regular college graduate… but the college graduate has monthly debt payments of about $300/month on average… that’s approximately $5000 of gross tax income SO THE SKILLED TRADESMAN IS TAKING HOME MORE MONEY than the regular 4 year degree college degree person… that’s $60k vs $55 in reality…. The professionals like pharmacists, veterinarians, nurse practitioners, take home about $100-$120k a year but their debts loads are about $150-$200,000 easily. A MASTER PLUMBER actually takes home more money than a pharmacist or veterinarian after you factor in the monthly debt repayments… master plumbers make $80-$100k a year. An air traffic controller is taking home more money than a pediatrician or primary care physician too… air traffic controllers require an AA at about $20,000 total and make $120-$150/yr but a pediatrician has on average $200,000-$250,000 school debt but makes only 25% more than the air traffic controller… 10x the debt just to make 25-50% more doesn’t make economic sense!

@tankthepitbull520 2 жыл бұрын

So blessed I got through education without debt, love my parents ❤️

@jaketalksfinance8034 4 жыл бұрын

Dont know how i missed your video for 2 days but im here now an great content

@Sultanrx 4 жыл бұрын

Thank you Jake 🙏

@travaskanazori555 3 жыл бұрын

Useful video, thanks!

@wonglee9738 3 жыл бұрын

I pray whoever reads this will be successful, keep fighting for success, them rich stay rich by spending like the poor and investing why the poor stay poor be spending like the rich yet not investing, Roar!! Invest, earn and be successful.

@robertharton6237 3 жыл бұрын

If you want to be successful have the mindset of the rich spend less and invest more don't give up your dreams..

@fastlinkdeliverycompany6402 3 жыл бұрын

@@robertharton6237 yes that true.

@fastlinkdeliverycompany6402 3 жыл бұрын

Impressive, I realized that the secret to making a million is saving for a better investment.. I always tell myself you don’t need that new Aston Martin or that vacation in Hawaii just yet and that mindset helps me make more money investing.

@robertharton6237 3 жыл бұрын

yes it really true to save for a better Investment.

@wonglee9738 3 жыл бұрын

You’re right investing now should be at the top of wise individuals list because in few years you'll be ecstatic with the decision you made now

@Blackdiamond929_ 3 жыл бұрын

Every once in a while I get the student finance loan statement with the compound interest . I knew a friend who was trying to pay it off in lump sums say a couple thousand but as soon as they stopped the interest crept back up 🥴🥴🥴🥴 and wow 67k 🤯😳 . The interest Is like a mortgage

@iainruss8711 3 жыл бұрын

Great analysis and great video

@Sultanrx 3 жыл бұрын

Thank you 🙏

@Billbo95TKD 3 жыл бұрын

Have you got the website you used for the student loan checker bit where you plugged in the numbers? Thanks

@jononfirebudgetinginvestin3897 4 жыл бұрын

Just found your KZfaq channel! Loving the content! What do u use for video editing software? I dig it :)

@Sultanrx 4 жыл бұрын

JonOnFIRE Appreciate it man , thank you. I use final cut pro x

@teclasicbaldi 3 жыл бұрын

if you cannot finish the course you applied for, and want to cancel the loan, there are penalties to pay?

@taylorpearl1413 4 жыл бұрын

Hi! I found you on The Content Bug's Page and wanted to check out your channel and spread some positive vibes! Hit the 👍 button, best of luck with your channel!

@Sultanrx 4 жыл бұрын

Taylor Pearl Thank you, much appreciated 🙏

@Derek032789 4 жыл бұрын

There are income-driven repayment plans in the USA that work in a similar way to UK repayment, but in the USA, the remaining debt is wiped after 20 or 25 years depending on the specific income-based repayment plan.

@Sultanrx 4 жыл бұрын

Interesting 🧐

@Traps_Trades 4 жыл бұрын

If only I would have thought about these things before going to college! I ended up with a little over $30,000.00 and fortunately buckled down and paid it off as quickly as I could after graduating.

@Sultanrx 4 жыл бұрын

Kenny B Going to college has its benefits, many experiences you wouldn’t get elsewhere. if i knew this before, I would’ve tried extra hard to get a scholarship lol. What was the interest rate you had on your loan?

@Traps_Trades 4 жыл бұрын

Sultan’s Financial Journey same, I’m glad I went because it put me in a good position today. But they ranged from 4.25% - 6.5%. I paid them off over a course of 9 months as quickly as possible. Thanks for the video!

@Sultanrx 4 жыл бұрын

Kenny B Thats awesome man! And thank you!

@ah2216 4 жыл бұрын

Will definitely share it to my friends

@Sultanrx 4 жыл бұрын

Much appreciated 🙏

@instrumentalle 2 жыл бұрын

what happens if I leave the country to other one and I will not earn as much over 28.000£ in other country?

@annarichardson7794 Жыл бұрын

Good video. I am tired of people like Martin Lewis saying the amount of interest does not affect how much you pay. While true on a month to month basis its completely misleading. If interest rates for this guy's loan were 0%, then he would pay the £50k he orginally borrowed by year 19 of the loan, leaving him with no repayments for the last 11 years of his career - this would save him £45000. This loan is basically just an additional rate of tax young people have to pay for their whole lives. If you had a postgraduate loan too you could be paying 15% more tax than some boomer that will likely be your boss and giving you crappy wages and bonuses, that you should be grateful for, even though they get destroyed by tax; up to 77% if you are successful in your career. Its disgusting.

@Nousmourronsseuls 5 ай бұрын

Agreed. Universities used to be for the academic elite. The numbers were limited so the cost was limited and the people who went to university tended to get higher paying jobs and paid more tax throughout their lifetimes, thereby justifying the state’s “investment” in them. In short, there was a benefit to the country as a whole. Now universities are pretty much open to everyone (thanks to Tony Blair). More people, more cost. Those that go will not necessarily get high paying jobs. They will not pay more tax, so they need to fund this new egalitarian world somehow. They thought the fairest way was that those that go should pay to the extent they earn over the threshold. Of course, a huge number of people currently going to university should not go and should just get a job. Companies should be incentivised to provide proper training and pay, instead of shipping in people from overseas at lower cost. The whole system needs to change.

@antzplayz5381 4 жыл бұрын

Banging ❤️

@Sultanrx 4 жыл бұрын

🙏

@bestymusic4845 Жыл бұрын

I am student in the UK and was wondering if there was any grants/loan that support people in the UK with bad credit? Thanks

@ES-cf9jx 4 жыл бұрын

So informative👏🏼👏🏼

@Sultanrx 4 жыл бұрын

Esraaa ا 🙏

@thesupremepizza6893 2 жыл бұрын

I've got 1 year left at university, and am already a little under 60000 in debt. I'm starting a full time job on the side now, and am paying for the final year myself, and will most likely spend the next 4 or 5 years living frugaly trying to pay it off. My question is at a certain point, paying it off seems useless, as intrest just negates what you put towards it. Is it worth it? If it was any other loan, it would be considered predetory, marketing it to under 18's.

@Sultanrx 2 жыл бұрын

It is difficult to think about, mostly depends on the person. I personally do not see it worth it to pay off early for me. As my interest alone now is over 3k a year and with over 70k debt, it’s pointless for me. And yh the older i get the more i think about how baffling it is that around 18 you have to make a decision that big, without fully grasping the extent of it

@thesupremepizza6893 2 жыл бұрын

@@Sultanrx The thing is, i have no idea how much i will earn after university. Average starting out salary in my industry is around £30000. In some places, it's £70000. Salaries range all over the place. it could cost me anywhere between £50,000 to £150,000 over the next 30 years if not paid off quickly, or kept low. If the loan was regulated like any other loan, the most they could charge is twice the total loan amount taken out, and it would be illegal to promote it the way they do. It's a broken system.

@kenl5263 3 жыл бұрын

do you recommend us to borrow the maximum amount or the least as we are paying back the same amount based on our salary?

@mazzy_vc 3 жыл бұрын

You can't choose. How much loan you get is based on the income of your parents/care givers. The poorer your family the more loan money you will get.

@detectiverick9934 3 жыл бұрын

I just left university after one year after I realised just how much of a scam it was

@Sultanrx 3 жыл бұрын

They have made it very unfair for our generation, i commend you for realising it early. Though unfortunately for certain career paths you must acquire accreditation at university, there are other paths where you can learn all of it yourself. I wish you all the best with your career

@detectiverick9934 3 жыл бұрын

@@Sultanrx thanks, im going into film so yeah im lucky that i do have other options

@liban2 3 жыл бұрын

how is it a scam??

@detectiverick9934 3 жыл бұрын

@@Bandzior1337 Apprenticeships and working on small indie films. Basically finding opportunities anywhere you can. Might be a bit harder to find places for CGI artists without uni but I am sure there are apprenticeships.

@Bringon-dw8dx 3 жыл бұрын

@@liban2 lots of money for little teaching for most courses

@santa173 2 жыл бұрын

By the way, your debt will be erased as far as the legislation continues the way it has done. If law changes on next decades, people who are not rich will be fucked.

@kurvahonny9726 3 жыл бұрын

Quick one, are you allowed to use student loan to invest into the stock market?????

@creativeamerican8811 2 жыл бұрын

I went to a top Uni and got a degree… it’s been totally worthless. I’m now an Artisan Baker , had to learn a totally different trade and start again 10 years later, the Uni wants repaying… they won’t be getting a penny.

@tlfa5554 2 жыл бұрын

Hi i have a question , are you earning enough to start paying the loan? If so , how does it work will they start deducting it from my bank and how much?

@zer0projection Жыл бұрын

What did you study at university?

@creativeamerican8811 Жыл бұрын

@@tlfa5554 Good day, I am not earning enough to start repaying it. I purposely don’t work enough to pay it back. I have an allotment and grow all the food I eat and all the drugs I smoke. Didn’t learn any of that at Uni either..

@creativeamerican8811 Жыл бұрын

@@tlfa5554 oh sorry but yeah, I think once you start earning a certain amount they begin deducting it from Pay like Taxes.

@rnbman1982 Жыл бұрын

Hi, i am bit confused.. What about if I drop out of uni after 2 years and for rest of my life i never meet repaying requarments, I want to say for rest of my life i ll be on minimum wage i never gonna earn above certain amount. Is that mean i have never to pay it back???

@Sultanrx Жыл бұрын

Pretty much, if you dont meet the threshold then you dont pay. Like with national insurance if you are below certain thresholds you dont pay.

@beigelover95 3 жыл бұрын

If I could tell my 18 year old self one piece of advice, it would be to NOT GO TO UNI!!! Even though I obtained a BA and a PGCE (which allowed me to find work really easily overseas and be regarded as 'valuable' by schools here) . However, there are so many routes and now im paying so much for it.

@sonitclef8675 Жыл бұрын

what would you have done otherwise?

@killergaming24 Жыл бұрын

it really depends though, if you want to pursue in a stem repeated career in most cases getting a degree is mandatory

@alfieshanks6555 Жыл бұрын

What to do otherwise

@OngoGablogian185 4 ай бұрын

I was so ignorant on mine. I had no idea there was a high interest on the loan. The bloody thing just keeps growing.

@AM-dn1iq 2 ай бұрын

Big mess

@fabian3538 2 жыл бұрын

Glad I saw this video, although I’m now very concerned.

@tomb.9348 4 жыл бұрын

Hey dude, what phone do you use to record your videos? :)

@Sultanrx 4 жыл бұрын

Hey, i use an iPhone X

@tomb.9348 4 жыл бұрын

Looks Naiz and Sharp!

@Cxesar 4 жыл бұрын

Afghan? Kuwaiti? King!! Make a video on what your university lessons were and if you would recommend it!

@Sultanrx 4 жыл бұрын

Cxesar i might do that in the future!

@birutemerliunaite2989 3 жыл бұрын

smart dude.

@Alyssa-nm7wu 4 жыл бұрын

If you are entitled to more maintenance loan, is it best to take the full amount or take less in the long run?

@Sultanrx 4 жыл бұрын

Honestly depends on how much you need the money, if you do need it and will make good use of it, then i guess its better to take the full amount, however if you know yourself to be spending on unnecessary stuff then that speaks for itself

@Alyssa-nm7wu 4 жыл бұрын

@@Sultanrx thanks for the reply, I could do without it but it would make a more student life more comfortable but I don't know if it's worth the interest? I also do pharmacy so as you know when I leave after 4 years I'll have plenty of debt 😅

@Sultanrx 4 жыл бұрын

Alyssa My Pleasure :) . The government’s decision to cut grants is very annoying, only putting us in more debts, the grant essentially become the extra maintenance loan you are taking out. You can always trial it for a year. Take the full amount or not. And see how that goes for that year and then decide whether to continue to do the same for the following years. P.S. don’t buy all the books they recommend lol, not worth it. Get used ones if you really want them.

@Alyssa-nm7wu 4 жыл бұрын

@@Sultanrx great thankyou!

@ashamusamohamed4558 3 жыл бұрын

what if i work in a different country - will i still need to pay back the university loan?

@orkidekiris1188 3 жыл бұрын

Yes check on sfe website ypu still pay back if you are working abroad. İf you dont tell sfe you get a hefty fine

@soyliza4682 3 жыл бұрын

So Should i Do student Loans or No .I Dont want to be scammed so Comment

@Animalistic_creatures 3 жыл бұрын

Where did he go🤔

@handsomesquidward5160 2 жыл бұрын

Why don't you upload anymore?

@Liz-pj5xt 2 жыл бұрын

So according to that you'd gave to pay 96k right

@nataliechurne8243 3 жыл бұрын

Hey! Would I pay back less in the future if I take a smaller mantainence loan?

@fixmycreditgmailcom9115 3 жыл бұрын

Yes of course why not reach out to fixmycredit9 G-Mail to guide you

@drbrungus 2 жыл бұрын

Do you have any comments on how they're repaid with self-assessments for sole traders?

@Sultanrx 2 жыл бұрын

HMRC will work out how much you pay from your tax return and you pay the SFE payment at the same time as you pay your tax (as per their website)

@drbrungus 2 жыл бұрын

@@Sultanrx do you know how it’s calculated? It seems really vague on the gov website.

@Sultanrx 2 жыл бұрын

I believe it is 9% of any profit you make above your threshold, i.e. if you you make £35,000 and your threshold is lets say £25,000 then they would take 9% (£900) of £10,000. There are online calculators though

@dedasalmeida9047 3 жыл бұрын

This is why I'm thinking in going to apprenticeships instead of unis ... I'm only 20, I hope made the right choice

@wonglee9738 3 жыл бұрын

Yes you did

@wonglee9738 3 жыл бұрын

And you can still try to Invest and earn your profit in just 5 working days and you can uesd the money to purchase your life ok

@judithhaynes1095 2 жыл бұрын

yes

@Dan-iu5nr 2 жыл бұрын

what happens if you don't pay and living overseas? because the amount in pounds to what I am paying in Eur is not worth what they think in England is fair.

@Ms-xq6jx 9 ай бұрын

Depends on your debt. If its like 30k then nothing, 80k+ and they could pursue legally.

@restlesscow2137 3 ай бұрын

@@Ms-xq6jxwhy those thresholds? Is it a guess or does this happen?

@ronan7664 Жыл бұрын

Basically he’s saying go to uni if you wanna be Walter white and don’t go to uni if u wanna be Heisenberg

@hafzahameed1911 3 жыл бұрын

0.34 I thought it was 25000?

@VortexGaming1121 3 жыл бұрын

Would you recommend trying to pay off the loan ASAP so stop paying so much in the future

@ld7096 3 жыл бұрын

No. It’s simply a graduation tax. You’re better off savings and investing! You will struggle to keep up with the interest rate as well 😅

@lacerav5818 3 жыл бұрын

Try to pay it off as soon as possible

@brightengineering6295 3 жыл бұрын

You start paying back when you earn 28k and above not 21k.

@CommanderConker 3 жыл бұрын

The income bracket changed, not sure what year.

@brightengineering6295 3 жыл бұрын

@@CommanderConker www.ucas.com/student-finance-england/repaying-your-student-loan

@brightengineering6295 3 жыл бұрын

@@CommanderConker if your yearly income is £28,000 you literally pay back £5 a month.

@tariqbahoussain1442 2 жыл бұрын

lol 😂 how about I earn 21k per year for 25 years and not pay it back at all. This threshold is ridiculous it should really be 16k before paying back student loans I mean 28k way too high.

@costingabriel2789 2 жыл бұрын

Does this student loan affects later on the credit score or the mortgage application?🤔

@jomo7002 Жыл бұрын

@pallerlaraju31 4 жыл бұрын

Any education loans for international students..? If how

@noorm2916 4 жыл бұрын

So nice❤️❤️

@Sultanrx 4 жыл бұрын

Noor M Thank you🙏

@dunyam6443 4 жыл бұрын

🙏🏻

@Sultanrx 4 жыл бұрын

🙌

@mx6837 3 жыл бұрын

Is it wiser to take the normal or higher maintenance loan?

@fixmycreditgmailcom9115 3 жыл бұрын

It a choice to make why not visit an expert fixmycredit9 G-Mail

@mr.kalagh9879 2 жыл бұрын

Say no to Student Loans

@Manny-uv5cd 3 жыл бұрын

I’m still in college but I can’t see how I’m going to pay for this. I come from a 3rd world country. 😭

@sweetdeception5185 3 жыл бұрын

Bruh I’m in year 8 and I’m already thinking about finances

@KazSw3 3 жыл бұрын

What if you only done one year should you pay it off

@helloskipontelegram7227 3 жыл бұрын

Contact C_forcehacks on instagram am rest assured he can get a loan for you and he will also educate you in areas were you are having doubt.

@ozzy1243 2 жыл бұрын

m8 ur accent is so mixed. great video, thanks

@saads8253 4 жыл бұрын

👍

@Sultanrx 4 жыл бұрын

Saad S 🙏

@Mariasamrah Жыл бұрын

If you left the country would you still have to pay the loan back 👀 ?

@richard63204 Жыл бұрын

Yes

@jakubm2347 2 жыл бұрын

Why the hell would you need 50k anyway? haha I thought my 6k was a lot and im 2nd year uni

@georgealexandru3282 2 жыл бұрын

Better than USA

@moseso2113 2 жыл бұрын

wow

@abdullahhussain9589 Жыл бұрын

!!!!! NOOOOOO!!!!! WHY IS THERE ALWAYS A VIDEO AGAINST EVERYTHING???!!!!!😡😡😡🤬🤬

@konnor9577 4 жыл бұрын

can you take a loan for a masters degree and a PHD ?

@Sultanrx 4 жыл бұрын

You should be able to take out a postgraduate loan for both, subject to your circumstances

@konnor9577 4 жыл бұрын

Are the payments the same as the undergraduate loan ( Deleted after 30 years)?

@Sultanrx 4 жыл бұрын

KONAN KONAN if taken from SFE then that would be the case (under current rules), however if the loan is taken from anywhere else, this would differ.

@CommanderConker 3 жыл бұрын

Get out. GET OUT!

@muhammeddiloarhussain1701 2 жыл бұрын

If I die before pay this loan. Will they take my house.

@whooopsiesssssssss9770 2 жыл бұрын

No it wipes out that’s only mortgage and stuff student loans r wiped out after 30years and if a person dies

@monikamalviya5231 3 жыл бұрын

He is saying soooo fast

@muhsingun5656 3 жыл бұрын

Is it worth to take out £10,000

@maxinejones4611 3 жыл бұрын

Do you have problem with increasing your credit score and removing your poor credit reports, I've got a good news for you , my credit score was just increased from 470 to 820 and and all my awful credit reports has been cleared, he also helped take off hard inquiries in 11 days. Absolutely legit and changes are visible on 3 credit bureaus, let me introduce you to Royson Brandon, you can contact him through his mail ‘Royson@creditmasterfixllc.com' and thank me later.

@orlandotodas1585 3 жыл бұрын

Hi, I'm from the Philippines, may I know how to apply student loan for international student?

@orkidekiris1188 3 жыл бұрын

Only for uk students

@nugets24 3 жыл бұрын

From the images and memes you've put on top. You can just tell you're a joker 🤣

@leestalker8256 Жыл бұрын

I attempted suicide because of a 16K student loan

@SaSo-mk6yh 10 ай бұрын

Well at 16k you would likely reduce the debt by paying an amount that is higher than the interest is increased by.

@tariqbahoussain1442 Жыл бұрын

Haha😂 some students now work at Tesco for under £21,000 they never really cared about a degree. Ah man too funny what money to pay back it’s like thank u for free maintenance money and grant. Government need to lower the threshold to £10,000 to start paying back otherwise any student can study for four years with the intention of getting free taxpayers money for accommodation and travel among other things.

@SaSo-mk6yh 10 ай бұрын

That is true but the average person is usually a bit more ambitious than that 😅