Student Loan

iPad / Références

Student Loan is relatively simple application that gives you insight into the payments you will have to make to repay your student loan.

If you know (or estimate) your starting salary and outstanding loan you can enter these values directly and see how much interest your will be charged per month, the payment from your wages each month, the amount of your salary that is over the threshold for repayment and how your salary increases over time.

A table gives a consise view on some the top line numbers such as the total interest charged, total payments made, length of the loan and total earning over the period.

This version uses the UK student Loan Company Plan 5 as a template, making these assumptions:

- Interest is charged at RPI (retail pricing index, a measure of inflation), this is currently relatively high but capped at 7.3%, however for this model we use the average over the past recent years at 3.1 %.
- The repayment threshold is currently £27000 and increases with RPI
- Salary also increases with RPI
- Repayments are made at 9% of salary over the threshold
- Loans are written off after 40 yrs

As described this type of modelling makes various some assumptions about the future, for example the RPI and your salary growth, even the rules regarding the aspects around the loan conditions can vary over such as long time frame for example the fraction of your salary above the threshold being applied for calculation for repayment, please bare in mind therefore that the figures and graphs are estimates despite using the best information currently available.

Quoi de neuf dans la dernière version ?

Extra page to easily see how a range of initial salaries can impact total earnings and final salary over a working lifetime