Hacker News Reader

That's sad though. This means that most students never earn more than 25k per year, even if they studied..

Actually, if we assume the previously posted £10,000/year, and three years for a Bachelor's they'd have a £30,000 debt. Assuming no interest, since it's only the amount over £25,725 that's taxed they'd have to average £25,725+((£30,000/30)/.09), or £36,836.11, over 30 years to fully repay, which I think is a much more reasonable number outside of HCOL areas.

I'm not sure if they account for inflation or have any fixed interest on the loans. 30 years without any would be pretty crazy.

Interest rates vary depending on how much you earn. https://www.gov.uk/repaying-your-student-loan/what-you-pay

It's basically inflation + 3% if you're earning more than £45k/yr+.

That makes a lot of sense, thanks.

They have above interest earnings for higher earners, and a lot of students take out loans of nearly twice the size to pay living costs, so a lot of people whose earnings average over £40k in 2019 money won't pay all their loans back either.

Reply on news.ycombinator.com