I'm glad you made that point. "Student loans" in the UK are not loans at all, they're essentially a graduate tax with a notional value. The more you earn after graduation the more you pay, otherwise you don't pay anything. What loan behaves like that?
it has to otherwise their economy would not do so well. like look at the US. 30 somethings putting off having kids (smaller future workforce), putting off buying a house (student loans hold them back significantly) reluctant to invest in businesses, start a business and invest in the stock market.. Oooo yea they're not really saving up for a retirement because they can't. In the US people will likely be paying off their student loans long after the retirement age.
@@grumpyratt2163 Welsh student do pay tuition. It’s Scotland that don’t . Welsh students can get a grant that covers their tuition if they choose to study in the Welsh language.
"The states are a country! They should be friends" That was the most adorable statement to make when talking about a country where all the states get to make up their own laws and most of them would rather separate from each other entirely
Most things are like: Europe - we've got a sensible system where people get stuff for free and pay through taxes UK - we have a stupid system but at least we've tried to make it fair so that people don't needlessly suffer US - MONEY MONEY MONEY MONEY GIMME ALL YA DOLLA DOLLA BILLS YO
Average tax rate in the US: 14% Average tax rate in the UK: 23.3% In the mere 9.3% increase you get free healthcare, tuition loans you are not forced to pay back in full and many other benefits... US people: IT'S MY MONEY!!! Why would I give MY money to someone else. Meanwhile a random US citizen: Get caught in the crossfire in one of the many shootings. US: Give a tenth of your income for health insurance and still have to pay a shit ton just to care for a gunshot wound or straight up give away months worth of salary if you don't have insurance. But hey... I guess you save those 9.3% in tax xD
@@mairisberzins8677 Not to forget that Americans pay tax on ALL their earnings. British taxpayers don't get taxed on the first £10,000 (ish) they earn. Also Americans have to do their own taxes.
@@mercy871 The UK is considered distinct from Europe in many respects, namely the fact that it's not part of continental Europe, it was a much lesser integrated member of the EU and has now left, and is culturally much closer to other English speaking countries rather than European ones. Also when people talk about Europe they rarely mean to include the UK, especially if they're from the UK themselves. Just because the UK is considered a European country by proxy doesn't mean it's incorrect to talk about them as being two separate entities.
The whole Scottish uni is free to everyone but England, Wales and NI makes me laugh because anyone I know who studied in Scotland from NI just got an Irish passport so their tuition was free 😂😂
Really? I was told that it was all based on residency and not just citzenships. In my case I'm a dual citizen (Canada & the UK) but was told I would have to live in Scotland 3 years to get any free tuition.
That’s doesn’t work anymore. So many people took advantage of the loop hole you had to prove residency. When I applied to start uni in 2015, I’d have paid £9000 to go to a Scottish uni.
It does. It’s just that if you co-signed with someone else, they’ll come after them when you die. Most student loans are wiped out when you die but only if you didn’t co-signed with anyone.
@@rachaelevans8351 as long as your loans are from before you got married and your partner is not named on your loans they are not responsible for it, and if they take it out of your tax return your partner can file something so it wont affect their part of the tax return.
So knowing how bad student loans get over here in the US I decided very early on that I would not taking out any student loans for my college degree... I have been in college since January of 2014 and will finally graduate this December because of how I had to take classes in order to afford everything. My advisers contently yelled at me about how I was not going to graduate "on time" and how the decision I was making was not a very smart one because of how slow I was going through school and now I just want to send them this video and say "well this is why I did it". I will now be graduating debt free and could not be more excited about it.
I did something similar, it took me 8 years to get a bachelor's degree (a 4 year degree) because I never took student loans and worked while in school, interned over summers and took a year off to work every other year. I don't regret any of it. I graduated later but with lots of experience and now don't have debt. the idea you have to graduate "on time" is a huge scam
oh my gosh, this is so sad and upsetting. I'm from Austria and I went to university (5 years) for free. Let that sink in. Only if you attend a special university for applied sciences or in general you exceed the minimum period of study by 2 or more semesters, you have to pay 363, 36€ per semester. I am so grateful, that this is the system in place here and we're not crippled by student loans for the rest of our lives. I feel for all of you, let me give you a virtual hug.
UK students are not crippled by loans, whatever they feel about it. In practice, it has very little impact. (Source of my information on this: I am a University lecturer and the Admissions tutor for my academic school, so I have to know this stuff. Also, my daughter is a student so we had to fill in the student finance applications for her).
@@timothyjames6412 Exactly - the UK's system is one of the fairest going. I think it strikes the right balance between letting poorer students go to university without being financially crippled, while also not taking (too much) money in taxes from people who never went.
@@timothyjames6412 How does being indebted for a few ten thousand pounds NOT impact a person just starting out? Of course it does. They might not be crippled, but they DO spend the first years of their professional lives working to repay their debt. You should not have to go into debt just to get an education imo. I could study in a system with cheap education and didn't have debt after my studies. And I can guarantee you it allowed me to be much more relaxed about what job i took and which i didn't, and could even afford not to work every now and then while figuring out what i actually wanted to do. I now am a super motivated teacher. And i came to the realisation I wanted to become a teacher during those first professional years, and even could go back to evening shool to get my teacher diploma, again at barely any cost. If i had had a debt of 20000 euro or more, and HAD to have worked to repay that, i probably never would have become a teacher. So you can be sure that student debt impacts young people in ways you probably never even considered. To be free from debt gives you financial freedom, and thus also freedom in your life and life choices.
@@johanwittens7712 But, in the UK which is where Timothy was talking about, if you went to uni and had £60k debt and then earned a small amount of money (25k/yr) you wouldn't pay anything back! You could go back to uni and study again and pay nothing back for a few more years Then you can take another year out after uni and pay nothing back. Then once you find a well paying job, IF you earn more than £27k you pay 9% of what you earn over that amount. So you pay back money, but only if you can afford it. It feels like a fair way to mainly tax only the people who use the service and who can afford it. The cost of education comes from somewhere surely. Either everyone is taxed to pay for the people that use it, or the people that use it are given a small, fair extra tax. 'Free' education is surely just lumping the cost into everybody's tax so you are still paying for it, but so is your mate who didn't study and only just earns enough to get taxed. Edit: in the UK it is definitely more like a tax for 30yrs after you graduate (but you stop paying if you pay off what your borrowed) rather than a loan or debt.
I’m paying a hefty £3 a month towards my student loan now... the panic I had about student loans after doing 4 years in uni to end up paying £3 is great
Don't think he meant it, but I am an American living abroad, and a lot of the reason the American government is able to get away with being this cruddy to their own people is because Americans don't travel and don't realise the rest of the world is getting a MUCH better deal. Once we DO see it, we kinda want to RANT.
I've met many Americans who have come to the UK to study, live, or vacation, and they've said that the UK is better than the US, and the same when they explored other European countries.
The great thing about the UK system is it levels the playing field after people graduate. If you do well from your degree and get a great career that pays well you pay back your student loans for the privilege. If the jobs market is crap when you leave and you don't end up benefiting from your degree you don't pay it back (or at least not to the same extent). Also, I really like that (as far as I am aware) having UK student loan debt does not count against you when applying for a mortgage etc.
Yeah same with Australia, although I've heard of you only have a little bit of your loan owing whne you apply for a mortgage, it's good to just pay it off because it technically increases your after tax income slightly
Can confirm when we went for our mortgage they asked about debt, my wife said about her student loan and they were like “no that’s not real debt we don’t care”.
It does depend on the bank, student loan isn’t on your credit file but they often will ask for your current outstanding balance and will see your repayment amount from your payslips, so they will factor it into affordability criteria.
That's nice. In my country, students that got 4.0 GPA would get 100% discount or less, depends on family income. CGPA above 3.5 students also would get a discount. Students that gets below 2.0 GPA have to pay the semester tuition out of pocket. That mean perfect score students don't have to pay their debt. Also depends on your family income, you're only eligible for loan that's less than your tuition fee.
I see the uk student loan system as a graduates tax, and the amount you pay back depends basically on how well your degree served you, if your degree got you an amazing and well-paid job then you’ll pay it all off, if you spend your whole life on low income then your degree didn’t work as well so you don’t need to pay as much for it.
As a danish student, I find it absurd that you have to pay for your education. Students in Denmark get paid around £900 a month by the government to study!
This used to be the case in the UK (I was a student in the 80s and got a subsistence grant). The intention of changing to loans was to reduce the burden on the taxpayer, but it didn't work - the state still pays upfront, and recovers very little.
This is true in a number of countries and tbh free uni was an option for me but it was just easier to go to uni in Australia (I was living in the UK at the time I decided) and I prefer the university system in Australia over the European/UK model. I also got paid to attend university (and technically got more money than I have in loans, but obviously I used it for living expenses over the years I was studying). Whilst 'free' (or super low cost) uni would be nice I can understand the arguments against it and I don't mind the UK/Australian system where it does function like a tax for people that actually went to uni. The Australian system is getting worse and more expensive, with less support (although there is still some support that is far more accessible than the non-Scottish UK and it's still half the price) so I guess I'd say I prefer the 2010 model. If I go to uni again I'll probably go for free in Scotland but I would feel perfectly comfortable studying in Australia again, I don't feel that cost is prohibitive to anyone wanting to studying at a higher level in Australia. Living costs if you don't have a job might be prohibitive as the government support for students is below the poverty line.
Thanks man for bringing so much detailed information about education! I realized that it was a proper decision not to relocate to the US but to stay in Europe where I don't have to pay for my children's education. Otherwise I'd go bankrupt sooner than I say "I am so proud you joined this school"
@@mcbusted1985 Im sure he’ll feel super stupid. I can see it already, TamPTV waking up at 3:00 am, sweating and panting, he whispers “God these Scottish taxes, I feel so stupid for not being English and commenting that on TH-cam 5 years ago” “Well at least Im cute”
@@mcbusted1985 oh no, I pay roughly £10 a month more in taxes than the English and got a completely free education which enabled me to get this job in the first place...how awful...
I'm American, and I had the WORST luck when I was a teenager thinking about college. I was a B honor roll student, so not horrible, but not wonderful either. HOWEVER, just after I turned 18, I had my identity stolen, which tanked my credit score, immediately removing the remotest possibility that I could get a student loan. In the same period, President Bush removed the Social Security student grants, which I had been counting on because both my parents were already seniors at the time. Furthermore, I was not eligible for any grants or scholarships, because I had never been involved in extracurricular activities, mostly because I was a poorer student who lived on a farm, and I couldn't afford to drive back and forth to school out of busing hours. Essentially, I had all my avenues blocked, so now I am 32 and living off what I can get through agriculture while I try to get books published. Such fun. At the same time, with the passage of years, I am glad that I don't have a massive student debt to handle.
Robert Gronewold this sounds awful! It is a major shame that you were not able to get into school for this reason. My parents did not earn an income as my mum was disabled, had it not been from the sheer fact that I’m English and was able to get a loan through SFE I would not have made it. I think American systems have a lot to answer for in regards to this. However, I wish you luck on publishing. And at least you don’t have the debt! Always a silver lining.
I'm studying with the Open University here in the UK, in my 30s. It's a very well respected distance learning university here. They have existed for over 50 years and do a lot of collaborations with the BBC. I am not sure how the loan system would work, but they are accredited in the US as well as the UK and in our student groups I noticed some people studying from the US and enjoying it!
In the US, federal financial aid (via the FAFSA) is based on household income, NEVER on extracurricular activities or credit rating. Federal student loans are "guaranteed" which means a student's credit rating never enters the picture. Financial aid professional since 1993 speaking here.
@@fredflintstone6143 And I never even heard of any of that stuff until like two years ago, when I was 30. It's ridiculous how they never mention such things. Too late now.
@@robertgronewold3326 damn that sucks bro how about going into Trade school? No one in their right mind says less plumbers, electricians, etc For me though everyone always forgets the Trade schools. So might as well go into Trade school.
I got my master's degree in Newcastle Upon Tyne, the whole thing: visa, tuition, flights, room and board, misc fees cost 1/3 what it would to study in my home state of California . Not to mention it was one intensive year in the UK vs 2 years in the US.
Was waiting to see if they brought up the tik tok of the lady almost in tears over the fact that she took out an $80k loan and has paid over $100k over the past 10 years but her balance is still something like $78k.
Sad part about that video is that she exaggerated the paid vs owe situation...she posted a video and showed she’s paid ~83k towards principle and ~36k towards interest (so ~120k total). She still owes 76k or so but the loan wasn’t 80k, it was around 159k and she’s halfway through paying. Fucked up but in a slightly different way
The thing that's not mentioned with regard to the UK loans is that they've only been introduced recently, and during the time they've existed they've already been trebled, and now higher interest rates are coming in.. The way things have gone very much suggests we're on our way down a path towards a US style system, so while the system currently is relatively less horrific, we should still definitely be concerned
@@Teppishc I was thinking of the loan system yeah, but that's a good point about the fees themselves. For me the main concern is we'll start getting private companies buying up the debt like in the US, and then you'd have potentially multiple companies with their own repayment policies chasing you for the money. Terrifying to think of really, especially with how much the fees and the loan system have changed in just the last 15 years or so. I graduated 2 years ago, 28 more before they're wiped is an eternity in politics. A long time for things to go increasingly downhill if we allow it :(
I totally agree! I started uni the year they got trebled and I have over £65,000 owed to SF and it goes up by like 5K each year because the interest rate is so high. I did a masters and so it’s more than 15% of my wage. I don’t even cover my interest because it’s so high. There’s a really great video by TLDR that explains how all we do is pay interest now unless you earn over around £60,000.
Fun...meanwhile in NZ uni is becoming cheaper as time goes on - I only graduated a few years back and they've already introduced a scheme where the first year is free (for tuition) so people aren't financially ruined when they realise after a couple semesters that university isn't right for them.
@@juliancain3872 I prefer the way @Casual Pessimist (above) phrased it... If you read it carefully. And don't worry, I'm an ex pat US citizen who lives in the UK (since '87). The more videos I see like this, I'm starting to believe that the rest of the world is developed.. and the US is... n't. Gerrymandering, paid lobbying, filibustering, uncontested unilateral bipartisan vote passes in Congress 420-0.. Leader of The Senate: "Naaa.. uhh.. think we'll just skip this law." Of all the would-be amendments to the US Constitution, these three types of corrupt manipulation should be tagged on to the end of that sweet little piece of scroll.. Otherwise it's worth.. well... the piece of paper that it's written on. It's about time we sorted our country out, and stop being so insular and greedy. I'm glad I emigrated to ne honest. I'm still shit proud of my country, and my flag, I just don't like the people supposedly in charge.
You don’t have to go back that many years (20?) until you’re in the era when university was free in the UK, and students were entitled to apply to non-repayable grants.
my parents got their degrees for free TuT i have to repay mine, but as corey said- it cuts off after 30 years and its only 9% of extra earnings above £27000 yearly income so im glad its only that and not whatever hellish plan the US has
@@mentak2593 hold on I'm so confused right now. When I've finished my 3 year bachelor of nursing degree in Australia, it will be $10650 and I rounded the price up and I thought that was expensive but I guess not? 😂
@@beth22. Oh 10k? That's how much I owe now ten years later. Initially after I graduated I owed a little over $70,000 for a undergrad in the comp science field and could only land a help desk job. Private university😅.... im lucky i didn't go 100k over.
I have to say as a former SU officer who had to deal with student loans a lot - Corry explains the English system very very well. Note that although the Scottish system is free (for Scottish students), there are far fewer university places per head of population than England and Wales. If Scotland had become independent in 2016 (ie, before we had the EU referendum) then they would have had to introduce fees or they would have effectively bankrupted themselves with all the English, Welsh, and Northen Irish students who suddenly wouldn't have had to pay university fees in Scotland.
I have also explained in an earlier post some errors made between the distinct differences between Plan 1 and Plan 2. Plan 2 ie. current student loans are far more expensive, and have longer write off periods than the olde pre 2012 Plan 1 loans.
@@andyhartley You would'nt though as the income threshold is actually also an allowance much the same as a tax allowance so still 9% but 9% of more income on one plan than on the other. Its swings and roundabouts, plan 1 is cheaper with fairer right off terms but you are repaying on a bigger chunk of your income. Being on a crossover between both is fairly rare though. It will only ever affect two cohorts maximum.
@@izzienewport It's because I did two courses either side of 2012. The 2011 intake are on Plan 1 for their whole course. My point is that Plan 1 is only cheaper for those earning >£34k, basically because they pay off the balance of tuition and maintenance before the 25 year cutoff - that's not an exact science because of the exact amount borrowed, interest rates, etc, but as a rule of thumb it's about right.
Death - America vs UK I’ve recently discovered there’s so many differences with how we do things. funerals, debts, grieving it’s morbid but i wanna know
Never mind the US and the UK, the UK and Ireland/Northern Ireland is very different! In Ireland (including NI) from the person dies until the funeral, including burial or cremation it is a maximum of 2 nights (so the funeral is on the third day). It might get extended by a day if there is an immediate family member having to fly home from abroad, or if there needs to be an autopsy, etc. And for the two nights, the coffin is usually at the person's home where family and friends (including friends of your family, even if they never met your Grandfather for example). It blows my mind that in the UK, you have to process someone's death, maybe take a day or two off work, but then go back to work for 3-4 weeks (or more) and then take another day or two off for the funeral.
Is it true that Americans all stand around the coffin as its put in the ground, nobody crying, just staring, and that is basically the funeral? I've always wondered how accurate the movies are because this sounds so strange compared to funerals I've been to in Australia. For us, we go to a funeral parlour thing, coffin up the front. People do lots of speeches, might read poems etc. Everyone is crying, even old men who you never ever see cry. And after that, we all say bye and then go and get super drunk.
@@cocoacoolness US citizen here. The part you always see on TV is the burial ceremony, which usually happens after the funeral. The actual funeral, the coffin is at the front and people can go up and see it and then there is a service where people give speeches etc. It can depend on what each family wants to do, but sometimes the burial ceremony is reserved for family only. It’s basically just a final send off after the funeral service. It’s a closure thing, I think, to watch the coffin go in the ground. And then after that there may be a wake, which is the equivalent of you getting super drunk, except that for us it’s usually just a bunch of food and talking. Every funeral is different though, some do a service, burial, and wake or some other combo. The crying thing also depends on each family and their culture. For example, I’m white and most white funerals I attend, there’s some crying but nothing too dramatic. But I went to my black best friend’s aunt’s funeral and everyone was in tears, letting their emotions take over them. It was heartbreaking. So it really again just depends on each family. I have seen a lot of American tv shows that portray funerals the way you’ve described and that is weird to me too now that you bring it up.
I’m definitely grateful as a us high schooler that I can take college classes for free (it’s called a college credit plus program) and get many of my classes done in high school for free and get credit for both levels of eduction. I’m in Ohio but I’m not sure how it works elsewhere
When I was in school, a lady came to talk to us about student loans, and someone asked “so if you never earn more than £26,000 you don’t have to pay it back?” And she said “yes... but why are you going to university if you’re never going to earn more than £26k?” because she didn’t realise she was talking to a room full of Northern Irish millennials.
Tbf that's an issue all over england. Wages stagnated whilst living has gone up. When I left england last year my salary was the same that my mum made in 1988.
Pollie C tru dat! I just specify because the average salary in Northern Ireland is usually much lower than the rest of the UK. I assume it’s pretty much the same issue with regards to student loans everywhere though!
Someone who did an apprenticeship in informatics in Switzerland can earn 100k swiss francs (82'000£) per year (in sales it's around 50k swiss francs). There is no need to go to an university to get a high income here (only 20%of students do)
I'm moving from Sweden to the UK for uni this fall, and as an EU resident I specifically chose to only apply to Scottish unis to get that free tuition 👀
I scrolled but can’t see anyone answering “Why the 1st of September?” It’s because that’s when our school year starts. The first day back is usually the first Monday in the month of September. It’s also the cut off date for entry into a year e.g if twins were born on 31st of August and 1st of September the younger twin would be in the lower year.
Just an FYI, in the case of twins or even just kids close to the date you can appeal/choose. If you think your child isn't mature enough ready to start school even though they should, you can go through the process to have them enrolled the year after (if done correctly) and you can do the same for twins, to have them either in both one year or the next year, depending on their development/maturity. But technically you can just leave them and have them a start year apart (but from a developmental perspective that makes little sense - if one is ready, both are, excluding any medical issues, disabilities, etc), but most people with twins just get them put into separate classes as they get old to ensure they don't depend too much on each other and grow as individuals, etc.
Thank you so much for doing these videos! My boyfriend is an American currently studying in England and we had no idea about the tax system and about the tax bomb bullshit. He plans on staying here after his degree so all of your visa videos also really help!
As someone who lives in Tuscaloosa, everything you said is pretty accurate. In terms of "Who wants to go to Alabama," it's way cheaper to live here than it is to live in other states.
You missed the bit about welsh government bursaries. Scotland: Free England: Gov course + maintance loan (9%) & university bursaries (don't need to pay back) Wales: course loan + maintance loan (9%) + Maintance bursary (don’t need to pay back) & university bursaries (dont need to payback) *I'm from wales and my maintance is the same size as my English flat mates, plus I get 4k from government bursary and 1k from uni. I may not ever pay off my loan side of it, but its not something I really worry about as it will just go away. Might not be as lucky as the Scottish, but I feel quite secure and comfortable when at uni and don't really get worried by the money side of it.
I Was going to point this out too. I only payed 3k a year to study in England as I was Welsh. and also my maintence was like 80% grant rather than loan so my total owed is like nothing compared to my English friends. I Wasn't Aware They'd swapped back to full fees though?! That's awful....
I think it was around 2007 (ish - don't quote me on that) it went up to 9k? so I was too young at the time to understand any changes etc). I just try looking at the brighter side - I get a grant, chances are I will never pay my loan back and if this wasn't the case, I don't think I would be able to afford uni. (which I guess is kind of the point, I guess the system worked?) Would be an absolute dream to only need to pay £3k
yeah im welsh and because my parents don't earn much I only have to pay £1000 (a year) of my maintenance loan back (I get £8000 in grant from the government a year). Its such a better system than in england
So I'm moving to Edinburgh in two weeks to study at The University of Edinburgh and a lot of people automatically assume that I must be incredibly rich to study abroad. In reality, I'm paying the exact same tuition costs as in-state school, A THIRD of what my in-state costs for housing would be (and in state would stuff me in a bedroom the same size with 2 other people and take away my kitchen for that cost), only $300 for pretty much full coverage health care, and slightly higher travel costs twice a year. Overall, the highest costs I've had to pay are to the US government for visa-related things. I'm paying less than pretty much everyone I know.
people will be really shocked when you tell them this. especially scottish/eu students (myself included, also at uoe) can't comprehend the cost of education in the us. i had a classmate who said that he would pay the same about of money at home so why not do the whole degree abroad.
My fiancé is from the US. He moved to the Netherlands a year ago, but still hasn't found a job. If he can't get a job soon, he's moving back. I don't want to move to the US... 😭
@@edithnaab5098 the U.K. is just way to overcrowded, I couldn’t stand the cold wet weather. How do you visit the beach without actually swimming etc. There’d be no place to get could tacos or BBQ.
Evan is correct. This is called predatory loans in the US. This has recently been cracked down on, especially after the economy tanked in 2008. It's why I paid as I went so it took me a long while to get a 2-year degree as I paid or used company benefits for school (where you pay and if you get good grades, they reimburse you) because I didn't want to put myself or my family in debt. I do work for the state of FL now and they pay for my uni tuition but we can only enroll once other students have enrolled so our enrollment date is usually later than others so it's not much to choose from. Plus having a family and going back to school for a 4 year degree is very difficult. But hey, at least I don't have student loan debt. 🤷
Absolute favorite part of the video........"America really likes putting you in debt don't they. If you want to go to university, you've got to be in debt the rest of your life. If you want to get sick, you've got to be in debt the rest of your life."-Corry That is the most accurate and depressing statement I have heard about the US. I have a ton of student loan debt as well.
I start uni in a few weeks and I won't have to get any loans, because tuition is less then 500€ a semester. And even if I get a loan it will be 0% interest if I'm really in need of one. And still everyone says my government should put more money into education.
Oh my! The danish system would blow your mind. We get university for free apart from the fact that we have to pay for the books we use. On top of that, we get student benefits. Every student, no matter income gets this and its about 600 pounds a month. If we then need more money, we can apply for students loans that has an interest of 4% while we are studying but when we graduate and start paying it off it goes down to 1%. :)
Woah, 600 in benefits every month!? Lucky! In Norway we get a loan every month, and part of it gets turned into a stipend if you complete your courses/degree. Also, we don't get charged interest while we're still in uni, but interest starts rolling as soon as you graduate or stop receiving payments. You get a variable interest by default, and atm it's 1.4%
@@LinniC93 So if you don't finish your education you have to pay it all back? So you can't change your mind and then switch to something else without having to pay it back?
@@1010Lone If you don't complete the degree you only get 25% converted to a stipend instead of the full 40%. But this rule about having to complete the degree is brand new, so not sure about changing your mind. But I imagine that if you "drop out" and start anew on a different degree that you'll have to pay back those 15% you'd otherwise get. I guess it's supposed to encourage people to complete their education 🤷♀️
Yes, I’m in high school and my college counselor talking to me and said “Honestly, I haven’t even paid off mine and I won’t until I am 38, so let’s look at these scholarships.”
Wait till you hear the European system, particularly Germany. Don't know the details as a Brit. But the German tuition fees are dirt cheap, like much less than the UK 9k.
9:25 I think it’s those dates because that was when there was a change in tuition fees. The raised tuition fee in England and Wales from £3000 to £9250 came into effect in September 2012. Hope that helps!
Yeah I was finishing my Master just as the new tuition fees came in, so my fees were about 3.5k per year (3 years) for my BA, and then about 4-4.5k for my MA. I was so glad to miss the price hike.
Yep. It was cheaper for me to do a study abroad semester from Texas to Bradford, England and so I did it and met my hubby and now live over here in England!! Best decision ever!
Big point was missed in this about Northern Ireland students who study in unis in Northern Ireland only pay about £4000 per year but everyone else from the UK and EU pay £9250. NI students get a reduced rate due to the troubles and encourage young people to go to higher education. The reason the EU students don’t get it is due to NI students being charged £9250 but instantly getting money from the government to reduce it to £4000
That's probably still unlawful. At least it was when the UK was in the EU. Germany tried to introduce a road toll that only affected foreign vehicles. Everyone had to pay it, but Germans got it credited back by the government. The EU court ruled it unlawful.
There is also an advantage to being a "mature" student, if you're over 25, the only income they take into account for anything means tested, such as maintenance loans and grants, is you're own whilst you're studying and it doesn't include any income you'll get from any small part time jobs. So when I finally did my undergrad, I was able to put down a £0 household income, reduce my working hours to around 12hrs a week, which brought me in around £1000 a month and still get the full maintenance support from the government to make up for the lost earnings from reducing my hours which totalled about £4-6k over the course of the year (can't remember the exact figure, was a mixture of loan and grants). The maintenance loans get lumped in with the tuition loan so both will get wiped out for me 30 years from graduation, grants didn't require paying back. My university also did scholarships for students entering with over a certain amount (i think it was 250 or 300) UCAS points, which, at 420, I qualified, so I got about £1200 in my first year down to around £500 in my final year. I had to maintain a 2:1 average in each year to keep getting it in subsequent years though.
Same is true in the US - if you're married or over the age of 24, ward of the state at age of 18, or have served in the military, you are considered independent and only your income counts.
I really don't think it's fair that a mature student could get more support than a student barely entering adulthood but that's just the system I suppose.
April Summers the premise is that 18 year olds have family support. Obviously not always true, but in the US you can try to get independent student status if you aren’t in contact with them. At 25 I was independent and had lived 2000 miles from my parents for 8 years and got no money from them in that time. (Also being a 27 year old in college is HARD - can’t sleep deprive yourself in the same way)
@@anomalily yeah I get that. Being in school can be hard for anyone of any age. But I assume you don't need to be a mature student to apply for an independent student student. From what I'm gathering from darklord Devilish, in the UK, a mature student can get the max maintenance loan from student finance regardless whether their parents help out or not. Which if I'm being honest, I do question the fairness of that.
@@aprilsummers6447 In the US, you get independent student status automatically if you are over the age of 24, have left the military, have a kid, are married, or are ward of the court (no parents) when you turn 18. It's then only based on your income, not your parents. Otherwise you have to petition that you're no-contact with your parents. You can just wait until you are 24 and work if you don't get support from your parents, that's what I did. It's actually quite fair as long as folks that don't have parental assistance CAN petition to prove that they don't get help from their parents.
I think bursory or however you spell it is more comparable to Pell Grant than a scholarship, because Pell Grant comes from the government and doesn't require any essays, just a FAFSA form.
I second that. I carefully strategized paying for school. And Pell grants as well as other "free money" options are what I used to get 2 associates degrees.
Problem with pell grant, is that it is still FAFSA-based so if your FAFSA indicates that you should be able to pay... then pell is not going to do much
I've never had to take private loans for my education thankfully, but upon reading my federal student loan contract, if I die, my loans are immediately forgiven. I made sure that my parent would never have to pay for my student loans if something like my passing were to happen, as I come from a low income household
For my second attempt at uni, I had to be put through as an independent student because they wanted to assess me off my birth dad’s income even though I’ve never lived with him. The Student Loans Company refused to assess me off my parents income. Then I had the problem that they claimed I didn’t earn enough to be classed as independent so I had to prove that I paid rent and bills from that lower wage. It really sucked and we had to get an MP involved to get them to actually take another look as my case
While it’s technically the “English and Welsh system” I think Wales falls somewhere in between Scotland and England tbh. It’s not free, but we get it cheaper no matter where we study in the UK, while the Scottish system only applies if you study in Scotland. When I started uni in 2015, the Welsh gov was paying £5,500/£9000 of my tuition fee, so I only had to pay £3,500, which they updated to an equal £4,500 split for my second and third year; I only have to ‘pay back’ £12,500 for 3 years of uni tuition while all my English flatmates had tuition fees of £27k (iirc, Wales opted to keep tuition at £9k instead of adding the extra £250)! Wales also still has a proper maintenance system, which the English government is severely lacking in lol - Welsh students receive a mixture of loans, which are repayable, and grants, which aren’t. The maintenance cover currently totals around £9k a year for everyone who is living away from parents, regardless of family income, meaning that the means testing applies to allocation of loan/grant within that figure, not the sum total. I believe it’s somewhere around £12k a year if you’re studying in London though bc it’s hella spenny to live there! Plus, we have the Welsh government partial loan cancellation - you make a £50 (that’s what I did anyway) payment on your loans, and a nice (up to) £1,500 wipes from your loan. That’s before any uni specific financial help as well, which varies greatly depending on where you study.
Partial loan cancellation is interesting, I'd never heard of that! England got rid of our maintenance grants a few years ago which sucks - I think the amount you get is more or less the same as when we had grants, but the whole thing "has" to be paid back now!
I'm on my second year of uni in England and I think for 3 years overall my debt will be roughly £45000. I only have to pay back a small percentage over the threshold and I dont pay any back for 2 years after graduating anyway, i do believe. I've always been so grateful that I live in England and can get this kind of debt and not the American version. The idea of the tax bomb is insane. 😲
You’re lucky! I graduated in 2016 and got the minimum maintenance loan alongside my tuition fee and when I got my letter from SF through once I graduated, it said I owe £53k! I’ll probably never earn enough to start paying it back anyway, I want to be a funeral director and they don’t earn near the minimum earning to pay it back
@@Jess140594 That's what's so great about our loan system. You did a degree and ended up earning a good amount of money (currently above £26,575 - barely below the average income for UK adults)? Pay a fixed percentage towards your student fees! If you earn the average income, you pay around £30 per month! You did a degree, but your income is still relatively low? No worries, don't pay anything unless your salary goes up a good amount. Our universities are expensive on paper, but only needing to pay back what we can afford is brilliant
@@HomebaseLHR Ok, where are all of you getting this information.... because I can't find a source I work with councils a lot, Cuts to education caused by the conservative government are what causes schools do be shut down and understaffed in Scotland. England doesn't do magically pay for everything bud
The underlying part of the American system that was left out is by deciding where and what to go to school for you decide how big the loan is in the end. community college and in state tuition are very affordable and easy to repay. Problem is a lot of 18 year old's have champagne taste on a beer budget and the loan people will give you what ever you want at that age because you cannot get out of the loan. So essentially we let children dig how ever big of a financial hole they want, then enforce them paying it back at some point.
A clarification: in the USA, a PUBLIC loan (so from the government), if you die, the debt disappears. If you have a PRIVATE loan (not from the government), it sticks around until it's fully paid off. You're correct that if you file bankruptcy, it doesn't go away like other consumer debts.
I went to university in London, in the early to mid-90s. At that time tuition was free, and you got a grant from the government for living costs. The grants were in the process of being reduced at the time, and student loans were being introduced. Prior to the reductions, I believe that the grant was about £3k. With it being the 90s, that money went further than it does today.
I feel like the Scottish has changed a bit (I'm about to start uni): Tuition is free for anyone who has lived in Scotland for at least three years and you're not only there for that. Is paid by government. Maintanance is just around 5.5 grand, this has to be paid back. Maintanance bursary is means assessed and can go up to 2 grand. University bursary/scholarship depends on uni, is usually means assessed and doesn't have to be paid back. Eg. Edinburgh give you up to 3 grand per year of study. Sorry, if no one's interested, just thought I'd clarify it.
Yeah I just graduated in Scotland and we didn't really have the uni bursary/grant thing and the couple that we did have were super specific. So it was pretty much just SAAS.
Just wanted to add - I'm from Wales and going to uni in England and I found out there's a Welsh Learning Grant scheme which means up to £8100 of your maintenance grant is given as a bursary from the Welsh government. The rest you get as a normal student loan but I think this is great 😁
"If you're really poor, good" No this literally is the case, I get maximum maintenance loan and bursary because my household income is so low. Perks of being broke!! It's lit It's hardest for people not poor enough to get a big loan but not rich enough that their parents can cover them. So most of my friends had parents paying their rent completely and used maintenance loan for everything else, but tons of people's parents can't afford to help them, but since they're on slightly higher incomes than me aren't able to support themselves with just the loan/bursary if they get one. Other problem with the household income thing is how households are decided. Saw on TV that a girl's mum had her partner move in, suddenly his income counted and she wouldn't get enough loan to live for the rest of her course. Even though he wasn't her dad and hadn't even met her until she'd gone to uni, it was assumed he would be helping out. In fact I don't think he'd lived their in the tax year that was being assessed, but his income was still taken into account. It's also not explained very clearly that parents are expected to make up the difference (i.e. top up their kid's loan to the maximum out of their own pocket) and it's kinda ridiculous to assume they can - not sure other children, whether at uni or in school, come into the equation. This might be the longest yt comment I've ever written, I just have a weird obsession with knowing everything about SFE!!
It also doesn't take into account if it's one person or two with that income. So if you have one parent earning a certain amount, then you can lose more to tax than if it were split between two people, but that isn't taken into account. So you'd be better off with 2 parents earning 20k than one earning 40k.
In Belgium, almost nobody takes out a loan. Most people with a low income houshold get a bursary from the government and university is pretty cheap. Tuition is now around 980 euros a year. You will only need your books and maybe some tools/materials for some courses. Most students can earn enough with studentjobs/studentwork in the weekends or/and in the vacationperiods. If you want to take out a loan, you have to go to a private firm (mostly banks). Only people that live in Brussels or in Wallonia can get a loan from the government, not the people from Flanders.
yes, also in Italy it's pretty similar, even people with pretty low incomes can go to university, the most high cost universities are private and cost about 9000 €
Edit: This was correct when I started Uni in 2016 but the policy has changed now, however it is still different to the English system since Education is a devolved power. ✌🏻 It’s different in Wales, if you’re Welsh and you study anywhere in the UK tuition is £3,300 a year and we also get a means tested grant on top of our loan. We have a Labour government who subsidise 2/3rds of our tuition fees. 🏴🏴🏴
That's not true, though it might have been a few years ago. I'm from Cardiff, starting uni in England this year and my tuition fees are £9,250/year. I do get a hefty Welsh Government grant though for maintenance (the maintenance allowance is split into loan and grant, always £9810/year - more for studying in London - and how much as a grant is means-tested).
Emmet Moore You’re right! Sorry my bad I just checked and it changed in the last few years. There’s more emphasis now on maintenance grants rather than tuition fee subsidies. Good Luck at uni this year!
I haven't started paying back my loans yet after leaving uni in 2017. I owe over £50,000 at this point. Its £9000 a year of tuition plus about £5000 a year in maintenance loans and then interest. Last year I bought a house and can't imagine my student debt counting against me there. I will never pay off my student loans in all likelihood
@@aprilsummers6447 I lost a number of grandparents in the last few years and with inheritance from that I was able to have a significant deposit. So I guess I was luckily unlucky.
You are right Evan about it hitting the working middle class the most. My parents earn enough that I don’t get the full loan however they don’t make enough to support me. I have to pay an extra grand of money for my accommodation (I got left the money by my grandma) yet one of my friends got a full loan and her dad paid for her accommodation. It annoys me because I see people who don’t need a job at uni and can go out all the time yet I have to work to be able to afford food. I understand the reason behind it but it doesn’t always benefit everyone
The scholarship thing was the same with me!!! My dad left and started a new family. His child support was 150 a month and he stopped the minute we turned 18. I had to include his income in my FAFSA. It counted against me big time. Ugh. And of course he was not going to help . He didn’t give one crap about us .
I’m Scottish going to uni this year, my tuition fee is £1,800 paid by the government (don’t pay back). I get a 2K bursary(again don’t pay back) and 5k student loan.
Clueless Becks The only reason it's so much cheaper in Scotland is because English taxpayers subsidise Scotland. We spend more per person on the Scottish than we do on our own citizens. Hundreds of millions of pounds every year. That's why Scottish independence is such a joke- they would be screwed if that money suddenly dried up. The sooner it happens the better.
You accrue interest from the day you start your course but you're correct. Repayments on Plan 1 start at around £16k (I'm plan 2 so I don't know the exact figure) Repayments on Plan 2 start at £25k
Honestly i have to say i really like the uk student loans method. Like yeah, it isnt perfect and still has its flaws (like basing the child’s loan on your parents income instead of just standardising it??) but i saw a video on twitter where an american lady was weeping at her computer because she’d paid 100 grand of a 70 grand loan and STILL had more interest to pay off :(
Yh it's a bit wack but at the same time i kinda get it. Some parents can afford to help their kids, some can't. Its the idea that if you are able u should continue to support them. The problem is some don't lol. Maybe it should still be means tested but the difference should be smaller. The thing is people don't pay it back so the government can only afford to give lots of money to those who absolutely need it. So it's a bit of a hard one
@@janani1826 yeah agreed. I used to think that, but me and my brother were in the highest bracket (so we got the least amount of money) but my brother bought a car which my parents loaned him £1k for. And I just bought a laptop which again, £1k loan from my parents. My parents would never straight up give me money or pay for anything, but a lower income family probably couldn't afford to just loan a grand for funsies
The loan isn’t based on parents income, just a bursary. So every student in the UK gets the same tuition and maintenance loan. However if you are from a low income family then you might get a) an extra bursary ranging from a few hundred to thousand pounds from the university or b) get a reduced maintenance loan plus a maintenance bursary to make up the difference. I got a maintenance bursary so I have less loan to pay off than my friends who only got the loan. But the university bursary I got was only a few hundred and helped pay for a laptop for uni that my parents couldn’t afford. My friend’s parents had more disposable income to support them with things like laptops. So it works out generally
@@simpleyak no the maintenance loan is means based (at least definitely in England) ... The tuition loan is always what the tuition fee is but maintainance is means tested legit just go on the gov student finance calc and u will see
@@janani1826 the maintenance loan is means tested but everyone gets a certain amount (just over £3k I think??) and then there's a maintenance grant added on which gets to about the same amount as the loan if you're on the highest amount
Evan there’s such a thing as the federal Pell Grant (max $5200) and in Virginia a state grant (~$8000) offered to very low income students. It’s offered every year and it’s based on the FAFSA. You don’t have to pay either of these back. In addition, your university can offer grants based on available donor funds. So its possible to go to school for free if your family has been consistently low income. Also an important point you missed is that in state tuition is cheaper because theoretically your family has paid taxes to the state for years and the state gives in-state university tax money so that’s why it’s subsidized for in state students.
I’m welsh. I just finished my undergraduate and no matter where I studied in the UK I only paid just over a 1/3 of tuition. Plus the Welsh government still gives grants and well as loans.
I went to community college my first 2 years And I had so many scholarships for it, I actually got PAID to go there for 2 years but 3 more years + INTEREST is... a lot
Smart. Sometimes if your parents don't make a certain amount, federal aid can completely pay for community college. And Fed Loan has interest rates at zero right now/every loan is technically in forebareance until the end of the year.
My boyfriend owes $80,000 but didn’t graduate and i owe no money and graduate this year! He wants to get married though and I’m like..... “but that loan debt...”🤣🤣🤣
So many people breakup over money issues, so talk about it now and what the plan is to pay it off. Don't wait to have that convo after you guys are married and you now realize your credit score is shot and you guys can't buy a house.
Make a prenup just in case you separate or death. It's his debt, not yours. You two should be open about all assets and debts each bring into the marriage to assess the financial ground before Then you two work out a plan to gradually pay all debt and live. You both need to be discipline about budgeting and manage earnings and you should be OK.
This is so depressing to hear. I didn't pay anything for University, neither for my BA, nor for my MA, everything was paid for by the government, as I had good grades and good national Bacalaureat results when I applied. I also got a lodging reduction and a bursary from my University because I had obtained good exam results (the bursary was enough to pay for my housing and bills, plus a little left over).
The fact that it is after September 1998 reflects when tuition fees were brought into England. Before that, English students didn’t pay fees. The 2012 date reflects when the tuition jumped up from about £2k per year to £9k per year. The interest and threshold also changes depending on the plan. The interest for Plan 1 is 1.1% and you pay back 9% of anything over about £19k. The interest for Plan 2 is 5.6% and while you study and then changes every year. You pay back 9% of anything over about £26k. It then gets trickier if you have a Postgrad loan too (and PhD loans are paid back similarly, though I think tu get them through the uni rather than the government). Interest on Postgrad loans is 5.6% and you pay back 6% of anything over £21k. So in my family: My husband: went to uni before 1998, nothing to pay back. My sisters: went to uni before 2012, roughly about £15k to pay back on Plan 1. Me: went to uni after 2012 and did a masters: roughly £45k to pay back on Plan 2 and £11k to pay back as a Masters Loan. Corry is right that most people don’t have to think about t because it comes out just like a tax. However, if you are self-employed, like I am, you are responsible for making sure you have enough money to pay back after your tax return has been filed, just like your taxes. So I have a very complicated spreadsheet to make sure I know exactly what I have to pay back haha.
This makes me really grateful to be in the Australian system. We are very similar to the UK, our degrees cost more though not sure if they do when you do the conversions. There is a tiered system for the cost so degrees like nursing and teaching and cheap but courses like architecture and doctors cost the most. I did teaching and I would pay in one semester for 4 courses what my sister would pay for one course out of 4! But we have a HECS system that when you get a job on the tax form you elect whether you have a loan and you have more tax taken out of your wage to allow for the fact you have to pay it back. Each year when you earn over 42,000 you have to pay back at 1% of your income and the more you earn the more you have to pay back. You have the debt until you die/pay it off but it is your debt alone so your dependents aren't slugged with it. It is fairly common for a lot of people to never pay it off as you have to earn enough to pay it off but it's just dealt with as part of your yearly tax so not a big deal. Though there are some rules they've put in place about living overseas as you do still have to pay it back in those circumstances.
I'm an American, perm settled in Edinburgh, with those lovely, lovely US Fed loans. I did not know about this IRS Tax bomb, so thanks for the heads up. Ah, America, you evil, greedy thing.
Every time I tell how the American loan system works to my UK coursemates they look at me like I'm telling a wild lie. They then go "well youre studying in the UK though....why aren't you getting UK loans??"....like...I wish 😭
My mind is blown! I knew the system in American was harsh, but this was very illuminating. In these cases, if it is widely known how you'd be saddled if you did choose to go out of state for university, why do people still do it? It sounds like a perpetual struggle
There is also a lot of predatory counciling when it comes to education. They will make you feel like its your only option You have to make these choices at 17 years old, you only get one shot unless your family has money, and most people have no concept of this kind of loan amount at that age. 🤷♂️
Hi! Current student in England and Wales here! So, the interest rates for plan 2 are based on the RPI (Retail Price Index) + 3%. The RPI this year is 2.4% so this year, the interest rate is 5.4%. Last year, the RPI was 3.9% so it was 6.9%. Oh, and you mentioned bursaries but I can't remember if you mentioned maintenance loans which everybody in the UK can apply for and are means tested so you can get between £4,000ish and £9,000ish depending on your household income. (The one slight problem with that is the interest rate on that is fixed at RPI + 3% whether you get the maximum, minimum or anywhere in between so the poorer you are, the more in dept you get. I contacted the Universities Minister last year and their response was "it is only fair that those who benefit most should repay their fair share". That's the Tories for you.)
@@bufftailedbumbledragon450 yeah my maintenance loan was going to be £6k I think and then they replaced £1500 of the loan with grant so I didnt have to pay that £1500 back. So it was £4500 loan and then the £1500 was part of a £5k grant so I had a lot of maintenance money £8000-£9500 (it varied in my 3 years) and i didnt realise my english peers didnt get as much
As a person who studied in a private university in Venezuela, dropped out, and then moved to Argentina I can say that logistically a public university here is terrible in comparison but im so grateful for the rest because its great and FREE. I wouldn't be able to study otherwise
Evan is right, the interest is dependent on the state of the economy. The bank of England has base rates that will change (say cos of covid) and that affects the interest rates
Janani yea, our prime interest rate in the US has been really low since the last recession. Great for borrowing money, less good for savings. That’s one reason so many people are investing in the markets right now, prime has been so low for years.
That was the most perfect TLDR statement on US student loans ever. Sums up the whole entrapment system nicely: "In the US.. you do sign up for this dream of 'you'll make a lot more money and you can have a new life in the new land of having a college degree', and there's no actual way of possibly paying it back for most 90% of people. So therefore, you're kind of working endlessly to pay back this interest growing loan that will never go away". You literally become a cash flow for the company.
To do clear, federal student loans do NOT have to be paid back if the student dies. Private loans DO have to be paid back though, as they are just like any other loan from a bank
When youve paid 120,000$ over 10 years on a 80k loan and still you owe 76k then youve screwed up as a nation
Wow
I saw that tiktok so sad
Nah nah this makes a lot of sense, 124,000$ = 4,000$ obviously
Liam Miles-Margetts the 120,000$ is in interest not directly taking the total amount borrowed down
Fun fact, you don’t have to sign up for student loans
“You pay more out of state. You’re a country. States should be friends.😂” - Corey. I love this 😂😂
Scotland vs England/Wales (don't know about NI) we have the same issue here.
Lol, it is because there are state taxes paid to those schools by state residents so state students can go cheaper.
If only, man...if only
The western US states do have an agreement! So WA, OR, NV, ID, and CA are in-state for all three at public universities.
@@anomalily Out of staters are limited. Isn't AZ counted too?
Oh Evan looks so wounded when he thinks about how evil America is. Someone get this lad a hug and a cup of tea!!
I rate this suggestion 5/5 crumpets
10/10 scone(s)
Wait scone or scone?!?!
Also banana bread. I am about to make banana bread.
@@TinOfBeans Scone as in throne. Or scone as in gone. I can't actually work out which I say more.
@@TinOfBeans No. Its scone.
I'm glad you made that point. "Student loans" in the UK are not loans at all, they're essentially a graduate tax with a notional value. The more you earn after graduation the more you pay, otherwise you don't pay anything. What loan behaves like that?
it has to otherwise their economy would not do so well. like look at the US. 30 somethings putting off having kids (smaller future workforce), putting off buying a house (student loans hold them back significantly) reluctant to invest in businesses, start a business and invest in the stock market.. Oooo yea they're not really saving up for a retirement because they can't. In the US people will likely be paying off their student loans long after the retirement age.
True, but most tax does not stop. Student loans you will reach the limit of if you earn enough and then you don't pay anymore.
Also factor in that Welsh Students dont pay student fees if they go to a welsh university
@@grumpyratt2163 Welsh student do pay tuition. It’s Scotland that don’t . Welsh students can get a grant that covers their tuition if they choose to study in the Welsh language.
@@mroosie7488 Excuse me but I work at the University of Cardiff. And welsh students don't pay tuition fees .
"The states are a country! They should be friends"
That was the most adorable statement to make when talking about a country where all the states get to make up their own laws and most of them would rather separate from each other entirely
Most things are like:
Europe - we've got a sensible system where people get stuff for free and pay through taxes
UK - we have a stupid system but at least we've tried to make it fair so that people don't needlessly suffer
US - MONEY MONEY MONEY MONEY GIMME ALL YA DOLLA DOLLA BILLS YO
Average tax rate in the US: 14%
Average tax rate in the UK: 23.3%
In the mere 9.3% increase you get free healthcare, tuition loans you are not forced to pay back in full and many other benefits...
US people: IT'S MY MONEY!!! Why would I give MY money to someone else.
Meanwhile a random US citizen: Get caught in the crossfire in one of the many shootings.
US: Give a tenth of your income for health insurance and still have to pay a shit ton just to care for a gunshot wound or straight up give away months worth of salary if you don't have insurance.
But hey... I guess you save those 9.3% in tax xD
@@mairisberzins8677 Not to forget that Americans pay tax on ALL their earnings. British taxpayers don't get taxed on the first £10,000 (ish) they earn. Also Americans have to do their own taxes.
U.K. is in Europe
@@mercy871 and what difference does it make?
@@mercy871 The UK is considered distinct from Europe in many respects, namely the fact that it's not part of continental Europe, it was a much lesser integrated member of the EU and has now left, and is culturally much closer to other English speaking countries rather than European ones. Also when people talk about Europe they rarely mean to include the UK, especially if they're from the UK themselves. Just because the UK is considered a European country by proxy doesn't mean it's incorrect to talk about them as being two separate entities.
Suggestion: British 🇬🇧 vs American 🇺🇸 history (learnt in school not in horrible histories because that is what we all truly learnt it from in Britain)
Horrible Histories.
Thats it
@@rebekahl840 innit
Yeah, that'd be great
@@tammybabes3753 My (senior school) teacher was a bit older so we got black adder and the boy in the striped pyjamas.
RIP Shmuel.
@@tammybabes3753 ya
The whole Scottish uni is free to everyone but England, Wales and NI makes me laugh because anyone I know who studied in Scotland from NI just got an Irish passport so their tuition was free 😂😂
Really? I was told that it was all based on residency and not just citzenships. In my case I'm a dual citizen (Canada & the UK) but was told I would have to live in Scotland 3 years to get any free tuition.
@@BBC600 Same here. I'm Scottish but currently live in England so I had to live there for 2/3 years before being eligible for free tuition.
They’re saying that people got Irish passports so they payed the EU price, which is the same as the Scottish price so free
That’s doesn’t work anymore. So many people took advantage of the loop hole you had to prove residency. When I applied to start uni in 2015, I’d have paid £9000 to go to a Scottish uni.
I thought you had to live In Scotland for at least 6 months to get free tuition.
Can we talk about the fact that the debt doesn't get wiped if you die??
It does. It’s just that if you co-signed with someone else, they’ll come after them when you die. Most student loans are wiped out when you die but only if you didn’t co-signed with anyone.
@@ketianaosias6424 what about through marriage?
@@rachaelevans8351 what do you mean? If the student loan goes away through marriage?
@@rachaelevans8351 as long as your loans are from before you got married and your partner is not named on your loans they are not responsible for it, and if they take it out of your tax return your partner can file something so it wont affect their part of the tax return.
@@ketianaosias6424 It's like dieing!😕😉😈😊😇
So knowing how bad student loans get over here in the US I decided very early on that I would not taking out any student loans for my college degree... I have been in college since January of 2014 and will finally graduate this December because of how I had to take classes in order to afford everything. My advisers contently yelled at me about how I was not going to graduate "on time" and how the decision I was making was not a very smart one because of how slow I was going through school and now I just want to send them this video and say "well this is why I did it". I will now be graduating debt free and could not be more excited about it.
I did something similar, it took me 8 years to get a bachelor's degree (a 4 year degree) because I never took student loans and worked while in school, interned over summers and took a year off to work every other year. I don't regret any of it. I graduated later but with lots of experience and now don't have debt. the idea you have to graduate "on time" is a huge scam
Congrats, honestly that sounds amazing. Obviously as Brit I can only imagine that struggle but you managed it really well.
@Thomas 700 Jesus in UK its 350 for BA degree. You American need to change the system.
Well done
You were able to pay your way through collage- via work? that's awesome!!!! love tat you managed to stick those financial advisors in their place
oh my gosh, this is so sad and upsetting. I'm from Austria and I went to university (5 years) for free. Let that sink in. Only if you attend a special university for applied sciences or in general you exceed the minimum period of study by 2 or more semesters, you have to pay 363, 36€ per semester. I am so grateful, that this is the system in place here and we're not crippled by student loans for the rest of our lives. I feel for all of you, let me give you a virtual hug.
UK students are not crippled by loans, whatever they feel about it. In practice, it has very little impact. (Source of my information on this: I am a University lecturer and the Admissions tutor for my academic school, so I have to know this stuff. Also, my daughter is a student so we had to fill in the student finance applications for her).
@@timothyjames6412 Exactly - the UK's system is one of the fairest going. I think it strikes the right balance between letting poorer students go to university without being financially crippled, while also not taking (too much) money in taxes from people who never went.
@@timothyjames6412 How does being indebted for a few ten thousand pounds NOT impact a person just starting out? Of course it does. They might not be crippled, but they DO spend the first years of their professional lives working to repay their debt.
You should not have to go into debt just to get an education imo. I could study in a system with cheap education and didn't have debt after my studies. And I can guarantee you it allowed me to be much more relaxed about what job i took and which i didn't, and could even afford not to work every now and then while figuring out what i actually wanted to do.
I now am a super motivated teacher. And i came to the realisation I wanted to become a teacher during those first professional years, and even could go back to evening shool to get my teacher diploma, again at barely any cost. If i had had a debt of 20000 euro or more, and HAD to have worked to repay that, i probably never would have become a teacher.
So you can be sure that student debt impacts young people in ways you probably never even considered. To be free from debt gives you financial freedom, and thus also freedom in your life and life choices.
@@johanwittens7712 But, in the UK which is where Timothy was talking about, if you went to uni and had £60k debt and then earned a small amount of money (25k/yr) you wouldn't pay anything back!
You could go back to uni and study again and pay nothing back for a few more years
Then you can take another year out after uni and pay nothing back.
Then once you find a well paying job, IF you earn more than £27k you pay 9% of what you earn over that amount. So you pay back money, but only if you can afford it.
It feels like a fair way to mainly tax only the people who use the service and who can afford it.
The cost of education comes from somewhere surely. Either everyone is taxed to pay for the people that use it, or the people that use it are given a small, fair extra tax.
'Free' education is surely just lumping the cost into everybody's tax so you are still paying for it, but so is your mate who didn't study and only just earns enough to get taxed.
Edit: in the UK it is definitely more like a tax for 30yrs after you graduate (but you stop paying if you pay off what your borrowed) rather than a loan or debt.
America and the greed.
I’m paying a hefty £3 a month towards my student loan now... the panic I had about student loans after doing 4 years in uni to end up paying £3 is great
Wow! How do you afford that?
Doesn't it depend on your income bracket how much you pay?
@@mikeharvey2129 from my understanding, if you make less than 25k you don't pay anything. Then you pay a small % on money which is over 25k
I wish you good luck in saving this Half pint for the sake of debt recovering each month
that’s a whole ONE LESS MEAL DEAL MONTH! 😱
I love that Evan literally built a whole TH-cam channel around how shitty America is.
Don't think he meant it, but I am an American living abroad, and a lot of the reason the American government is able to get away with being this cruddy to their own people is because Americans don't travel and don't realise the rest of the world is getting a MUCH better deal. Once we DO see it, we kinda want to RANT.
@@charlotteinnocent8752 Oh my gosh I do not remember writing this lol! But yeah, that makes a lot of sense
@@cam6963 I only got around to seeing it today, but I have been guilty of many such a rant!
i dont think he meant it to be that way but yeah ur right
I've met many Americans who have come to the UK to study, live, or vacation, and they've said that the UK is better than the US, and the same when they explored other European countries.
The great thing about the UK system is it levels the playing field after people graduate. If you do well from your degree and get a great career that pays well you pay back your student loans for the privilege. If the jobs market is crap when you leave and you don't end up benefiting from your degree you don't pay it back (or at least not to the same extent). Also, I really like that (as far as I am aware) having UK student loan debt does not count against you when applying for a mortgage etc.
Yeah same with Australia, although I've heard of you only have a little bit of your loan owing whne you apply for a mortgage, it's good to just pay it off because it technically increases your after tax income slightly
Can confirm when we went for our mortgage they asked about debt, my wife said about her student loan and they were like “no that’s not real debt we don’t care”.
It does depend on the bank, student loan isn’t on your credit file but they often will ask for your current outstanding balance and will see your repayment amount from your payslips, so they will factor it into affordability criteria.
The UK and Europe doesn’t have credit scores like the US has. It’s ridiculous and it makes no sense
That's nice. In my country, students that got 4.0 GPA would get 100% discount or less, depends on family income. CGPA above 3.5 students also would get a discount. Students that gets below 2.0 GPA have to pay the semester tuition out of pocket. That mean perfect score students don't have to pay their debt. Also depends on your family income, you're only eligible for loan that's less than your tuition fee.
I see the uk student loan system as a graduates tax, and the amount you pay back depends basically on how well your degree served you, if your degree got you an amazing and well-paid job then you’ll pay it all off, if you spend your whole life on low income then your degree didn’t work as well so you don’t need to pay as much for it.
I would have loved it if a German student was with them in this video, just staring shocked at them and not saying a single word the entire video.
Why?
@@corastone9820 I'm guessing uni is free in Germany, as it is in many other European countries :)
@@onelasttenderplace More or less yes. You pay like 700€ a year. And that includes public transport
@@kanal05felix05 omg that's still a lot, we only pay 30€ in Slovenia 😭
@@kanal05felix05 and if you need a loan you can get one for 0% interest.
But only if your family isn't able to fully support you.
“If I did renounce US citizenship it would be for political reasons...”
So November could be interesting for you... 🥴😅
I’m not a trump lover but the democrats are like a child having a tantrum
@@judgejudyslover Trump has already won. Not a fan of his, but he's won.
Chanel Fitzgerald I hope so
If Biden wins, many of us will leave!
Someone remind Canada to close their borders in advance
As a danish student, I find it absurd that you have to pay for your education. Students in Denmark get paid around £900 a month by the government to study!
This used to be the case in the UK (I was a student in the 80s and got a subsistence grant). The intention of changing to loans was to reduce the burden on the taxpayer, but it didn't work - the state still pays upfront, and recovers very little.
This is true in a number of countries and tbh free uni was an option for me but it was just easier to go to uni in Australia (I was living in the UK at the time I decided) and I prefer the university system in Australia over the European/UK model. I also got paid to attend university (and technically got more money than I have in loans, but obviously I used it for living expenses over the years I was studying). Whilst 'free' (or super low cost) uni would be nice I can understand the arguments against it and I don't mind the UK/Australian system where it does function like a tax for people that actually went to uni. The Australian system is getting worse and more expensive, with less support (although there is still some support that is far more accessible than the non-Scottish UK and it's still half the price) so I guess I'd say I prefer the 2010 model. If I go to uni again I'll probably go for free in Scotland but I would feel perfectly comfortable studying in Australia again, I don't feel that cost is prohibitive to anyone wanting to studying at a higher level in Australia. Living costs if you don't have a job might be prohibitive as the government support for students is below the poverty line.
i am now hella jelly now
Thanks man for bringing so much detailed information about education! I realized that it was a proper decision not to relocate to the US but to stay in Europe where I don't have to pay for my children's education. Otherwise I'd go bankrupt sooner than I say "I am so proud you joined this school"
you only pay for students grades k to 12, if your children go to private school, public school is paid for by the state you live in
In Sweden tuition is free for university and my student loan right has an interest rate of 0.16 % so it+s pretty sweet!
0.05% in 2021!
Gotta go to Uni in Sweden
Hello and welcome back to a American who is always in debt because America
*starts uni in two weeks*
*sees title get scared*
*remembers Im Scottish and everything’s okay*
You’re so cute. When you graduate and are paying higher tax than the English, you’ll feel stupid for posting this.
@@mcbusted1985 thanks for calling me cute then :))
@@mcbusted1985 Im sure he’ll feel super stupid. I can see it already, TamPTV waking up at 3:00 am, sweating and panting, he whispers “God these Scottish taxes, I feel so stupid for not being English and commenting that on TH-cam 5 years ago”
“Well at least Im cute”
@@mcbusted1985 oh no, I pay roughly £10 a month more in taxes than the English and got a completely free education which enabled me to get this job in the first place...how awful...
As an Italian who wants to study in Scotland, I loathe Brexit so much
I'm American, and I had the WORST luck when I was a teenager thinking about college. I was a B honor roll student, so not horrible, but not wonderful either. HOWEVER, just after I turned 18, I had my identity stolen, which tanked my credit score, immediately removing the remotest possibility that I could get a student loan. In the same period, President Bush removed the Social Security student grants, which I had been counting on because both my parents were already seniors at the time. Furthermore, I was not eligible for any grants or scholarships, because I had never been involved in extracurricular activities, mostly because I was a poorer student who lived on a farm, and I couldn't afford to drive back and forth to school out of busing hours. Essentially, I had all my avenues blocked, so now I am 32 and living off what I can get through agriculture while I try to get books published. Such fun. At the same time, with the passage of years, I am glad that I don't have a massive student debt to handle.
Robert Gronewold this sounds awful! It is a major shame that you were not able to get into school for this reason. My parents did not earn an income as my mum was disabled, had it not been from the sheer fact that I’m English and was able to get a loan through SFE I would not have made it. I think American systems have a lot to answer for in regards to this. However, I wish you luck on publishing. And at least you don’t have the debt! Always a silver lining.
I'm studying with the Open University here in the UK, in my 30s. It's a very well respected distance learning university here. They have existed for over 50 years and do a lot of collaborations with the BBC. I am not sure how the loan system would work, but they are accredited in the US as well as the UK and in our student groups I noticed some people studying from the US and enjoying it!
In the US, federal financial aid (via the FAFSA) is based on household income, NEVER on extracurricular activities or credit rating. Federal student loans are "guaranteed" which means a student's credit rating never enters the picture. Financial aid professional since 1993 speaking here.
@@fredflintstone6143 And I never even heard of any of that stuff until like two years ago, when I was 30. It's ridiculous how they never mention such things. Too late now.
@@robertgronewold3326 damn that sucks bro how about going into Trade school? No one in their right mind says less plumbers, electricians, etc
For me though everyone always forgets the Trade schools. So might as well go into Trade school.
I got my master's degree in Newcastle Upon Tyne, the whole thing: visa, tuition, flights, room and board, misc fees cost 1/3 what it would to study in my home state of California . Not to mention it was one intensive year in the UK vs 2 years in the US.
"That's disgusting!" "OH MY GOSH! That's awful!"
Yes, it is Corey; I love your reaction to this.
Was waiting to see if they brought up the tik tok of the lady almost in tears over the fact that she took out an $80k loan and has paid over $100k over the past 10 years but her balance is still something like $78k.
That flat out robbery oh my god
Link?
why do I feel suffocated just thinking about this?
please provide a link!!
Sad part about that video is that she exaggerated the paid vs owe situation...she posted a video and showed she’s paid ~83k towards principle and ~36k towards interest (so ~120k total). She still owes 76k or so but the loan wasn’t 80k, it was around 159k and she’s halfway through paying.
Fucked up but in a slightly different way
The thing that's not mentioned with regard to the UK loans is that they've only been introduced recently, and during the time they've existed they've already been trebled, and now higher interest rates are coming in.. The way things have gone very much suggests we're on our way down a path towards a US style system, so while the system currently is relatively less horrific, we should still definitely be concerned
Fees have increased 9 fold, they were ~£1000 early on.
Edit: Just realised you said loans, I guess with maintenance they have roughly trebled sorry.
@@Teppishc I was thinking of the loan system yeah, but that's a good point about the fees themselves.
For me the main concern is we'll start getting private companies buying up the debt like in the US, and then you'd have potentially multiple companies with their own repayment policies chasing you for the money.
Terrifying to think of really, especially with how much the fees and the loan system have changed in just the last 15 years or so. I graduated 2 years ago, 28 more before they're wiped is an eternity in politics. A long time for things to go increasingly downhill if we allow it :(
I totally agree! I started uni the year they got trebled and I have over £65,000 owed to SF and it goes up by like 5K each year because the interest rate is so high. I did a masters and so it’s more than 15% of my wage. I don’t even cover my interest because it’s so high.
There’s a really great video by TLDR that explains how all we do is pay interest now unless you earn over around £60,000.
Yeah was gonna say my interest rate is 6.5% !!! Not 1.1 anymore
Fun...meanwhile in NZ uni is becoming cheaper as time goes on - I only graduated a few years back and they've already introduced a scheme where the first year is free (for tuition) so people aren't financially ruined when they realise after a couple semesters that university isn't right for them.
Alternative title: look how terrible the US is compared to the rest of the developed world
I mean that's almost every honest comparison video
Pretty much, the healthcare is the most shocking.
dont you mean, "look how terrible the US is compared to the developed world"?
How greedy and expensive the US is compared to the rest of the developed world.
@@juliancain3872 I prefer the way @Casual Pessimist (above) phrased it... If you read it carefully.
And don't worry, I'm an ex pat US citizen who lives in the UK (since '87). The more videos I see like this, I'm starting to believe that the rest of the world is developed.. and the US is... n't.
Gerrymandering, paid lobbying, filibustering, uncontested unilateral bipartisan vote passes in Congress 420-0..
Leader of The Senate: "Naaa.. uhh.. think we'll just skip this law."
Of all the would-be amendments to the US Constitution, these three types of corrupt manipulation should be tagged on to the end of that sweet little piece of scroll..
Otherwise it's worth.. well... the piece of paper that it's written on.
It's about time we sorted our country out, and stop being so insular and greedy. I'm glad I emigrated to ne honest. I'm still shit proud of my country, and my flag, I just don't like the people supposedly in charge.
You don’t have to go back that many years (20?) until you’re in the era when university was free in the UK, and students were entitled to apply to non-repayable grants.
my parents got their degrees for free TuT i have to repay mine, but as corey said- it cuts off after 30 years and its only 9% of extra earnings above £27000 yearly income so im glad its only that and not whatever hellish plan the US has
OMG, Evan fighting tears over the interest rate of 1.1 😢 The whole student loan thing in the US blows my German mind 🥺
In the uk, if you’re studying to be a nurse then you get a bonus £5000 per year for free from the government
And here I am in the US, a Nurse Practitioner (masters degree) and owe close to $200k. Ahh, lovely isn’t it?
Which they should save to pay their bills later on in life due to the outrageously low salary they get 😡
@@mentak2593 hold on I'm so confused right now. When I've finished my 3 year bachelor of nursing degree in Australia, it will be $10650 and I rounded the price up and I thought that was expensive but I guess not? 😂
@@beth22. Oh 10k? That's how much I owe now ten years later. Initially after I graduated I owed a little over $70,000 for a undergrad in the comp science field and could only land a help desk job. Private university😅.... im lucky i didn't go 100k over.
I have to say as a former SU officer who had to deal with student loans a lot - Corry explains the English system very very well. Note that although the Scottish system is free (for Scottish students), there are far fewer university places per head of population than England and Wales. If Scotland had become independent in 2016 (ie, before we had the EU referendum) then they would have had to introduce fees or they would have effectively bankrupted themselves with all the English, Welsh, and Northen Irish students who suddenly wouldn't have had to pay university fees in Scotland.
I have also explained in an earlier post some errors made between the distinct differences between Plan 1 and Plan 2. Plan 2 ie. current student loans are far more expensive, and have longer write off periods than the olde pre 2012 Plan 1 loans.
@@izzienewport I have Plan 1 and Plan 2 loans. If I was to earn
@@andyhartley You would'nt though as the income threshold is actually also an allowance much the same as a tax allowance so still 9% but 9% of more income on one plan than on the other. Its swings and roundabouts, plan 1 is cheaper with fairer right off terms but you are repaying on a bigger chunk of your income. Being on a crossover between both is fairly rare though. It will only ever affect two cohorts maximum.
@@izzienewport It's because I did two courses either side of 2012. The 2011 intake are on Plan 1 for their whole course. My point is that Plan 1 is only cheaper for those earning >£34k, basically because they pay off the balance of tuition and maintenance before the 25 year cutoff - that's not an exact science because of the exact amount borrowed, interest rates, etc, but as a rule of thumb it's about right.
@@izzienewport If you earn
Death - America vs UK
I’ve recently discovered there’s so many differences with how we do things. funerals, debts, grieving
it’s morbid but i wanna know
Never mind the US and the UK, the UK and Ireland/Northern Ireland is very different! In Ireland (including NI) from the person dies until the funeral, including burial or cremation it is a maximum of 2 nights (so the funeral is on the third day). It might get extended by a day if there is an immediate family member having to fly home from abroad, or if there needs to be an autopsy, etc. And for the two nights, the coffin is usually at the person's home where family and friends (including friends of your family, even if they never met your Grandfather for example). It blows my mind that in the UK, you have to process someone's death, maybe take a day or two off work, but then go back to work for 3-4 weeks (or more) and then take another day or two off for the funeral.
Is it true that Americans all stand around the coffin as its put in the ground, nobody crying, just staring, and that is basically the funeral? I've always wondered how accurate the movies are because this sounds so strange compared to funerals I've been to in Australia. For us, we go to a funeral parlour thing, coffin up the front. People do lots of speeches, might read poems etc. Everyone is crying, even old men who you never ever see cry. And after that, we all say bye and then go and get super drunk.
@@cocoacoolness US citizen here. The part you always see on TV is the burial ceremony, which usually happens after the funeral. The actual funeral, the coffin is at the front and people can go up and see it and then there is a service where people give speeches etc. It can depend on what each family wants to do, but sometimes the burial ceremony is reserved for family only. It’s basically just a final send off after the funeral service. It’s a closure thing, I think, to watch the coffin go in the ground. And then after that there may be a wake, which is the equivalent of you getting super drunk, except that for us it’s usually just a bunch of food and talking. Every funeral is different though, some do a service, burial, and wake or some other combo. The crying thing also depends on each family and their culture. For example, I’m white and most white funerals I attend, there’s some crying but nothing too dramatic. But I went to my black best friend’s aunt’s funeral and everyone was in tears, letting their emotions take over them. It was heartbreaking. So it really again just depends on each family. I have seen a lot of American tv shows that portray funerals the way you’ve described and that is weird to me too now that you bring it up.
It’s a least a decent system in the UK when I think of making it to PHD I could end up with £168,000 of debt and not have to worry about it at all
I’m definitely grateful as a us high schooler that I can take college classes for free (it’s called a college credit plus program) and get many of my classes done in high school for free and get credit for both levels of eduction. I’m in Ohio but I’m not sure how it works elsewhere
In Florida its called dual enrollment
When I was in school, a lady came to talk to us about student loans, and someone asked “so if you never earn more than £26,000 you don’t have to pay it back?” And she said “yes... but why are you going to university if you’re never going to earn more than £26k?” because she didn’t realise she was talking to a room full of Northern Irish millennials.
Tbf that's an issue all over england. Wages stagnated whilst living has gone up. When I left england last year my salary was the same that my mum made in 1988.
Pollie C tru dat! I just specify because the average salary in Northern Ireland is usually much lower than the rest of the UK. I assume it’s pretty much the same issue with regards to student loans everywhere though!
Depending on where you live £26k is an alright amount
Emily Hughes up north decent
Someone who did an apprenticeship in informatics in Switzerland can earn 100k swiss francs (82'000£) per year (in sales it's around 50k swiss francs). There is no need to go to an university to get a high income here (only 20%of students do)
I'm moving from Sweden to the UK for uni this fall, and as an EU resident I specifically chose to only apply to Scottish unis to get that free tuition 👀
Rebecka B good luck getting a job in the middle of buttf*ck nowhere in Scotland, whereas in London I earn the London living wage and more.
@@HomebaseLHR I mean the majority of our jobs are all located centrally in Scotland the only buttf*ck nowhere is the highlands and above
Homebase LHR you know a tonne of people move to big cities for grad jobs right? Including those who went to uni in Scotland? Wild concept I know
@@sophie4877 Ignore Homebase LHR, he just can't deal with the fact that he has to pay 200 a week for accommodation or whatever it is that he lives.
@@HomebaseLHR I'm not planning on staying in Scotland after my graduation, but thank you for your concern ;)
I scrolled but can’t see anyone answering “Why the 1st of September?”
It’s because that’s when our school year starts. The first day back is usually the first Monday in the month of September.
It’s also the cut off date for entry into a year e.g if twins were born on 31st of August and 1st of September the younger twin would be in the lower year.
Just an FYI, in the case of twins or even just kids close to the date you can appeal/choose. If you think your child isn't mature enough ready to start school even though they should, you can go through the process to have them enrolled the year after (if done correctly) and you can do the same for twins, to have them either in both one year or the next year, depending on their development/maturity.
But technically you can just leave them and have them a start year apart (but from a developmental perspective that makes little sense - if one is ready, both are, excluding any medical issues, disabilities, etc), but most people with twins just get them put into separate classes as they get old to ensure they don't depend too much on each other and grow as individuals, etc.
Thank you so much for doing these videos! My boyfriend is an American currently studying in England and we had no idea about the tax system and about the tax bomb bullshit. He plans on staying here after his degree so all of your visa videos also really help!
As someone who lives in Tuscaloosa, everything you said is pretty accurate. In terms of "Who wants to go to Alabama," it's way cheaper to live here than it is to live in other states.
You missed the bit about welsh government bursaries.
Scotland: Free
England: Gov course + maintance loan (9%) & university bursaries (don't need to pay back)
Wales: course loan + maintance loan (9%) + Maintance bursary (don’t need to pay back) & university bursaries (dont need to payback)
*I'm from wales and my maintance is the same size as my English flat mates, plus I get 4k from government bursary and 1k from uni.
I may not ever pay off my loan side of it, but its not something I really worry about as it will just go away.
Might not be as lucky as the Scottish, but I feel quite secure and comfortable when at uni and don't really get worried by the money side of it.
I still can't quite believe how quietly Welsh Gov took it up to £9K, I'm Welsh too and when I did my undergrad a few years ago it was only £3K a year
@@kieransawdust Tution fees in Wales are dictated by England.
Wales does not have the autonomy that Scotland or Northern ireland gets
I Was going to point this out too. I only payed 3k a year to study in England as I was Welsh. and also my maintence was like 80% grant rather than loan so my total owed is like nothing compared to my English friends.
I Wasn't Aware They'd swapped back to full fees though?! That's awful....
I think it was around 2007 (ish - don't quote me on that) it went up to 9k? so I was too young at the time to understand any changes etc). I just try looking at the brighter side - I get a grant, chances are I will never pay my loan back and if this wasn't the case, I don't think I would be able to afford uni. (which I guess is kind of the point, I guess the system worked?) Would be an absolute dream to only need to pay £3k
yeah im welsh and because my parents don't earn much I only have to pay £1000 (a year) of my maintenance loan back (I get £8000 in grant from the government a year). Its such a better system than in england
So I'm moving to Edinburgh in two weeks to study at The University of Edinburgh and a lot of people automatically assume that I must be incredibly rich to study abroad. In reality, I'm paying the exact same tuition costs as in-state school, A THIRD of what my in-state costs for housing would be (and in state would stuff me in a bedroom the same size with 2 other people and take away my kitchen for that cost), only $300 for pretty much full coverage health care, and slightly higher travel costs twice a year. Overall, the highest costs I've had to pay are to the US government for visa-related things. I'm paying less than pretty much everyone I know.
Also starting at Edinburgh uni this year ✌🏼
Beautiful city ❤️ Enjoy!
Im heading up there on Wednesday for a few days break, if I ever get the chance to move then that is where I'm heading!
people will be really shocked when you tell them this. especially scottish/eu students (myself included, also at uoe) can't comprehend the cost of education in the us. i had a classmate who said that he would pay the same about of money at home so why not do the whole degree abroad.
werosification Most things American I can’t comprehend tbh
@@katiejones1845 same lol
You could genuinely not pay me enough to live in the USA! Nothing would convince me to live there.
Honestly same here 😭😭
same and i live here lol
My fiancé is from the US. He moved to the Netherlands a year ago, but still hasn't found a job. If he can't get a job soon, he's moving back. I don't want to move to the US... 😭
@@edithnaab5098 the U.K. is just way to overcrowded, I couldn’t stand the cold wet weather. How do you visit the beach without actually swimming etc. There’d be no place to get could tacos or BBQ.
@@Jprager what we have tacos and bbq like and actually had a heat wave last summer like that is the most stereotypical thing to say
Evan is correct. This is called predatory loans in the US. This has recently been cracked down on, especially after the economy tanked in 2008. It's why I paid as I went so it took me a long while to get a 2-year degree as I paid or used company benefits for school (where you pay and if you get good grades, they reimburse you) because I didn't want to put myself or my family in debt. I do work for the state of FL now and they pay for my uni tuition but we can only enroll once other students have enrolled so our enrollment date is usually later than others so it's not much to choose from. Plus having a family and going back to school for a 4 year degree is very difficult. But hey, at least I don't have student loan debt. 🤷
Absolute favorite part of the video........"America really likes putting you in debt don't they. If you want to go to university, you've got to be in debt the rest of your life. If you want to get sick, you've got to be in debt the rest of your life."-Corry That is the most accurate and depressing statement I have heard about the US. I have a ton of student loan debt as well.
It feels like the UK and European governments in general act thinking about the people while in the US .... it's all about making that sweet cash.
In europe governments serve their citizens, in the usa goverment serves corperations.
As someone who is going uni next week this title terrifies me
*shakes maracas* welcome to debbbbbbbbt
Good luck
@@evan that'll help 🤦♂️
I start uni in a few weeks and I won't have to get any loans, because tuition is less then 500€ a semester.
And even if I get a loan it will be 0% interest if I'm really in need of one.
And still everyone says my government should put more money into education.
god, same. i'm starting in a couple of weeks and i've only just had the realisation that i'm going to owe a ton of money to the government afterwards.
Evan: freaking out about the 1.1% interest
Me looking at my 0% dutch interest 🙃
Same in Australia
Yes. I'm definitely not in a hurry to pay it back! 😂
I feel you, 0,05% in sweden
Same in Aus...
Same
EU: You have to treat people from a different member of this union the same as your local people.
USA: How about no?
Evan: Says anything about America*
Everyone else: Is horrified*
The rest of us: Yeahhhhh, sounds about right.
Oh my! The danish system would blow your mind. We get university for free apart from the fact that we have to pay for the books we use. On top of that, we get student benefits. Every student, no matter income gets this and its about 600 pounds a month. If we then need more money, we can apply for students loans that has an interest of 4% while we are studying but when we graduate and start paying it off it goes down to 1%. :)
Woah, 600 in benefits every month!? Lucky! In Norway we get a loan every month, and part of it gets turned into a stipend if you complete your courses/degree. Also, we don't get charged interest while we're still in uni, but interest starts rolling as soon as you graduate or stop receiving payments. You get a variable interest by default, and atm it's 1.4%
@@LinniC93 So if you don't finish your education you have to pay it all back? So you can't change your mind and then switch to something else without having to pay it back?
@@1010Lone If you don't complete the degree you only get 25% converted to a stipend instead of the full 40%. But this rule about having to complete the degree is brand new, so not sure about changing your mind. But I imagine that if you "drop out" and start anew on a different degree that you'll have to pay back those 15% you'd otherwise get. I guess it's supposed to encourage people to complete their education 🤷♀️
It’s basically the same here in Sweden, apart from that the interest is currently 0,16%. :)
I love the British system of student loans coming from an american
Thanks im British
Yes, I’m in high school and my college counselor talking to me and said “Honestly, I haven’t even paid off mine and I won’t until I am 38, so let’s look at these scholarships.”
Wait till you hear the European system, particularly Germany. Don't know the details as a Brit. But the German tuition fees are dirt cheap, like much less than the UK 9k.
orana03 isn’t Germany like 10 bucks for a transit pass and that’s it or something
@@orana03 it would've been free but you can see why it's not eh
9:25 I think it’s those dates because that was when there was a change in tuition fees. The raised tuition fee in England and Wales from £3000 to £9250 came into effect in September 2012. Hope that helps!
my man!
Evan Edinger Lol, I’m a woman, but thanks anyway, Evan! 🤪
Yeah I was finishing my Master just as the new tuition fees came in, so my fees were about 3.5k per year (3 years) for my BA, and then about 4-4.5k for my MA. I was so glad to miss the price hike.
Actually it rose to 9000 in 2012 and 9250 in 2017 i believe as on my final year of uni was the last time tuition was 9000 and that was 2016/17
In Wales it's £9000 not £9250
Yep. It was cheaper for me to do a study abroad semester from Texas to Bradford, England and so I did it and met my hubby and now live over here in England!! Best decision ever!
Moral of the story. Study in Germany, Austria and Switzerland the tution fees is much lower. Also chose a course that teaches in English.
Big point was missed in this about Northern Ireland students who study in unis in Northern Ireland only pay about £4000 per year but everyone else from the UK and EU pay £9250. NI students get a reduced rate due to the troubles and encourage young people to go to higher education. The reason the EU students don’t get it is due to NI students being charged £9250 but instantly getting money from the government to reduce it to £4000
That's probably still unlawful. At least it was when the UK was in the EU. Germany tried to introduce a road toll that only affected foreign vehicles. Everyone had to pay it, but Germans got it credited back by the government. The EU court ruled it unlawful.
There is also an advantage to being a "mature" student, if you're over 25, the only income they take into account for anything means tested, such as maintenance loans and grants, is you're own whilst you're studying and it doesn't include any income you'll get from any small part time jobs. So when I finally did my undergrad, I was able to put down a £0 household income, reduce my working hours to around 12hrs a week, which brought me in around £1000 a month and still get the full maintenance support from the government to make up for the lost earnings from reducing my hours which totalled about £4-6k over the course of the year (can't remember the exact figure, was a mixture of loan and grants). The maintenance loans get lumped in with the tuition loan so both will get wiped out for me 30 years from graduation, grants didn't require paying back. My university also did scholarships for students entering with over a certain amount (i think it was 250 or 300) UCAS points, which, at 420, I qualified, so I got about £1200 in my first year down to around £500 in my final year. I had to maintain a 2:1 average in each year to keep getting it in subsequent years though.
Same is true in the US - if you're married or over the age of 24, ward of the state at age of 18, or have served in the military, you are considered independent and only your income counts.
I really don't think it's fair that a mature student could get more support than a student barely entering adulthood but that's just the system I suppose.
April Summers the premise is that 18 year olds have family support. Obviously not always true, but in the US you can try to get independent student status if you aren’t in contact with them. At 25 I was independent and had lived 2000 miles from my parents for 8 years and got no money from them in that time. (Also being a 27 year old in college is HARD - can’t sleep deprive yourself in the same way)
@@anomalily yeah I get that. Being in school can be hard for anyone of any age. But I assume you don't need to be a mature student to apply for an independent student student. From what I'm gathering from darklord Devilish, in the UK, a mature student can get the max maintenance loan from student finance regardless whether their parents help out or not. Which if I'm being honest, I do question the fairness of that.
@@aprilsummers6447 In the US, you get independent student status automatically if you are over the age of 24, have left the military, have a kid, are married, or are ward of the court (no parents) when you turn 18. It's then only based on your income, not your parents. Otherwise you have to petition that you're no-contact with your parents. You can just wait until you are 24 and work if you don't get support from your parents, that's what I did. It's actually quite fair as long as folks that don't have parental assistance CAN petition to prove that they don't get help from their parents.
I think bursory or however you spell it is more comparable to Pell Grant than a scholarship, because Pell Grant comes from the government and doesn't require any essays, just a FAFSA form.
I second that. I carefully strategized paying for school. And Pell grants as well as other "free money" options are what I used to get 2 associates degrees.
Problem with pell grant, is that it is still FAFSA-based so if your FAFSA indicates that you should be able to pay... then pell is not going to do much
@@keyboardsmash3983 yeah, that certainly could be a difference. I can't quite remember the nature of bursary as it was described though
I have to pay back Pell grants and the interest wasn't stopped or payments paused for covid 😅
I've never had to take private loans for my education thankfully, but upon reading my federal student loan contract, if I die, my loans are immediately forgiven. I made sure that my parent would never have to pay for my student loans if something like my passing were to happen, as I come from a low income household
For my second attempt at uni, I had to be put through as an independent student because they wanted to assess me off my birth dad’s income even though I’ve never lived with him. The Student Loans Company refused to assess me off my parents income. Then I had the problem that they claimed I didn’t earn enough to be classed as independent so I had to prove that I paid rent and bills from that lower wage. It really sucked and we had to get an MP involved to get them to actually take another look as my case
While it’s technically the “English and Welsh system” I think Wales falls somewhere in between Scotland and England tbh. It’s not free, but we get it cheaper no matter where we study in the UK, while the Scottish system only applies if you study in Scotland.
When I started uni in 2015, the Welsh gov was paying £5,500/£9000 of my tuition fee, so I only had to pay £3,500, which they updated to an equal £4,500 split for my second and third year; I only have to ‘pay back’ £12,500 for 3 years of uni tuition while all my English flatmates had tuition fees of £27k (iirc, Wales opted to keep tuition at £9k instead of adding the extra £250)!
Wales also still has a proper maintenance system, which the English government is severely lacking in lol - Welsh students receive a mixture of loans, which are repayable, and grants, which aren’t. The maintenance cover currently totals around £9k a year for everyone who is living away from parents, regardless of family income, meaning that the means testing applies to allocation of loan/grant within that figure, not the sum total. I believe it’s somewhere around £12k a year if you’re studying in London though bc it’s hella spenny to live there! Plus, we have the Welsh government partial loan cancellation - you make a £50 (that’s what I did anyway) payment on your loans, and a nice (up to) £1,500 wipes from your loan. That’s before any uni specific financial help as well, which varies greatly depending on where you study.
*Cries as Welshman whom was living in England when I had to apply*
At least I went when tution was only £3K...
Partial loan cancellation is interesting, I'd never heard of that! England got rid of our maintenance grants a few years ago which sucks - I think the amount you get is more or less the same as when we had grants, but the whole thing "has" to be paid back now!
I'm on my second year of uni in England and I think for 3 years overall my debt will be roughly £45000. I only have to pay back a small percentage over the threshold and I dont pay any back for 2 years after graduating anyway, i do believe. I've always been so grateful that I live in England and can get this kind of debt and not the American version. The idea of the tax bomb is insane. 😲
You’re lucky! I graduated in 2016 and got the minimum maintenance loan alongside my tuition fee and when I got my letter from SF through once I graduated, it said I owe £53k! I’ll probably never earn enough to start paying it back anyway, I want to be a funeral director and they don’t earn near the minimum earning to pay it back
@@Jess140594 That's what's so great about our loan system.
You did a degree and ended up earning a good amount of money (currently above £26,575 - barely below the average income for UK adults)? Pay a fixed percentage towards your student fees! If you earn the average income, you pay around £30 per month!
You did a degree, but your income is still relatively low? No worries, don't pay anything unless your salary goes up a good amount.
Our universities are expensive on paper, but only needing to pay back what we can afford is brilliant
Ouch wait I'm guessing it's £9000 not £3400 a year lol
@@lordshadow3822 I believe its £3400 for Welsh students in wales
@@natjohns8015 yeah. It was £3400 when i went to uni (in England) back in 2008/2009
Imagine paying for tuition... couldn't be me
*Bagpipes starts playing*
Jaques à dit generously funded by the English taxpayer
@@HomebaseLHR Ok, where are all of you getting this information.... because I can't find a source
I work with councils a lot, Cuts to education caused by the conservative government are what causes schools do be shut down and understaffed in Scotland. England doesn't do magically pay for everything bud
@@jaquesadit3240 you couldn’t afford it without England 😂
@@thegoldminer7489 Ha, it's funny that you think that....
(Edit) read my above reply
The underlying part of the American system that was left out is by deciding where and what to go to school for you decide how big the loan is in the end. community college and in state tuition are very affordable and easy to repay. Problem is a lot of 18 year old's have champagne taste on a beer budget and the loan people will give you what ever you want at that age because you cannot get out of the loan. So essentially we let children dig how ever big of a financial hole they want, then enforce them paying it back at some point.
A clarification: in the USA, a PUBLIC loan (so from the government), if you die, the debt disappears. If you have a PRIVATE loan (not from the government), it sticks around until it's fully paid off. You're correct that if you file bankruptcy, it doesn't go away like other consumer debts.
I went to university in London, in the early to mid-90s. At that time tuition was free, and you got a grant from the government for living costs. The grants were in the process of being reduced at the time, and student loans were being introduced. Prior to the reductions, I believe that the grant was about £3k. With it being the 90s, that money went further than it does today.
I feel like the Scottish has changed a bit (I'm about to start uni):
Tuition is free for anyone who has lived in Scotland for at least three years and you're not only there for that. Is paid by government.
Maintanance is just around 5.5 grand, this has to be paid back.
Maintanance bursary is means assessed and can go up to 2 grand.
University bursary/scholarship depends on uni, is usually means assessed and doesn't have to be paid back. Eg. Edinburgh give you up to 3 grand per year of study.
Sorry, if no one's interested, just thought I'd clarify it.
Yeah I just graduated in Scotland and we didn't really have the uni bursary/grant thing and the couple that we did have were super specific. So it was pretty much just SAAS.
Honestly I wish we worked like Scotland and had free university, it would be so much easier
AllTimeBubble Yep I live in Scotland and it’s way better than England, free uni and free prescriptions and so many more benefits
Tories don't want that though 🤷♂️
Tories aren't ready for that conversation
😔🤟
@@emmaw_5719 ye it's really good
I start first year in two weeks and honestly the process was so easy
Just wanted to add - I'm from Wales and going to uni in England and I found out there's a Welsh Learning Grant scheme which means up to £8100 of your maintenance grant is given as a bursary from the Welsh government. The rest you get as a normal student loan but I think this is great 😁
"If you're really poor, good" No this literally is the case, I get maximum maintenance loan and bursary because my household income is so low. Perks of being broke!! It's lit
It's hardest for people not poor enough to get a big loan but not rich enough that their parents can cover them. So most of my friends had parents paying their rent completely and used maintenance loan for everything else, but tons of people's parents can't afford to help them, but since they're on slightly higher incomes than me aren't able to support themselves with just the loan/bursary if they get one.
Other problem with the household income thing is how households are decided. Saw on TV that a girl's mum had her partner move in, suddenly his income counted and she wouldn't get enough loan to live for the rest of her course. Even though he wasn't her dad and hadn't even met her until she'd gone to uni, it was assumed he would be helping out. In fact I don't think he'd lived their in the tax year that was being assessed, but his income was still taken into account.
It's also not explained very clearly that parents are expected to make up the difference (i.e. top up their kid's loan to the maximum out of their own pocket) and it's kinda ridiculous to assume they can - not sure other children, whether at uni or in school, come into the equation.
This might be the longest yt comment I've ever written, I just have a weird obsession with knowing everything about SFE!!
It also doesn't take into account if it's one person or two with that income. So if you have one parent earning a certain amount, then you can lose more to tax than if it were split between two people, but that isn't taken into account.
So you'd be better off with 2 parents earning 20k than one earning 40k.
In Belgium, almost nobody takes out a loan. Most people with a low income houshold get a bursary from the government and university is pretty cheap. Tuition is now around 980 euros a year. You will only need your books and maybe some tools/materials for some courses. Most students can earn enough with studentjobs/studentwork in the weekends or/and in the vacationperiods. If you want to take out a loan, you have to go to a private firm (mostly banks). Only people that live in Brussels or in Wallonia can get a loan from the government, not the people from Flanders.
yes, also in Italy it's pretty similar, even people with pretty low incomes can go to university, the most high cost universities are private and cost about 9000 €
Edit: This was correct when I started Uni in 2016 but the policy has changed now, however it is still different to the English system since Education is a devolved power. ✌🏻
It’s different in Wales, if you’re Welsh and you study anywhere in the UK tuition is £3,300 a year and we also get a means tested grant on top of our loan. We have a Labour government who subsidise 2/3rds of our tuition fees. 🏴🏴🏴
That’s not true at all. When is your info from?
That's not true, though it might have been a few years ago. I'm from Cardiff, starting uni in England this year and my tuition fees are £9,250/year. I do get a hefty Welsh Government grant though for maintenance (the maintenance allowance is split into loan and grant, always £9810/year - more for studying in London - and how much as a grant is means-tested).
Yes it is true, my uni was £3,300 per year as the Welsh Government paid the rest!
Emmet Moore You’re right! Sorry my bad I just checked and it changed in the last few years. There’s more emphasis now on maintenance grants rather than tuition fee subsidies. Good Luck at uni this year!
Just Amanda Sorry you’re correct it’s not like this anymore! But it was when I started uni in 2016 😅
I haven't started paying back my loans yet after leaving uni in 2017. I owe over £50,000 at this point. Its £9000 a year of tuition plus about £5000 a year in maintenance loans and then interest. Last year I bought a house and can't imagine my student debt counting against me there. I will never pay off my student loans in all likelihood
Congrats on buying a house. However, out of curiosity, how can you buy a house when you don't make enough to start paying back your student loans?
@@aprilsummers6447 I lost a number of grandparents in the last few years and with inheritance from that I was able to have a significant deposit. So I guess I was luckily unlucky.
@@RubyMadigan Oh. I'm sorry for your loss.
You are right Evan about it hitting the working middle class the most. My parents earn enough that I don’t get the full loan however they don’t make enough to support me. I have to pay an extra grand of money for my accommodation (I got left the money by my grandma) yet one of my friends got a full loan and her dad paid for her accommodation. It annoys me because I see people who don’t need a job at uni and can go out all the time yet I have to work to be able to afford food. I understand the reason behind it but it doesn’t always benefit everyone
The scholarship thing was the same with me!!! My dad left and started a new family. His child support was 150 a month and he stopped the minute we turned 18. I had to include his income in my FAFSA. It counted against me big time. Ugh. And of course he was not going to help . He didn’t give one crap about us .
I’m Scottish going to uni this year, my tuition fee is £1,800 paid by the government (don’t pay back). I get a 2K bursary(again don’t pay back) and 5k student loan.
I'm Scottish and the same figures too. I was having anxiety with Evan getting information about a mostly English situation. Scotland is different 🙈
bro what😭 i’m going uni this year (in england) and also 5k student loan and 9k tuition loan😭 and i still have to work to pay for my accommodations😭
Lakishan Sivakumar omg that's so fucking harsh omg, 7k loan and bursary covers me well for the year, England is fuckeddddd
Clueless Becks The only reason it's so much cheaper in Scotland is because English taxpayers subsidise Scotland. We spend more per person on the Scottish than we do on our own citizens. Hundreds of millions of pounds every year. That's why Scottish independence is such a joke- they would be screwed if that money suddenly dried up. The sooner it happens the better.
Clueless Becks yea you lot have it better but what the other person said is also correct ahah, i start uni in a week😭
I think you have to be earning a certain amount for the government to even begin to taking money to pay for the loans :)
You accrue interest from the day you start your course but you're correct.
Repayments on Plan 1 start at around £16k (I'm plan 2 so I don't know the exact figure)
Repayments on Plan 2 start at £25k
yea we have to earn 23k+ a year
9% for however much you earn above £25000 so if you earn £32000 a year they’d take 9% of 7000
Honestly i have to say i really like the uk student loans method. Like yeah, it isnt perfect and still has its flaws (like basing the child’s loan on your parents income instead of just standardising it??) but i saw a video on twitter where an american lady was weeping at her computer because she’d paid 100 grand of a 70 grand loan and STILL had more interest to pay off :(
Yh it's a bit wack but at the same time i kinda get it. Some parents can afford to help their kids, some can't.
Its the idea that if you are able u should continue to support them.
The problem is some don't lol.
Maybe it should still be means tested but the difference should be smaller.
The thing is people don't pay it back so the government can only afford to give lots of money to those who absolutely need it. So it's a bit of a hard one
@@janani1826 yeah agreed. I used to think that, but me and my brother were in the highest bracket (so we got the least amount of money) but my brother bought a car which my parents loaned him £1k for. And I just bought a laptop which again, £1k loan from my parents. My parents would never straight up give me money or pay for anything, but a lower income family probably couldn't afford to just loan a grand for funsies
The loan isn’t based on parents income, just a bursary. So every student in the UK gets the same tuition and maintenance loan. However if you are from a low income family then you might get a) an extra bursary ranging from a few hundred to thousand pounds from the university or b) get a reduced maintenance loan plus a maintenance bursary to make up the difference. I got a maintenance bursary so I have less loan to pay off than my friends who only got the loan. But the university bursary I got was only a few hundred and helped pay for a laptop for uni that my parents couldn’t afford. My friend’s parents had more disposable income to support them with things like laptops. So it works out generally
@@simpleyak no the maintenance loan is means based (at least definitely in England) ...
The tuition loan is always what the tuition fee is but maintainance is means tested legit just go on the gov student finance calc and u will see
@@janani1826 the maintenance loan is means tested but everyone gets a certain amount (just over £3k I think??) and then there's a maintenance grant added on which gets to about the same amount as the loan if you're on the highest amount
Evan there’s such a thing as the federal Pell Grant (max $5200) and in Virginia a state grant (~$8000) offered to very low income students. It’s offered every year and it’s based on the FAFSA. You don’t have to pay either of these back. In addition, your university can offer grants based on available donor funds. So its possible to go to school for free if your family has been consistently low income. Also an important point you missed is that in state tuition is cheaper because theoretically your family has paid taxes to the state for years and the state gives in-state university tax money so that’s why it’s subsidized for in state students.
I am glad I live in Scotland in midlothian, honestly can imagine having to pay that much in loans for uni its insane
I’m welsh. I just finished my undergraduate and no matter where I studied in the UK I only paid just over a 1/3 of tuition. Plus the Welsh government still gives grants and well as loans.
In conclusion: don't go to America to study
This is why I'm going to community college for my first two years. It's significantly cheaper.
I went to community college my first 2 years
And I had so many scholarships for it, I actually got PAID to go there for 2 years
but 3 more years + INTEREST is... a lot
Smart. Sometimes if your parents don't make a certain amount, federal aid can completely pay for community college.
And Fed Loan has interest rates at zero right now/every loan is technically in forebareance until the end of the year.
Or come to europe where its even cheaper :p Well aside from England apparently
Love these videos. I learn so much. I am very lucky to be Scottish. Four year bachelor degree was complete free and my post grad (Masters) was £5k.
My boyfriend owes $80,000 but didn’t graduate and i owe no money and graduate this year! He wants to get married though and I’m like..... “but that loan debt...”🤣🤣🤣
So how's it going?
Prenup
So many people breakup over money issues, so talk about it now and what the plan is to pay it off. Don't wait to have that convo after you guys are married and you now realize your credit score is shot and you guys can't buy a house.
Ever lasting love 😂🤣😂
Make a prenup just in case you separate or death. It's his debt, not yours. You two should be open about all assets and debts each bring into the marriage to assess the financial ground before
Then you two work out a plan to gradually pay all debt and live.
You both need to be discipline about budgeting and manage earnings and you should be OK.
My mother worked as a TA on top of her financial aid to avoid having to take out student loans, and she is now very glad she did.
UK graduate: checks student loan debt from April 2019 (for some reason not letting me check for real time) and I'm at £46,000 :))))))
join the fiesta
I just graduated and I'm just shy of £65,000...
I'm a UK graduate too, and last time I checked mine it was £15k :-)
Haven't started paying it back yet.
Mines around £50k 😂 bc I did a masters too 😑
@@hanzib31 I went to Scotland, back when it was £1820 a year for English students.
This is so depressing to hear.
I didn't pay anything for University, neither for my BA, nor for my MA, everything was paid for by the government, as I had good grades and good national Bacalaureat results when I applied.
I also got a lodging reduction and a bursary from my University because I had obtained good exam results (the bursary was enough to pay for my housing and bills, plus a little left over).
The fact that it is after September 1998 reflects when tuition fees were brought into England. Before that, English students didn’t pay fees. The 2012 date reflects when the tuition jumped up from about £2k per year to £9k per year.
The interest and threshold also changes depending on the plan. The interest for Plan 1 is 1.1% and you pay back 9% of anything over about £19k.
The interest for Plan 2 is 5.6% and while you study and then changes every year. You pay back 9% of anything over about £26k.
It then gets trickier if you have a Postgrad loan too (and PhD loans are paid back similarly, though I think tu get them through the uni rather than the government). Interest on Postgrad loans is 5.6% and you pay back 6% of anything over £21k.
So in my family:
My husband: went to uni before 1998, nothing to pay back.
My sisters: went to uni before 2012, roughly about £15k to pay back on Plan 1.
Me: went to uni after 2012 and did a masters: roughly £45k to pay back on Plan 2 and £11k to pay back as a Masters Loan.
Corry is right that most people don’t have to think about t because it comes out just like a tax. However, if you are self-employed, like I am, you are responsible for making sure you have enough money to pay back after your tax return has been filed, just like your taxes. So I have a very complicated spreadsheet to make sure I know exactly what I have to pay back haha.
This makes me really grateful to be in the Australian system. We are very similar to the UK, our degrees cost more though not sure if they do when you do the conversions. There is a tiered system for the cost so degrees like nursing and teaching and cheap but courses like architecture and doctors cost the most. I did teaching and I would pay in one semester for 4 courses what my sister would pay for one course out of 4! But we have a HECS system that when you get a job on the tax form you elect whether you have a loan and you have more tax taken out of your wage to allow for the fact you have to pay it back. Each year when you earn over 42,000 you have to pay back at 1% of your income and the more you earn the more you have to pay back. You have the debt until you die/pay it off but it is your debt alone so your dependents aren't slugged with it. It is fairly common for a lot of people to never pay it off as you have to earn enough to pay it off but it's just dealt with as part of your yearly tax so not a big deal. Though there are some rules they've put in place about living overseas as you do still have to pay it back in those circumstances.
I'm an American, perm settled in Edinburgh, with those lovely, lovely US Fed loans. I did not know about this IRS Tax bomb, so thanks for the heads up. Ah, America, you evil, greedy thing.
Every time I tell how the American loan system works to my UK coursemates they look at me like I'm telling a wild lie. They then go "well youre studying in the UK though....why aren't you getting UK loans??"....like...I wish 😭
I like the yearly update letter with something like 'this isn't a request for money' in capital letters
I just graduated this year in Scotland and I learned more about how I pay back my student loan from this video than any of my own research 😂
My mind is blown! I knew the system in American was harsh, but this was very illuminating. In these cases, if it is widely known how you'd be saddled if you did choose to go out of state for university, why do people still do it? It sounds like a perpetual struggle
There is also a lot of predatory counciling when it comes to education. They will make you feel like its your only option
You have to make these choices at 17 years old, you only get one shot unless your family has money, and most people have no concept of this kind of loan amount at that age. 🤷♂️
Hi! Current student in England and Wales here! So, the interest rates for plan 2 are based on the RPI (Retail Price Index) + 3%. The RPI this year is 2.4% so this year, the interest rate is 5.4%. Last year, the RPI was 3.9% so it was 6.9%.
Oh, and you mentioned bursaries but I can't remember if you mentioned maintenance loans which everybody in the UK can apply for and are means tested so you can get between £4,000ish and £9,000ish depending on your household income. (The one slight problem with that is the interest rate on that is fixed at RPI + 3% whether you get the maximum, minimum or anywhere in between so the poorer you are, the more in dept you get. I contacted the Universities Minister last year and their response was "it is only fair that those who benefit most should repay their fair share". That's the Tories for you.)
I'm from wales and we get an additional welsh government grant of up to £5k ish on top of the maintenance loan
@@KieraLiane Ah yes. I should have mentioned that the maintenance loan systems are different in England and Wales. Thanks for pointing that out!
From what I understand of the Welsh system, do you get a grant that means that your maintenance loan and grant add up to the £9,000ish?
@@bufftailedbumbledragon450 yeah my maintenance loan was going to be £6k I think and then they replaced £1500 of the loan with grant so I didnt have to pay that £1500 back. So it was £4500 loan and then the £1500 was part of a £5k grant so I had a lot of maintenance money £8000-£9500 (it varied in my 3 years) and i didnt realise my english peers didnt get as much
@@KieraLiane Yeah, the English system is basically "you get this much as a loan and if you need more, ask your parents or get a job."
As I go to a public university in Argentina, hearing about those students loans makes me anxious lol
Lol they are public though
Private universities cost even more 🤣
As a person who studied in a private university in Venezuela, dropped out, and then moved to Argentina I can say that logistically a public university here is terrible in comparison but im so grateful for the rest because its great and FREE.
I wouldn't be able to study otherwise
Denise E lol la burocracia de la UBA (donde estudio) deja mucho que desear pero hay muy buenos profes en general
Evan is right, the interest is dependent on the state of the economy.
The bank of England has base rates that will change (say cos of covid) and that affects the interest rates
The good news is that the worse the economy is, the lower the interest rate generally...
@@anomalily unless you have invented lol (savings accounts, isas etc)
Janani yea, our prime interest rate in the US has been really low since the last recession. Great for borrowing money, less good for savings. That’s one reason so many people are investing in the markets right now, prime has been so low for years.
That was the most perfect TLDR statement on US student loans ever. Sums up the whole entrapment system nicely:
"In the US.. you do sign up for this dream of 'you'll make a lot more money and you can have a new life in the new land of having a college degree', and there's no actual way of possibly paying it back for most 90% of people. So therefore, you're kind of working endlessly to pay back this interest growing loan that will never go away".
You literally become a cash flow for the company.
To do clear, federal student loans do NOT have to be paid back if the student dies. Private loans DO have to be paid back though, as they are just like any other loan from a bank