“University is my biggest regret”: I earn £70,000 and it’s STILL not enough to pay off my student loan

The financial burden of a student loan has increased dramatically for the current generation of young people.

In 2012, the top annual rate rose from £3,000 to £9,250. More recently, inflation-linked interest has meant graduates are paying an exorbitant rate of 7.9%.

Figures recently released by the Student Loans Company show that almost 2 million people now owe between £50,000 and £100,000 in student loans, with one person owing a whopping £252,000.

Anna*, 31, graduated from university 10 years ago and says that although she earns £70,000, she is only paying off the interest on her loan. Here she shares her experience of feeling “trapped” by the student loan system.

Until 2022, I never worried too much about my student loan.

I hadn’t thought much about it because, as everyone says, it’s the amount you pay, not the balance.

However, when I landed my dream job working for a large company in London, my salary increased significantly.

I had to move to the Southeast, so my cost of living increased, as did my tax payments. Of course, my student loan payments and interest increased significantly as well.

I now pay £4,000 a year on my student loan. That just covers the interest, so my current loan amounts to £46,000.

I originally borrowed £37,000 and have already paid back £12,000, so I have accumulated almost £20,000 in 10 years.

I’m 31 now, so my loan won’t be paid off until I’m 57, if my salary stays about the same. That also doesn’t take into account the fact that I take time off work to have kids, if I ever have them.

I will be paying around £100,000 for my business degree, which I simply don’t think is worth it.

Even if I get a pay rise to £100,000, I will then pay £6,500 a year and still not repay my loan because the interest is now 7.9 per cent.

If you live near London, it’s not unusual to have a salary of £70,000 and also have to pay rent.

I don’t expect anyone to feel sorry for me or anyone else on a higher salary, but I can’t believe that even if you earn over £70,000 you can’t pay off your debt and are only paying interest.

You want to go for your dreams, your aspirations, and feel like you’re getting somewhere, but now I pay £2,000 rent with my partner, and I have to pay tax and then my student loan is paid after tax.

I thought that by taking this job I would really feel the benefit of it, but I’m not much better off than I was.

My take-home pay is only a few hundred pounds higher each month than when I was earning around £40,000.

I am tempted to start paying off the loan with some of my savings and extra payments.

I actually made a payment of £19,000, but then changed my mind and miraculously managed to get it back before it was fully processed.

This was one of the most mentally challenging nights of my life, I didn’t sleep all night and felt sick to my stomach.

I can’t predict the future, and the government could change the rules on student loans at any time. What if the rule on when loans are paid off went back to 30 years and I wished I hadn’t made that payment?

There’s a lot at stake when you’re 31. I’ve never spent so much money on anything.

The Reform Party said during the election campaign that it would eliminate all interest on the loan, so that each payment would actually pay off the loan.

When you hear parties talk about policies like this, you think: “I can’t afford to pay for it all at once.”

I really don’t know what to do. I feel trapped, it’s the biggest regret of my life and I feel like every success I have is a punishment.

I was about 18 when I took out the loan, I didn’t understand interest rates or how compound interest works. I feel like people are only now feeling the effects of this, because I was a first-year student at university with these £9,250 fees.

I work in sales and I think I could have gotten a similar job without having to go to college. I would have preferred to do an internship or find a different path that wouldn’t leave me with such a large loan to pay off.

The effect on my mental health is serious, as I see no way out.

Either I put aside £50,000 of savings by the time I’m 31 or I end up potentially paying more than £100,000 for my degree. In the worst case, it could cost me as much as £200,000 if I’m really successful.

It made me feel like all my dreams had come crashing down. Much of my job is stressful, but I took it for the salary that I now don’t enjoy due to the rising cost of living and student loans.

I cannot understand why it was organised like this. The politicians do not have this possibility: most of them obtained their degrees for free.

*Name changed

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