Watch this TV Program from Martin Lewis
/If you’ve got kids (or are a kid at heart) or just want to watch something inspiring I strongly suggest that you watch this program from Martin Lewis.
It’s billed as “Ten Things Your Kids Need to Know”. It makes some very good points about modern life and how the world of work is changing. It also makes a very strong case for university. Apparently there is concern that potential students are being put off by the debt that they think they will incur by taking a degree. The way Martin explained it was awesome.
He said that you will only start paying back your student debt when your income exceeds 25K (which is a nice problem to have). The amount of your payments will be 10% of the amount your income exceeds the 25K threshold. So, if you earn 30K, you will be paying back a tenth of 5000 a year, which is around 500 pounds.
Then, after 30 years your student debt is written off completely. So when you retire you won’t have the debt hanging over you.
From a planning perspective, you know the absolute maximum that going to university will cost you, based on your income. If you don’t bring in enough to cross the payment threshold then you don’t pay anything back. Your student loan will not lead you into debt, because you only start paying it back when you have money coming in.
It’s complicated, but worth getting your head round because, as Martin pointed out, going to university is a great way to realise your potential had have your horizons properly broadened.
I’m by no means at the beginning of my career, and yet I still found the content of the program inspiring and illuminating. Watch it. With your kids if possible.