How overjoyingly nice. On a typical three-year debt such as my own (say ?13000 as a baseline estimate), that amounts to about ?33 a month interest growth, a not insubstantial amount.
Under the current repayment system (9% of income over ?10k), anyone earning between ?10k and ?14.5k will not be repaying quickly enough to negate the interest growth. Assuming the same percentage is maintained with the increased starting freshold of ?15k this range rises to ?15k-?19.5k, rapidly approaching the rumoured average graduate starting salary of ?20k.
The worst is, this is somewhat approaching a best-case scenario: a four-year student on full loan could easily expect debts approaching ?20k, and medics' loans must be astronomical, making repayment *much* harder.
Kinda makes consider the relative merits of being unemployed :-)
If students are so broke how come most of them don't bother doing any form of paid work during term time, they still go out drinking and the majority can afford TV's, Videos, CD systems and mobile phones?
Hang on, I've never known anyone at uni to go out and buy a TV or video by themselves. Most people either bring them from home, have them as part of the furnishings of wherever they are renting, or club together and buy collectively.
I'm not sure how you define luxury, but if you ask most people in the country whether trying to live on ?5k a year in the most expensive city in the country (if not Europe) fits the bill, I don't think many would agree.
But this is a digression. We're supposed to be discussing the huge avoidable debts after uni, rather than the poverty during it.
If you leave Imperial with about ?15k worth of student loan and pretend it's just a graduate tax that you'll have to pay until retirement age, you can get away with earning just over ?17k a year, using the new interest rate.
If, however, you actually want to treat it as a loan and try and pay it off before you're 30, you'd better start looking for a job with a staring salary of at least ?31k.