#40 A student loan is a form of debt, period! Why I disagree with Martin Lewis..‪.‬ The Money Spot™ - UK Personal Finance

Now, I disagree with Martin Lewis (the founder of moneysavingexpert.com) on many issues related to debt but on no issue are we more at logger heads than on student loans!

Martin Lewis is of the view that UK student loans are not really loans but a form of tax, a graduate tax, in his view…his reasons for thinking this way are based on the way student loans are currently structured. I disagree because viewing UK student loans as a just another tax ignores the following critical issues which are explained in the podcast:

1. UK student loans are not interest free;
2. The repayment threshold can change, so: caveat emptor;
3. Student loans might not be forgiven in the future;
4. Student loans reduce the rate at which you can save, invest and jump onto the property ladder…

In the ideal world, student loans wouldn’t exist and everyone could get a tertiary education for free. However, student loans do exist and I think it is helpful to view them as loans and to either avoid them or use them wisely as elaborated in this podcast.

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