Case Study - Paying It All Back

Yasmine graduates from her 5 year MBBS at Leicester in 2009 (she started the course in September 2004). Her debts are:

During her F1 year she may get free accommodation as the hospital. (But NB from 2008 most NHS Trusts will not provide this accommodation without charge). She works out a budget:

Yasmine repays her high interest credit card quickly. She also makes extra repayments on her Professional Studies Loan, having first checked that her loan had no redemption charges for early repayment. She also manages to repay her overdraft before interest charges begin on her graduate account.

In her F2 year, Yasmine decides to buy a house with a friend. On a salary of £36,880, she is able to borrow £129,080 (3.5 times her annual salary). She also takes out a £5000 graduate loan at 7.9% APR to buy a car to travel to work.

If Yasmine becomes a GP, based on current salary scales she can expect to repay her student loans within 9 years. She will repay her loans in 10 years if she stays in hospital medicine.