Graduate regrets studying despite 83,000 euro salary

A 31-year-old university graduate from Britain reports to the “Daily Mail” to say. Despite an annual salary of more than 83,000 euros, she is making little progress in reducing her student debt. She feels “trapped” in the student loan system, which burdening her with ever-increasing interest rates.

A university graduate will be stuck in debt until she is 57

Since graduating from university ten years ago, the graduate has been paying 4,700 euros a year for her student loan, which just covers the interest. She initially received a loan of around 44,000 euros, but due to the high interest rates she is currently in debt for almost 55,000 euros. With the costs of living in London, where she lives, her salary is simply not enough to get out of debt, the 31-year-old complains in the Daily Mail.

She says she was only 18 when she took out the loan. At her current salary, she will be stuck in debt until she is 57. She estimates that by the end she will have spent up to €120,000 on her business administration degree – and she summarize sadly: “I regret going to university.”

Student loans in Germany are meant to prevent a debt trap

In Germany, too, students have this BAföG the opportunity to receive support from the state in their training. The funding is aimed primarily at poorer families who cannot provide financial support for their children. The money received must be paid back five years after the end of the normal study period.

However, a cap and different repayment options are intended to prevent a situation similar to the one in Britain. Only half of the loan obtained must be repaid and the amount is usually limited to 10,000 euros. In addition, the best graduates and students who finish before the normal study period will receive significant discounts. If you can pay everything back in one go, in the best case scenario you can get up to 50 percent waived.

University graduates earn less than master craftsmen or technicians up to the age of 60

Nevertheless, young people in Germany should think carefully about starting a course of study. Your future salary will largely depend on how well you achieve. Furthermore, you are not expected to have significant salary advantages as an academic compared to trained specialists. This is shown by a study of what “finance.net” reported.

Researchers at the Tübingen Institute for Applied Economic Research (IAW) have studied how the incomes of academics and non-academics develop over their working lives. The results show that university graduates earn less than master craftsmen or technicians up to the age of 60. It is only from this age that they overtake the skilled workers, but only slightly .