Student Loans and the Debt Spiral: Real Stories and Smart Alternatives
University used to feel like the obvious next step. Study hard, get a degree, land a good job, build a secure future.
These days, many parents are quietly wondering if that promise still holds up.
With tuition fees high, living costs rising, and graduates often leaving with debts above £50,000, student loans now shape far more than just the first job someone gets. They can influence when young adults buy homes, how quickly they save, and even the careers they feel able to pursue. Some degrees still open brilliant doors. Others make families question whether the price tag was really worth it.
So let’s talk honestly about what is going on.
Some degrees pay off strongly, while others leave graduates struggling to justify the price.
How Student Loans Work in the UK (In Plain English)
In England and Wales, student loans usually cover two things:
• Tuition fees, which go straight to the university
• Living costs, like rent and food
You only start repaying once you earn above a certain amount. For many recent students that sits around £28,470 a year. When that happens, 9 percent of anything earned above that level comes out of your pay automatically. If earnings dip below the threshold, repayments stop.
After decades, any remaining balance is wiped.
Government guide:
https://www.gov.uk/repaying-your-student-loan/when-you-start-repaying
Interest starts building from the moment the loan is taken out, and it usually rises with inflation.
https://educationhub.blog.gov.uk/2023/08/how-are-student-loans-changing-everything-you-need-to-know/
When the Debt Just Will Not Shrink
What surprises many graduates is that even when they are making repayments, their total balance does not always go down.
The Guardian has shared stories of NHS workers and other graduates who paid thousands over the years but watched their debt grow because the interest being added each month was higher than what they were paying back.
https://www.theguardian.com/money/2026/jan/23/student-loans-graduates-plan-2-interest-rates
There are also reports showing that more than 150,000 people in the UK now owe over £100,000 in student loans.
https://www.theguardian.com/money/2025/sep/27/uk-graduates-student-loan-debt-sentences
No wonder some young adults feel like they are running just to stand still.
Why So Many Graduates Feel Stuck
A few things combine to create that trapped feeling.
Interest keeps building even while repayments are being made.
Graduate salaries in some fields are not high enough to chip away at the balance.
Repayment terms stretch on for decades, which can feel overwhelming when you are in your twenties or thirties.
For some people, this quietly shapes life decisions. They might put off buying a home, hesitate to change careers, or delay starting a family simply because their take-home pay is lower each month.
What Patrick Bet-David Often Says About Degree Choices
Entrepreneur and author Patrick Bet-David regularly encourages families to slow down and think carefully before borrowing heavily for a degree that does not clearly link to future work.
In his book 10 Things I Wish I Knew When I Graduated High School, he talks about subjects like fine arts or philosophy as examples of courses that can be risky financially unless students have a strong plan for what comes next.
https://www.patrickbetdavid.com/10-things-wish-knew-graduated-high-school/
His message is not anti-education. It is more about being intentional. University should be a considered choice, not something young people drift into because everyone else is doing it.
Smarter Ways to Avoid a Debt Spiral
University is not the only road to a good life. More families are now exploring different routes that build skills without huge borrowing.
Earn While You Learn
Apprenticeships and vocational options let young people train and get paid at the same time.
Work During Study
Part-time jobs can cut down how much students need to borrow and help them learn money habits early.
Look at Career Outcomes
Before choosing a course, it helps to check:
• what graduates usually go on to do
• typical salaries
• whether there are cheaper routes into the same career
Short Courses and Bootcamps
Some industries value practical training programmes that last months rather than years.
Be Smart With Spare Cash
If there is extra money around, many advisers suggest focusing on:
• building savings
• creating a house deposit
• paying off higher-interest debts
• setting up an emergency fund
Extra payments toward student loans only make sense for some people, especially high earners who expect to clear the balance early.
What This Means for Parents
Student loans in the UK are unusual. They depend on income and can hang around for decades, which is why families benefit from understanding them before any forms are signed.
Parents can really help by:
• talking openly about money and careers
• comparing courses by job outcomes
• exploring apprenticeships
• teaching budgeting and long-term thinking
Final Thoughts
University can still be life-changing. But it is no longer a guaranteed financial win.
When families take time to understand how the system works, learn from real stories, and explore alternatives, young people can make choices that feel confident rather than rushed.
