Sunday, 27 March 2011

Student Debt or Self Employment?

I love my kids!

Twins. One boy, One Girl.

But its getting expensive. At 17+ they're both learning to drive. Car insurance is criminal. I could fund a coup in a small country for what that's costing us. Food lasts as long as it takes to unpack from Morrisons and cash has a whislestop in my wallet en route into thiers.

But we've got to make a serious decision now.

Just about to sit down to do our Census form ( a real family bonding moment!) and Number One Son suggests that if my two are about to decide thier futures at university, they will be paying for this for the rest of thier lives as they rack up student debt into obscene, 5 figure sums.

So we do the maths.


Daughter - 3 year Psychology Degree
Son- 7 Year Medical Degree
Total Studying Years = 10 years
Me & Mrs K - Joint Income (TBA)

Current Fees :  £9000 per annum
Excludes Subsistence (Accommodation, Food, other stuff so assume  (each) - £4k per annum


10 YEARS @£13000

= £130,000 !!!!!

Wow ! Could this be invested elsewhere? Could the kids leave school now, borrow this amount and start-up a new business?

If they were to become entrepreneurs now, in three years time they could have a solid income stream instead of the prospect of no jobs or  jobs with rubbish salaries in an industry they don't want to be in.

They could though, be adding to the economy by paying tax pounds into the Revenue, employing tax paying staff, skilling-up staff to make thier business and UKplc more competitive. They could realistically pay back thier loan.

Its a huge dilemma and one that provokes interesting debate. We'd support thier decision to do what they want to do and we definitely won't deny them that life-changing experience of going to Uni ..............but I think I know what I would do.

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