Student Loans: Architects, Design your way out.
Student debt has become a serious financial challenge for many recent graduates in the UK. A quick search reveals that, as of 2023/2024, total student loan debt in the UK has surpassed ￡236 billion, with almost half of graduates leaving university with over ￡30,000 in debt—and these figures are climbing rapidly.
For many, student loans are more than just a financial obligation; they can disrupt financial stability and push back key life milestones. High monthly repayments—often tied to income levels or overseas adjustments—can make it harder to save for a home, invest for the future, grow a family, or even pursue career paths that feel meaningful.
( For the latest on this topic, check out the report : Student Loans in England: Financial Year 2023-24 - GOV.UK )
When I applied for my student loans, it was a decision I made only after long discussions with my family. I had my sights set on studying in London, with specific universities and architecture programs in mind. Looking back, I didn’t fully grasp the financial implications of my choice ( we are talking 15 years ago), but I was ready to take on the responsibility. After all, I was going to be an architect - I'd pay it off in no time, right?
Studying in London was expensive, and it wasn’t just about tuition. Back then, I didn’t worry much about the long-term cost; it felt like an “out of sight, out of mind” situation that I’d address later. My immediate concerns were the rent due each month, weekly groceries and the growing costs of preparing my portfolio. So, I focused on these day-to-day expenses, pushing the bigger financial picture aside.
For years, I made only the minimum payments based on my salary. I didn’t think about the accumulating interest, didn’t check my total balance, and didn’t plan or budget. But one day, I saw that my interest rate had jumped from 1.1% to 6.25%. Suddenly, my monthly payments weren’t even enough to keep up with the interest. My balance was growing faster than I could pay it down, and my payments barely seemed to make a dent.
That was my wake-up call. I created a budget, tracked exactly how much I owed, how much the debt was growing, and how much I was paying each month. Anytime I found a way to save or earn a little extra, I put it straight toward an additional payment. Following this simple plan, I cleared my student loans in just three years.
Each month, I set aside income following a basic structure: about 10% of my salary went to savings, 10-20% toward student loan repayment (depending on what I could spare), 40% for rent and utilities, and 30% for transport and groceries. This approach wasn’t rigid—these proportions shifted over the years as my priorities and financial stability changed—but it kept me grounded and focused on paying down my loan as quickly as possible.
This method wasn’t always easy, and it certainly wasn’t a straight path, but it worked.
I should also note that I had one advantage: my fees were set on Plan 1, before the newer, much higher tuition rates. I’m fully aware that for recent graduates, the financial load is even heavier. That’s why, if you’re starting out, I’d encourage you to take action as early as possible—the sooner you start chipping away at your balance, the closer you’ll be to a debt-free future.
If you’ll indulge me, I have a few lessons, tips, and tricks that might help:
Before Applying for Your Student Loan:
Do Your Research.
Before committing to any loan, consider how much you’re signing your future self up to repay. Ask yourself: does it have to be that specific university, city, or even country? If studying abroad is an option, look into countries with lower fees or even free education as potential alternatives to your original plans.
Explore Alternatives.
Think about alternative pathways to certification beyond the traditional university route. Architectural apprenticeships, for example, allow you to earn a salary and gain experience while you’re working toward your credentials—a true two-for-one! And yes, you can still earn the RIBA / ARB certification this way.
Understand University and Living Costs—and Industry Salaries.
University fees are one part of the picture, but living expenses can be just as significant, especially with architecture, where materials for portfolios, printing, modeling, and software all add up quickly. Before diving into the world of architecture, take time to research expected salaries in our industry, especially entry-level wages, which can often be lower than search engines suggest (and sometimes, frankly, a bit disappointing).
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Use websites like ArchJobs , RIBA , Glassdoor , and Indeed and many more to get a clearer idea, and reach out to industry professionals and recruiters on LinkedIn who can give you insights into real-world expectations. A well-placed question today can save you years of debt down the road. Just make sure you research the correct industry! We all have fallen at least once for the glamourous IT salaries advertised.
Once You Start Paying Back Your Student Loan:
Set Up a Monthly Budget and Track Your Debt
I really wish I’d done this right after university. A monthly budget gives you a clear picture of where your money’s going and keeps you focused, not only on paying off debt but on managing your overall finances. It’s a great way to kickstart saving and investing, and helps you build an emergency fund so you’re prepared for unexpected expenses while keeping up with loan payments. You can set milestones, and whenever you have a little extra at the end of a week, month, or year, consider making an extra repayment—it really adds up!
Keep an Eye on Your Interest Rate
Student loan interest rates can change, sometimes drastically, and it’s essential to stay on top of these adjustments. Many factors affect your rate, including:
Aim to Pay More Than the Minimum
Only making minimum payments? Your balance may still grow. Interest often adds up faster than your payments can cover, especially early on. Without a big salary boost, your debt might not shrink much—or could even increase! For many, student loans are a long-term commitment, with forgiveness only happening after 30 years. This debt can impact your financial flexibility and big life decisions, like moving abroad or starting a family.
Yes, you might hear the classic 'Don’t worry, it’ll go away eventually', but if you run the numbers, you will see the cost of delaying payments. That delay could mean paying thousands more in the end—without the perks of an extra degree!
Consider Refinancing
In some cases, taking out a lower-interest bank loan (say, at 4%) to pay off a higher-interest student loan (like 7%) can be worthwhile. This wasn’t an option I looked into, but it could’ve saved me a fair amount. If you go this route, though, be cautious—check the fine print carefully!
Alright, let’s wrap this up.
Student loans can create incredible opportunities that might not be available otherwise. They can be a valuable investment in your future, but it’s essential to stay informed.
Taking control of your loan repayments early on can make a significant difference down the line. Remember, it’s not just about managing debt; it’s about setting yourself up for a secure financial future. With the right approach, you can make the most of your education without getting overwhelmed by debt.
Here’s to building a brighter future!
Iza Iacinschi
Architect, and Newly Debt-Free Individual