strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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I have recently found out my student loan interest has doubled, i received no letter to say this was the case and was wondering if this is actually possible? I thought notification would have been necessary
Will be looking through the T&C of my loan now but if anyone knows it could save me the hassle
If it has doubled and they are perfectly entitled to do so it is getting cleared, i'm not paying 4.8% for the next 20 years of my life
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Loan interest matches rate of inflation doesnt it?
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Cosmo
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Registered: 29th Mar 01
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http://www.slc.co.uk/statistics/facts%20and%20%20figures/previous_interest_rates.html
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Paul_J
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Registered: 6th Jun 02
Location: London
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yeh sucks 
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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The trouble is, when we took out the loans, they were like "oh, the interest is relevant to interest and is very minimal and they occasionally slipped in the words of the daily rate. Add all that up and it's a fair bit. £20/month if I remember rightly.
I'm not sure there will be any point in checking the T&C, they would have covered their backs.
The only thing to try and make you feel better, is 'every' student, every graduate is in exactly the same position.
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CorsAsh
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Registered: 19th Apr 02
Location: Munich
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This is another reason why people stereotyping students as sponging layabouts annoys me.
You have to financially cripple yourself in order to get to a position where you can earn a decent wage.
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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http://www.moneysavingexpert.com/loans/student-loans-repay
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by deano87
The only thing to try and make you feel better, is 'every' student, every graduate is in exactly the same position.
Not every graduate 
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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deano87
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Registered: 21st Oct 06
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quote:
Originally posted by Cosmo
http://www.moneysavingexpert.com/loans/student-loans-repay
I've heard this guy a lot on Radio 1, GMTV etc and when I read it, I hear his voice 
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jacko198
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Registered: 1st Mar 07
Location: Buckinghamshire
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quote:
Originally posted by CorsAsh
This is another reason why people stereotyping students as sponging layabouts annoys me.
You have to financially cripple yourself in order to get to a position where you can earn a decent wage.
Too right, my course fee's for JUST next year are £13,000 + arround £8,000 for a flat, then living costs, foor, transport, bills etc. It is a joke to be honest! How they expect a 19year old to pay that
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by deano87
quote:
Originally posted by Cosmo
http://www.moneysavingexpert.com/loans/student-loans-repay
I've heard this guy a lot on Radio 1, GMTV etc and when I read it, I hear his voice
You want to get that looked at.
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by jacko198
Too right, my course fee's for JUST next year are £13,000
What are you doing?! 
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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quote:
There are severe penalties if you don't tell the Student Loans Company, or chose not to repay by not providing them with information they request to be able to deduct repayments from your UK salary. These include tripling the normal rate of interest on your account, deducting repayments based on an income equal to twice the UK average earnings, and even demanding that you repay the total loan in one go…so beware!
But in all honesty, I read the Money Saving Expert link - there isn't much to worry about. The most important thing, it doesn't affect your credit rating and is based on earnings, so in theory, you won't be no more worse or better off. If you earn £16k/year, you pay £90/year. £17k debt may take a while
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Colin
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Registered: 4th Apr 02
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Ive got one, roughly owe 4500, right now its earning more in my ISA than its costing me so im in no hurry to pay it back!!
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Cosmo
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Registered: 29th Mar 01
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http://www.listentotaxman.com/
That has the ability to work out your monthly repayments for student loans depending on what you earn.
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deano87
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Registered: 21st Oct 06
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quote:
Originally posted by Cosmo
http://www.listentotaxman.com/
That has the ability to work out your monthly repayments for student loans depending on what you earn.
Yeah, that was accurate. Shoved in £20k and it takes £450/year. Not a huge amount imho. £8-ish/week. That's like 3 pints down the pub. I could and do live without that.
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by Cosmo
http://www.listentotaxman.com/
That has the ability to work out your monthly repayments for student loans depending on what you earn.
Next year I'll repay £37.50 a month but once im fully qualified i'll be handing back £225 a month. Bit of a sore one!
Good idea to take a student loan if you dont need one, like I done, though im starting to feel sorry for my class mates that pissed theirs up the wall of the local strip club
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Mine has gone on petrol and parking. Literally. Mine has gone back into the government and councils AND I'm paying back interest  kind of makes me angry.
imho, I don't think we should get taxed on earnings whilst a student.
Isn't there also the other issue that the government/SLC/tax office take the money from your earnings monthly BUT keep it in a seperate account until the end of the year, and then literally pay off your loan with what you paid in, whilst they've earnt interest!?
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Colin
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Registered: 4th Apr 02
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My earnings are tax free just now, I also get a few back handers from the Gvmt I wont go ingo detail about on here.
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by deano87
Isn't there also the other issue that the government/SLC/tax office take the money from your earnings monthly BUT keep it in a seperate account until the end of the year, and then literally pay off your loan with what you paid in, whilst they've earnt interest!?
Thats how they can offer the lower rates tbh.
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by Colin
My earnings are tax free just now, I also get a few back handers from the Gvmt I wont go ingo detail about on here.
You're a spy
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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quote:
Originally posted by Cosmo
quote:
Originally posted by deano87
Isn't there also the other issue that the government/SLC/tax office take the money from your earnings monthly BUT keep it in a seperate account until the end of the year, and then literally pay off your loan with what you paid in, whilst they've earnt interest!?
Thats how they can offer the lower rates tbh.
I know - and at the end of the day, they are essentially 'running a business'. It's like people on here don't grasp that insurance companies aren't your friend, and if they find a reason not to pay out, the won't.
But yeah, I don't get hyped up about my student loan.
1) Cheapest form of borrowing
2) Paid back relative to earnings, directly out of wage, so you should never struggle
3) We all knew we'd pay it back
4) Most importantly, it doesn't affect your credit rating/score.
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by Cosmo
quote:
Originally posted by Colin
My earnings are tax free just now, I also get a few back handers from the Gvmt I wont go ingo detail about on here.
You're a spy
Nah but alot of people would think im a bastard for what I get away with!!
All legal btw just appears to be a bit sly.
[Edited on 22-05-2008 by Colin]
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James_DT
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Registered: 9th Apr 04
Location: Cambridgeshire
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On a £15,000 debt, doesn't that make the interest £60 per month. You don't pay off £60 per month until you're on £23,000 a year. So you have to earn £23,000 just to pay off the interest.
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