Student Loans

[barry_manc]

Evil bashstards, I'll be paying this shoite off till I'm in my 60's.

Apparently, once you earn £15k they take £50 a month but add £45 a month interest. The higher you earn the higher the interest. Is there any truth in this?

Also, my boss has asked me (as I have an imminent salary review) what the steps are for payments per month in accordance to what you earn.... Any more ideas?

Scary shtuff, think I owe a good 20k, plus interest, it could well go up to 30-35k!!!

CONTS!

[robins72]

The bank I work for do a loan for graduates at about 7 percente for the 3 years after graduation.The overdraft is interest free and I think that they can have that as a seperate loan aside the other one as the amount you can borrow goes down by £500 each year. Tis a stinker for students having debt after studies. Alot have to have one or two part time jobs to account for debts after studies. don't know if that helps at all.

[Stoke_Gifford_Red]

I am about to become a student (hopefully) and a thing that annoys me is the fact that in Wales/Scotland students get less debt. Also the fact that I know of people who wanted to do quite useful degrees (eg chemistry, engineering) and yet have decided not to due to cost. If this is the case countrywide it could have severe affects on the country and it's economy. It is also key to note that whilst in the UK the government is giving fewer grants out, in most other countries in the world this figure is actually increasing.

[grifty]

there isnt any interest on the student loan

if you've got interest you've been had mate

[barry_manc]

there isnt any interest on the student loan

if you've got interest you've been had mate

Once you gradute they whack it on, £45 a month mate and they're not allowed to take more than £50 a month

[Johnny Casio]

I'm starting uni in september - have been info on how much i'll be recieving, it is going to take a while to pay off but as far as I am aware the loan is interest free.

When applying for the loan you should have been advised to do it through 'studentfinancedirect' - when they have come to school and given talks they have clearly stated that once you are earning over 15k you can pay as little as £5 per week....

Where did you get the info saying they'll charge interest? its not an easy topic to get your head round when everyone has interpreted the situation in different ways.

[zookeeper]

Once you gradute they whack it on, £45 a month mate and they're not allowed to take more than £50 a month

You can pay them more than the £50 per month. I think they take 9% of your earnings after the £15,000 threshold but you can transfer money to them if you want to pay it off quicker.

Student Finance Info but no % rates???!!

I had a quick look but couldn't find out any % rates for interest but I'm pretty sure that there will be some even if it is to keep in line with inflation.

Also they may well be taking 90% of your repayments. If your loan is £20,000 and the interest rate is 2.5% then the interest alone would be £500 and you will only be paying £600 from your £50 a month.

I don't think many people really understand the financial implications of going to uni. I was a lucky un and have no loan to repay but people need to be told the financial implications of these loans. I failed to find an explanation of repayments etc that simplified things and described the timescale for repayments.

Geek mode off

[mozo]

You can pay them more than the £50 per month. I think they take 9% of your earnings after the £15,000 threshold but you can transfer money to them if you want to pay it off quicker.

Yep, they've adjusted it from 10% of your earnings after a £10,000 threshold so it's actually less demanding than before. Either way you don't pay much a year unless you're earning a hefty wedge, in which case you wouldn't miss it. I dunno about the interest though.

[deadratinmycider]

Evil bashstards, I'll be paying this shoite off till I'm in my 60's.

Apparently, once you earn £15k they take £50 a month but add £45 a month interest. The higher you earn the higher the interest. Is there any truth in this?

Also, my boss has asked me (as I have an imminent salary review) what the steps are for payments per month in accordance to what you earn.... Any more ideas?

Scary shtuff, think I owe a good 20k, plus interest, it could well go up to 30-35k!!!

CONTS!

Here you go mate

Student Loans

Click on the link and select the deduction for employers booklet and it tells you how much you will pay per month based on your gross earnings.

[barry_manc]

I'm starting uni in september - have been info on how much i'll be recieving, it is going to take a while to pay off but as far as I am aware the loan is interest free.

When applying for the loan you should have been advised to do it through 'studentfinancedirect' - when they have come to school and given talks they have clearly stated that once you are earning over 15k you can pay as little as £5 per week....

Where did you get the info saying they'll charge interest? its not an easy topic to get your head round when everyone has interpreted the situation in different ways.

The info I saw where it says that they'll start charging interest was in a the letter from them. Only when you're still a student do they not charge interest after you graduate they do.

Here you go mate

Student Loans

Click on the link and select the deduction for employers booklet and it tells you how much you will pay per month based on your gross earnings.

Sweet cheers mate saved me some arseholing around there

[gazareth]

I think the interest is just charged at the Bank of England's base rate...

[Sir Colby-Tit]

Bloody tax-dodgers. Get a job. When I was at college I walked 15 miles in bare feet to my part time job scrubbing barnacles of boats down the docks. I started at 3 am, finished by 7 & still got to college on time. Earned my own dosh & never borrowed nowt off anyone.

Also, we studied proper subjects like Latin, History & How To Keep A Stiff Upper Lip. None of this "Celebrity Studies" or "A-Level in How to Sponge off the State"

Bring back National Service, that's what I say.

[zookeeper]

Here you go mate

Student Loans

Click on the link and select the deduction for employers booklet and it tells you how much you will pay per month based on your gross earnings.

I was looking for something like that last night but it still doesn't show how they calculate the interest and when it starts each other.

It's not nearly transparent enough really is it?

[nickD]

i havent read a few of the replies in this thread, so apologies if i'm going over things already said.

yep i too have found all this out recently. ###### student loans companies.

They actually started charging you interest right from the start of the loan. If you checked your end of year statements issued to you in April each year you were receiving it, it will show the addition.

i've been getting done for £30 interest per month. my basic rate of repayment as decided by the government is £40 - so i'm paying £10 a month off the £15k i owe - and the rest goes on interest.

it happens though, and its also a lot cheaper than any other loan we'll ever get in our lives. Plus the student loan does not count as a loan and therefore cannot go down as a black mark on your credit file etc.

Also - if you wait until you're 55, whatever you have remaining outstanding owed will automatically get wiped

OR you could go and teach for 2 years, and get it all wiped anyway. which is what a lot of my uni friends are doing right now.

[gazareth]

The interest is only the base rate as set by the Bank of England. At the moment that's 4.5%.

[zookeeper]

The interest is only the base rate as set by the Bank of England. At the moment that's 4.5%.

Only 4.5%??

That's probably less than most banks offer for interest.

If the interest starts as soon as the loan is given and you borrow £5000 a year after the course finishes the interest will have cost you £1390. If it takes another year to get yourself in a job paying £15,000+ then that goes to £2128 interest gained to date.

Start paying that off at £50 per month and the net effect is that you will owe the loans company an extra £14 per month. In effect you need to pay at least £64 to pay off your monthly interest.

Also I recently recieved my pay rise in line with inflation which was 2.5% so in real terms we pay a 2% interest rate.

That's not a good place to be in my eyes.

[barry_manc]

Only 4.5%??

That's probably less than most banks offer for interest.

If the interest starts as soon as the loan is given and you borrow £5000 a year after the course finishes the interest will have cost you £1390. If it takes another year to get yourself in a job paying £15,000+ then that goes to £2128 interest gained to date.

Start paying that off at £50 per month and the net effect is that you will owe the loans company an extra £14 per month. In effect you need to pay at least £64 to pay off your monthly interest.

Also I recently recieved my pay rise in line with inflation which was 2.5% so in real terms we pay a 2% interest rate.

That's not a good place to be in my eyes.

With your pay rise did you also have to pay extra for the monthly loan repayments?

[Spud55]

Evil bashstards, I'll be paying this shoite off till I'm in my 60's.

Apparently, once you earn £15k they take £50 a month but add £45 a month interest. The higher you earn the higher the interest. Is there any truth in this?

Also, my boss has asked me (as I have an imminent salary review) what the steps are for payments per month in accordance to what you earn.... Any more ideas?

Scary shtuff, think I owe a good 20k, plus interest, it could well go up to 30-35k!!!

CONTS!

Somebody has been feeding you a load of old cobblers there.

to be paying back 50 quid a month you would need to be on 22k per year,

at 16k it's 7 pound per month,

17k = 15

18k = 22

19k = 30

20k = 37

21k = 45

22k = 52

23k = 60

24k = 67

25k = 75.

Interest is part paid by the Govt, so all you pay is intrest at a compund rate of that of inflation, so in relative terms you pay back what you borrowed, but depending on inflation it may mean that the 12k or whatever you borrowed in by the time you pay it off actually worth about 18k, if you get what i mean.

[Stoke_Gifford_Red]

I'm starting uni in september - have been info on how much i'll be recieving, it is going to take a while to pay off but as far as I am aware the loan is interest free.

When applying for the loan you should have been advised to do it through 'studentfinancedirect' - when they have come to school and given talks they have clearly stated that once you are earning over 15k you can pay as little as £5 per week....

Where did you get the info saying they'll charge interest? its not an easy topic to get your head round when everyone has interpreted the situation in different ways.

For new students (those starting this September who have to pay additional top-up fees) the interest is not even the base rate, it is instead pegged to inflation, so as long as the economy doesn't go the way of Zimbabwe you are fine. I know of one mate who suggested he would get the maximum loan he can and put it in a ISA etc, as he will still make money as ISA rates are higher than the rate of inflation.

[PhatWill]

Yeh I have £10k student loan debt and am currently paying £25+ interest a month...it is a ****er and they don't make it very clear when you take these loans out that they'll be piling on so much interest!

As for paying it back, I'm pretty sure you can alternate how much of it you pay off per month and also you can send the loans company lump sums via cheque/debit.

This is what I shall be doing to pay off the loan as quickly as possible - hopefully within 10 years, salary dependent

[barry_manc]

Just did this student loan calculator thingy and it's worked out that to pay off my loan I'll have to pay £8 a month for 300 months