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    • Peroxidation
    • By Peroxidation 15th Jun 17, 10:58 PM
    • 6 Posts
    • 0 Thanks
    Peroxidation
    Hello
    Are there any active Student Finance advisors around who have experience of the compelling personal reasons procedure. I would be very grateful for some advice as I am having serious difficulty getting any advice from the the standard advisors.

    Thank you
    • lizziegrace81
    • By lizziegrace81 19th Jun 17, 11:27 AM
    • 1 Posts
    • 0 Thanks
    lizziegrace81
    Hi, I had a full Student loan in 1999 for a 3 year degree equating to roughly £10k in borrowing. I have been in touch with the SLC today for an update as, due to address changes, I've not heard anything for a while. I have been told I now owe over £11k! More than originally! How can that be?! I don't understand how my interest could have accrued to take me over what I borrowed initially.

    I started full-time employment in 2004 earning enough to make payments and although I have been on maternity leave recently I would have thought my balance would have decreased in that time?! I am currently paying £90 a month.

    Would I have been paying interest still whilst on maternity leave? I think it is disgusting. As a student I was not made aware of the consequences of this loan. That may sound pathetic but it was billed to me as an interest free loan. Nobody at any point mentioned this would change after my course had ended.

    Any help greatly appreciated.
    • Ed-1
    • By Ed-1 19th Jun 17, 1:32 PM
    • 2,033 Posts
    • 1,094 Thanks
    Ed-1
    Hi, I had a full Student loan in 1999 for a 3 year degree equating to roughly £10k in borrowing. I have been in touch with the SLC today for an update as, due to address changes, I've not heard anything for a while. I have been told I now owe over £11k! More than originally! How can that be?! I don't understand how my interest could have accrued to take me over what I borrowed initially.

    I started full-time employment in 2004 earning enough to make payments and although I have been on maternity leave recently I would have thought my balance would have decreased in that time?! I am currently paying £90 a month.

    Would I have been paying interest still whilst on maternity leave? I think it is disgusting. As a student I was not made aware of the consequences of this loan. That may sound pathetic but it was billed to me as an interest free loan. Nobody at any point mentioned this would change after my course had ended.

    Any help greatly appreciated.
    Originally posted by lizziegrace81
    It's the best loan you'll ever get as there's no obligation to pay it back. The only obligation is to make a contribution of 9% of your income over the repayment threshold which is currently £17,775 and increases every April by inflation.

    When you signed the loan agreement, you were confirming you'd read and understood all this.

    The loan is interest free in real terms. That is, interest is only applied at the rate of inflation to maintain the loan's value in real terms and it accrues from the day you get it paid to you. However, since 2009, the Bank of England base rate has been below inflation so the loan has actually been reducing in value as the interest rate on pre-2012 loans is the lower of inflation (RPI) or the Bank of England base rate (0.25%) plus 1%. So with inflation being higher than the interest applied, inflation has been eroding its value.

    If you borrowed £10,000 in 1999 and it's still £10,000 in 2017 then it's worth a heck of a lot less now than it was then. The average wage back then would've been not much more than £10,000. Now it's £26,500.

    But that doesn't change the fact that it's written off at age 65 for you anyhow. So just see it as an extra bit of tax out of your income, not something you need to be worried about paying back.
    • Savvy_Sue
    • By Savvy_Sue 20th Jun 17, 12:56 AM
    • 37,823 Posts
    • 34,216 Thanks
    Savvy_Sue
    Just to add to what Ed said, and to pick up on these bits:
    I don't understand how my interest could have accrued to take me over what I borrowed initially.
    Originally posted by lizziegrace81
    Would I have been paying interest still whilst on maternity leave? I think it is disgusting. As a student I was not made aware of the consequences of this loan. That may sound pathetic but it was billed to me as an interest free loan. Nobody at any point mentioned this would change after my course had ended.
    Originally posted by lizziegrace81
    Hate to break it to you, but you started to accrue interest on this loan on the day you took it out, so each year throughout your degree the total you owed was increasing, so that you always owed more than you'd originally borrowed. Nothing changed after your course ended.
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 2 shawls, 3 pairs baby bootees,
    1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 1 seaman's hat ...
    Current projects: 1 shawl, another seaman's hat
    • tiredwithtwins
    • By tiredwithtwins 9th Jul 17, 12:25 PM
    • 403 Posts
    • 1,134 Thanks
    tiredwithtwins
    hi everyone,
    just after some advice as im concerned im going to overpay the final balance in the next couple of months.
    I checked the slc this morning to check my balance, and last years contributions still haven't come off my account .. as im down to the last £125ish, im worried my employer (the NHS) is going to carry on making deductions when the balance is actually cleared. When I spoke to payroll they said they receive communication from the slc when to stop taking the deduction, but as the loan balance doesn't seem to be updated until the end of august every year I don't want to carry on making payments and end up having the palaver of reclaiming (plus im a broke single parent, I cant afford it!!). I rang the slc a few years ago as I disputed the balance, and they say they don't update the balance until they receive communication from the employers!!
    can anyone shed any light on what happens?
    thank you!!! Sue
    October grocery challenge - 186/200
    nsd oct = 4!
    nov grocery challenge - 42/200
    nsd nov = 6
    • gatters
    • By gatters 12th Jul 17, 1:11 PM
    • 10 Posts
    • 5 Thanks
    gatters
    Sue,

    If complete repayment is imminent, you'll need to phone SLC and perhaps manually inform them of your repayments made since their records were last updated.

    SLC should then issue a stop notice to your employer, and you can pay the remaining balance either by a direct debit or a one off payment.

    Good luck, it's a bit of a faff and check your payslips carefully as it took me months to stop repayment. I believe there's around £40m a year overpayments taken in error.
    • lcc86
    • By lcc86 24th Jul 17, 2:18 PM
    • 903 Posts
    • 2,380 Thanks
    lcc86
    Hi,


    Not sure if this is the right place to ask questions about postgrad student loans? If not, just let me know and I'll repost in a new thread:


    I am due to begin my MA with the OU in October and am going to apply for a postgrad student loan. The course is made up of 2 modules, I wanted to study one module in 2017/18, then take a break and begin the second module in 2019/20. Does anybody know if this is possible and how it works in terms of the student loan?


    This is the second time I've attempted masters-level study. The first time I was part-way through my first module (different course) when I had to drop out due to personal reasons. I funded that myself so there were no implications, but this is part of the reason why I want to take a break in between modules if possible. However, just playing devils' advocate, what would happen if, for example, I complete the first module and then don't go on to study the second for whatever reason? This is not my intention, but I've never had a student loan before and wanted to find out what tends to happen in this sort of scenario.
    1/12/14 total £9,140 DFD 30/01/17
    http://forums.moneysavingexpert.com/showthread.php?t=5124473 - my original DFD

    25/08/17 new total £802 back in debt but determined clear it by February 2018! 17/11/17 - £110 2017 365 day challenge £597 saved for emergency fund
    • Craftysue
    • By Craftysue 1st Sep 17, 11:28 AM
    • 2 Posts
    • 1 Thanks
    Craftysue
    Student finance want prove that i'm separated from my husband. I can't use council tax bill as i have my 22 year old student son living with me.
    • silvercar
    • By silvercar 1st Sep 17, 1:00 PM
    • 36,047 Posts
    • 152,260 Thanks
    silvercar
    Student finance want prove that i'm separated from my husband. I can't use council tax bill as i have my 22 year old student son living with me.
    Originally posted by Craftysue
    Does your husband have council tax proof that he is living elsewhere?
    • agrinnall
    • By agrinnall 1st Sep 17, 1:26 PM
    • 18,543 Posts
    • 14,271 Thanks
    agrinnall
    Student finance want prove that i'm separated from my husband. I can't use council tax bill as i have my 22 year old student son living with me.
    Originally posted by Craftysue
    What proof have they said they will accept?
    • Fruity1
    • By Fruity1 4th Oct 17, 10:07 PM
    • 913 Posts
    • 1,301 Thanks
    Fruity1
    Student finance blocked, help please.
    Hi, not been on MSE in ages so apologies if I'm in the wrong place. My daughter applied for student finance for tuition and also maintenance. She was accepted for both based on doing a foundation year then 3 year degree- I believe. She got better grades than expected so changed the course to a straight 3 year degree. She contacted student finance who sent a new form which was duly completed and returned. Off she went to uni 3 weeks ago. Has a text advising information was received. Spoke to student finance who initially told her it would be sorted by September 27th then by tomorrow and now it's showing as finance blocked. She has received first instalment of maintenance so can afford her halls rent. Does anyone have a number where we can speak to someone who will be helpful asap. As you can imagine I have a very distressed daughter hours from home.
    • Savvy_Sue
    • By Savvy_Sue 5th Oct 17, 6:34 PM
    • 37,823 Posts
    • 34,216 Thanks
    Savvy_Sue
    Has a text advising information was received. Spoke to student finance who initially told her it would be sorted by September 27th then by tomorrow and now it's showing as finance blocked. She has received first instalment of maintenance so can afford her halls rent. Does anyone have a number where we can speak to someone who will be helpful asap. As you can imagine I have a very distressed daughter hours from home.
    Originally posted by Fruity1
    I'd strongly suggest she gets herself over to whatever student support services are available where she is. These are likely to include the Students Union and something within the Registry. They will be used to this sort of situation (both in terms of student finance problems and very upset students far from home), and will have the contact details your DD needs.
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 2 shawls, 3 pairs baby bootees,
    1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 1 seaman's hat ...
    Current projects: 1 shawl, another seaman's hat
    • greenbrucelee
    • By greenbrucelee 12th Oct 17, 9:13 PM
    • 296 Posts
    • 66 Thanks
    greenbrucelee
    Student loan question
    Sorry I believe I may have posted in the wrong section so am posting my query again. Sorry if this is the wrong thing to do.

    I had student loans in 96,97,98 I have never made any repayments and it is very unlikely I will ever earn the amount stated in the deferment letters.

    Will my loans be written off when I am 50? (I am now 40)
    • cornishqueenie
    • By cornishqueenie 14th Oct 17, 2:28 PM
    • 4 Posts
    • 0 Thanks
    cornishqueenie
    Household Income Student Loan
    Hi
    My daughter will be applying for a student loan for 2017-2018. Her twin brother is in full-time employment and lives at home. Do we count his income in household income?
    Also my husband and I both work full-time, we also run a smallholding part-time. This is losing money at the moment so we received a refund of tax back. How does this affect the total household income?
    TIA
    • _shel
    • By _shel 15th Oct 17, 8:02 AM
    • 1,078 Posts
    • 1,838 Thanks
    _shel
    You do not count siblings income and I’m sure a tax refund isn’t income. If you file taxes you need to be giving that figure and earnt parental income.
    Thanks to everyone who posts competitions
    • Hele_an
    • By Hele_an 24th Oct 17, 4:09 PM
    • 104 Posts
    • 621 Thanks
    Hele_an
    Hi

    I've been informed that I will finish paying my Type 1 Student Loan back within the next two years and SLC has said it would be better to switch to a direct debit payment instead on through my employer.

    I totally understand this, however, through my employer my loan is paid back before tax - reducing my tax bill - when I switch to direct debit I will be paying after tax - meaning a bigger tax bill and less money in my pocket. Am I correct in thinking this? Is there any other way to combat this extra loss of money? I currently lay back around £100 a month and have a balance of around £2600. I could settle the account but would rather not especially as the rate is so good currently.

    Thanks in advance!
    • silvercar
    • By silvercar 24th Oct 17, 5:19 PM
    • 36,047 Posts
    • 152,260 Thanks
    silvercar
    Hi

    I've been informed that I will finish paying my Type 1 Student Loan back within the next two years and SLC has said it would be better to switch to a direct debit payment instead on through my employer.

    I totally understand this, however, through my employer my loan is paid back before tax - reducing my tax bill - when I switch to direct debit I will be paying after tax - meaning a bigger tax bill and less money in my pocket. Am I correct in thinking this? Is there any other way to combat this extra loss of money? I currently lay back around £100 a month and have a balance of around £2600. I could settle the account but would rather not especially as the rate is so good currently.

    Thanks in advance!
    Originally posted by Hele_an
    That isn't true. You pay the same whether through your payroll or by direct debit.
    • badmemory
    • By badmemory 25th Oct 17, 2:00 AM
    • 950 Posts
    • 983 Thanks
    badmemory
    The advantage of paying the last year or so by direct debit is that you will not overpay & need to reclaim that overpayment. That is the reason it is recommended.
    • Lokolo
    • By Lokolo 25th Oct 17, 11:37 AM
    • 19,813 Posts
    • 14,865 Thanks
    Lokolo
    That isn't true. You pay the same whether through your payroll or by direct debit.
    Originally posted by silvercar
    Just to expand on this.

    Student Loan is calculated from gross, but paid from net. Therefore there are no tax advantages to pay via PAYE.
    • Papps
    • By Papps 26th Oct 17, 2:21 PM
    • 3 Posts
    • 0 Thanks
    Papps
    Should I pay debts or student loan
    Hi
    I wish to understand if I should pay my student loan off or my debts off with some money I have managed to save recently.

    I have the following student loans, which is over £4000 in interest since 1997. The total now is £8,318.83. (1997 £3,392.65, 1997 £3,364.93 & 1999 £1,561.25).

    I have also contacted Erudio to ask when my debt will be written off should I not pay before that time.

    The debts I have are interest free and being managed by debt management companies. For these debts I have been paying a minimum amount each month for nearly 15 years or so. This of course effects my credit.

    With the student loan I would like to avoid paying the monthly amounts (of approximately £150 each month) when I am at the threshold (I am just under that at the moment) just to free up some money and possibly save again. I also know the repercussions for not paying the student loan are great should I miss a payment, etc?

    With my savings I am hoping to pay off either the student loan in full or my other debts (with partial settlement figures). Could you please advise me of what is the best thing to do here...should I also consider saving still?
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