Mis-sold my student loan!

theexo51

My apologies if this has been posted before, i have searched but not found anything.

Has anyone tried suing the SLC over mis-selling loans? Due to the level of my pay, even as a graduate, since the rise in interest rate i now pay back 50% of what my interest is per year..

This is surely completely backwards...how can they do this?

1jim

Im sorry, I dont really follow, why do you think you were mis-sold a loan? presumably you were aware of the terms of repayments before getting the money? I guess for help you probably need to explain a little about why you felt that you were missold the loan, with this someone may be better placed to help

kingmonkey

Did you not receive the copious amounts of leaflets, letters and forms the SLC sent to you every year?

theexo51

my belief that i was missold lies with the fact that as a young person just out of college, i was sold a loan without it being made clear that there was a danger of me never being able to pay it off.

last finanial year, paying 9% of everythign over 15k that i earned, i paid back £372 and was charged £634.

To now cover the cost of my interest i will need a £5k pay rise, or about 30% increase in salary. Surely the SLC should at least raise the minimum threshold to go with DOUBLING my payments

neas

You got a good degree yea?

It doesnt have an interest rate, it rises at the rate of inflation etc, so.... its worth the same amount as it was when you took it out... Just this thing called inflation.. items are getting more expensive per year.

So really you arent paying against the inflation rate. so yea...

Welcome to the real world... you dont get ought for nothing and the student loan was one of the cheapest loans possible..

Could you have done without the loan and completed the degree? You will prob get a better job because of it.

PinkGrapefruit_2

Sorry but I think wanting to sue is ridiculous. You would have been given all the details of the loan when you signed the agreement. I also have a student loan of about 16k, and yes its annoying I pay less than the interest, but the interest is just the inflation as someone above said. Plus you can opt to pay back more if you want so you don't really have an argument.

1jim

are the students loan company asking you to pay more or is it that you want to pay more so you dont keep adding to the debt?
as far as I can see/recall you dont have to pay the loan back if you dont ever reach the earnings threshold which must be 15k as you said you have to pay 9% on everything over this, this seems a pretty good deal but have you thought about increasing the amount you pay back, so if they want £372 (which to be fair is only £7 a week) could you not increase this, even increasing this a little bit would help with the interest

But
to be honest I really cant see that you have a claim for misselling, you wanted a loan, they offered you one (at quite reasonable rates), you should have read terms and conditions (including repayment terms) andthen signed (and spent the money) only when happy,

ziknik

My mate wrote to SLC. He said he doesn’t believe he took out the loans and asked for copies of the signed loan agreements. They could only produce 2/3 of the 5 he took out and cancelled 3/2 years of debt.

I haven’t tried it myself, it feels a bit cheeky.

Give it a go. You’ve got nothing to loose.

Nixxx

Wow, ziknik, i might have to try that.

I have to agree very slightly with the OP, as an 18 year old taking out a loan i don't believe it was made a clear as it could have been....or maybe i was just so excited to see the cash. 8 years later and i'm still trying to clear the loans.

Ps, without being pedantic...i believe the official measure of inflation is now the Conusmer price Index but the student loan is based on the RPI. (Not sure if i'm totally correct here so please correct me if i'm wrong). Now as of March 07 the RPI was 4.8% so we are paying that interest amount from september 07 to august o8. But if the measure the government chooses to measure inflation is the CPI which was 3.1%. Therefore we are paying more than we should.

I hope i've made sense here

regularsaver1

I don't think it was made that clear for me either, and the colleges were really promoting it

the interest rate was minimal then and its increasing by double since taking it, - saying that it is still lower than other loans out there, but will prob be payin it till i'm old (unless I pay more off)

but we i guess it was optional

JanCee

There is a very good article on the site that Martin has done. It is in the Loans section, under Student Loans - Should You Pay them off? It may put your mind at rest about interest rates etc.