Mis-sold my student loan!

tinkerbell84

mizzbiz wrote: »

I don't think you can sue for misselling but I think you should be able to.

How many 18yr old school leavers supposed to be able to understand compound interest. I'm furious that i'm paying interest on the interest on my student loan, I certainly didn't undertsand this and the 'salesperson' never pointed it out to me.

At 18 you could have saddled yourself with loans and credit cards and been in a far worse position.

GCSE maths covers compound interest, so even 16 year olds should understand it :rolleyes:

mrposhman

mizzbiz wrote: »

I also don't agree that student loans should fund the next generation of students.

Prior to 1996 and the absolutely abhorrable Blair, University was paid for by taxes. Now I wouldn't complain if i'd had a tax reduction when student loans came in since it was no longer funding this, however I didn't. The extra money has been spent elsewhere. So much for free education.

No one is trying to get out of what they owe, the problem is it's a ball and chain and ultimately, just a never ending extra 'Graduate Tax' Absolutely disgusting!

What a shortsighted and ignorant post.

Where do you think the capital came from to make the first student loan payments?? Do you seriously think that the net payments from the SLC at the moment need no topping up from the government? Think about it like this, I paid by about £1400 with a half decent job in the last year. Some new graduate has come in and talen nearly £4k this year. As the number of graduates increases I doubt that all of our student loan payments amount to the capital paid out to new students this year.

To those who wish to sue (stupid ones), how else would you have funded your degree??

- A much more expensive loan??
- A loan from daddy??
- Overdrafts (oh I did that too)
- A job??

sdooley

I have been very lucky with a good job increasing to over £40K, under the first incarnation of the new system I got a loan to cover the £1K fees and living expenses. Even so it has taken me five years to pay off the loan.

I think a lot of people, especially now fees and therefore debts are higher, will only be obliged to pay quite small instalments for twenty years then have the capital of their loans written off. Because in these situations its written off after twenty years I can't agree with people who say you should pay the loan off early.

The system has not produced tax cuts because the expansion of funding from student loans has allowed for improvements to the quality of education (especially at Oxbridge and the Russell Group) and the quantity (with all classes of university increasing places). The costs borne by the student are still lower than half the real cost of the degree, if you take international or private comparisons .

mrcow

mizzbiz wrote: »

How many 18yr old school leavers supposed to be able to understand compound interest.

All of them I would sincerely hope!

Idiophreak

mizzbiz wrote: »

I don't think you can sue for misselling but I think you should be able to.

How many 18yr old school leavers supposed to be able to understand compound interest. I'm furious that i'm paying interest on the interest on my student loan, I certainly didn't undertsand this and the 'salesperson' never pointed it out to me.

I really cant decide if this post is supposed to be sarcastic or not.

Please lord, let it be...(although, from the post below, I'm rather afraid it isn't...)

Idiophreak

Also, for what it's worth, I don't see the point in getting all precise and pedantic over RPI, CPI etc...

I really feel the rate of inflation for most people is *massively* underestimated by any of these measures...fuel prices, food prices and utility prices sky-rocketing recently would put "real" inflation far higher than the government's prepared to admit (admittedly, the house price "correction" will help things, but I really don't think the falling cost of iPods does...) - and the higher the "real" inflation, the better value your student loan becomes, I guess.

Also, I have to say that I'm 100% behind free education...

A higher educated workforce is in everyone's interest and certainly in the interest of the country as a whole. Historically, university graduates always have paid for their degrees - by paying higher taxes for the rest of their life on their higher wages. Obviously the increased number of people going to university challenges this model, but in the scheme of how the government spends money these days (what is it...£40m for a mile of motorway?), I really think we should be able to find room in the budget for free HE. (afterall, half of europe manage it...)

Finally, I can believe that my degree cost the £1000/year I paid for it, just about - I had, compartitively, quite an intensive course, but the idea of them charging 3k now is insane...I know many people who had 2 hours of contact time / week...That would be £3000 for 60 hours...so what, £50/hour....Say there are 100 people on the course, that's £5,000/hour the uni gets paid for putting on that lecture...And let's not forget that iniversities have other income streams besides student fees and government subsidies - some of the stuff uni's develop and sell rakes in millions, they get private donations etc etc etc...

Titch89

mizzbiz wrote: »

Prior to 1996 and the absolutely abhorrable Blair, University was paid for by taxes. Now I wouldn't complain if i'd had a tax reduction when student loans came in since it was no longer funding this, however I didn't. The extra money has been spent elsewhere. So much for free education.

if uni was free (which I believe it shouldn't be) what's to stop people going there for 3/4 years and do nothing, just so they don't have to get a job?

I'm sure I was also told people pay for uni because generally, graduate jobs pay more.

And why should tax payers have to subsidise it all? Where would all the extra money come from?

I agree with Tinkerbelle.

treliac

mizzbiz wrote: »

I don't think you can sue for misselling but I think you should be able to.

How many 18yr old school leavers supposed to be able to understand compound interest. I'm furious that i'm paying interest on the interest on my student loan, I certainly didn't undertsand this and the 'salesperson' never pointed it out to me.

To add to this, how many of the population, of ANY age, understand compound interest?

Secondly, if you want to go to uni, you have to pay and therefore most students need to borrow? Where would you go to get better than the 'student loan'?

Having to borrow in order to go to uni points to the importance of choosing your course/degree wisely. There are courses that lead nowhere and employers are going to be increasingly fussy with more and more graduates in the job market.

VickyA_2

It's frustrating, but that's the way of the world. I'm earning an ok salary as a teacher, yet in the past year (taking into account the interest and what was taken out of my pay for student loan contributions) I have only paid £40 off. Pretty annoying, but that's the danger I suppose.

Not sure about the criteria now, but when I left uni for the first time in 2001 the SLC said that the loan would be written off after 25yrs if it hadn't been paid off in that time.

Tassotti

The OP never got back...tells you something