Should I Pay Off My Student Loan? 2008/09 article discussion

neas

will student loan go negative interest if RPI goes below 0%? feel a bit cheated if it doesnt..

Lokolo

neas wrote: »

will student loan go negative interest if RPI goes below 0%? feel a bit cheated if it doesnt..

Although I would love it to, come on, its not going to lol.

Is that definitely the case? I know they base the year's interest on March's RPI, but I don't know if they had the forethought to put a clause in about not applying negative values. As such there's a possibility that our student loans will actually shrink next year... probably just wishful thinking, of course.

Although it could be a ploy to get more people to take out loans if they make the rate negative. I highly doubt they will.

phlash

If RPI goes below 0%, then it absolutely should be applied.

The loan should strictly stay the same amount. We are to used to seeing a loan (in the business sense) appreciate. The student loan should remain the same size, therefore it tracks RPI. Strictly speaking if it goes negative, we should see our loan shrink.

When working out capital gains tax shrinkage in the RPI amount is valid, why not with student loans? If it doesn't, I will be the first to setup the facebook group.

bibi_neko

I'm currently studying for a Masters and it's been paid for by a relative. I'm due to enter repayment in April but i should tell them my circumstance. I don't have a Fees Notification letter because i didn't go through the LEA. Does that mean a letter from my relative who paid for my fees and supports me will do? as well as a letter from the university stating that i'm currently attending one of their courses full time.

Also would this mean i'm deferred and due to enter repayment later?

manicsteve

Hi everyone,

Was wondering if I could get some advice regarding my SL situation. I owe £13000 from my degree and am currently considering applying for a Masters. I am in a good situation in that hopefully I can get the fees paid for with a bursary and wont need to take a loan out as I can live at home.

My question however is this:
Would it make sense for me to take out a student loan of £3600 anyway and put the lump into a cash ISA to earn the interest? It will of course boost my overall debt to £16600 so would it make more sense to just stay as I am?

Any suggestion would be great?

ashapala

I thought Student Loans were based on March CPI not RPI?

edit - got myself confused because people wanted student loans moved to CPI as it was lower.

But now RPI is lower than CPI, so i guess the petitions will be torn up?

melancholly

manicsteve wrote: »

Hi everyone,

Was wondering if I could get some advice regarding my SL situation. I owe £13000 from my degree and am currently considering applying for a Masters. I am in a good situation in that hopefully I can get the fees paid for with a bursary and wont need to take a loan out as I can live at home.

well you can't get a student loan for any form of postgrad study so that's not an option i'm afraid......

sly_dog_jonah

Any news on whether there will be an interest rate adjustment following the fall in the BoE base rate this month, like there was in December and January?

argood

sly_dog_jonah wrote: »

Any news on whether there will be an interest rate adjustment following the fall in the BoE base rate this month, like there was in December and January?

The rate will fall. Everything is in place, check the various student finance websites for an announcement next week.

Chris2685

Oooo goody, a nice 2% rate now

At least that means my savings rate is still higher than my loan rate, despite crappy savings rates!