Student Loans discussion

gazat

Does anyone else out there feel that they may have been missold their student loans?

I seem to recall the conversation including statements such as
"you might as well take it - its effectively free money"
"you only have to pay it back once you're earning loads anyway, and once you leave university you'll be on at least £20-30k" (obviously not true- threshold was 10k and like most people leaving uni I started on around £12k per year...)
"the interest you pay is at inflation which is 2% [or something similar]" - no mention of the fact that this can change etc (obviously I know that now but as a young 18 yo I was not really aware of such things and probably should have had things explained a bit more)

Does anyone know if there is any organisation looking into misselling from the SLC, or how I could find out if there was misselling on my part.

Has anyone else had similar experience - I would be interested to know.

Thanks,

Idiophreak

There was another thread on this somewhere...

The long and the short of it is...you'll get nowhere.

The people "misselling" you the student loan most probably weren't the SLC - so it's more bad advice than misselling...You then *applied* for the loan yourself, you weren't sold it. And as an 18 year old, you were a (supposedly) responsible adult...so should have had the sense to look into the exact terms of the loan etc...I was under no illusions about the student loan when I took it..why? Because I bothered to read about it first...

bestpud

So, if you went to your local pub and were told how wonderful British Gas (just for an example) were, you'd go off and change your energy supplier without reading the T&Cs or checking it out? And then, when you realised it wasn't as rosy as they said, you'd contact BG and accuse them of mis-selling? :rolleyes:

Get real! You were 18, not 8!!

Honestly, what is wrong with people? Why does everything have to be someone else's fault these days? What the hell happened to personal responsibility?

Perhaps I'm just being grumpy today but this post has wound me up! :mad:

soolin

On another thread it was suggested that I take too much responsibility for my sons yet they did their own loan appplications and I don't think they were missold at all.

You take a loan and you pay it back, it isn't rocket science. If you didn't need the loan then why did you take it and spend it?

anewman

Idiophreak wrote: »

And as an 18 year old, you were a (supposedly) responsible adult...

It's a shame the SLC sees it differently when they have to get away with giving you less money.

gazat

Thankyou for your responses - some constructive, others less so.
I was, however, asking for advice, not judgement!

I am perfectly aware of the realities of what a loan is.

The reason I asked is because at an initial glance it looks rather similar to the misselling that went on with the endowment funds, and no-one really getting militant with their judgements regarding that particular issue.

As I recall, the application was made in the student loans office of the university with what could only be either employees or agents of the SLC.

If it turns out that there is no investigation into this, or that an investigation has yeilded no results then so be it.

However if anyone does know about a case being made then I would like to hear from them.

Finally, I repeat myself: Spare me you judgements, share your advice, if you would be kind enough to do so.

Idiophreak

So how, *exactly* do you feel you've been missold...

Is it the fact you're having to pay it back you're unhappy about?
The fact you weren't told that the interest rate varies?

gazat

Also, Bestpud, as I'm sure you are aware, BG are not regulated by the FSA, and not subject to the financial ombudsman, which can supercede the t&c of the contract for a financial services.

I'm sure you are also aware that FSMA (the legislation which gives the FSA powers of authority) takes great pains to ensure the protection of private clients (ie consumers/ordinary people) are adequately protected from clever marketing tactics used by unscrupulous lenders.

Soolin, what makes you think that I did not need the money to get an education. University is an expensive business, especially when you do not have parents to bail you out.
I am glad, however, that you feel that your son's were not missold.

gazat

Idiophreak,

Perhaps more useful would be to get hold of the criteria for something to be classed as misselling.

That would be a useful contribution to this discussion.

Could you point me in the direction where I might find such a criteria?

To answer your question, though, I have always been aware that the loan will need to be paid back. This is really not an problem for me

soolin

gazat wrote: »

Also, Bestpud, as I'm sure you are aware, BG are not regulated by the FSA, and not subject to the financial ombudsman, which can supercede the t&c of the contract for a financial services.

I'm sure you are also aware that FSMA (the legislation which gives the FSA powers of authority) takes great pains to ensure the protection of private clients (ie consumers/ordinary people) are adequately protected from clever marketing tactics used by unscrupulous lenders.

Soolin, what makes you think that I did not need the money to get an education. University is an expensive business, especially when you do not have parents to bail you out.
I am glad, however, that you feel that your son's were not missold.

I didn't say that many people do not need a loan to go to uni. I just wondered how mis selling works when you are offered a loan, which you need and which you accept? I assumed by the fact you felt you were mis sold that you didn't feel the loan was appropriate and that you could have possibly managed without one?

So a serious question. With hindsight if you agree you needed the loan, what would you do differently now that you feel proves you were originally mis sold the loan?

soolin

gazat wrote: »

Idiophreak,

Perhaps more useful would be to get hold of the criteria for something to be classed as misselling.

Mis selling usually means a number of things. Firstly you were sold the wrong product for your need, so that covers the number of people who feel they were pressured into a loan where possibly other products like a short term overdraft would have been more appropriate.
Secondly, you were mis sold a rate, so for instance in a face to face interview your bank assistant sells you a 9% loan and pressures you to sign up quickly as it is th ebest rate you will get and it will go up soon if you don't agree. You then walk out the bank and find that you could have phoned telephone banking and got the same loan at 8%.
Thirdly, you are sold extras such as payment protection wher eit becomes obvious it is not necessary or even appropriate.
Lastly you are sold a loan at a fixed rate which later transpires actually varies in certain circumstances or after a period of time.

So, I ask again, how do you feel the loan was mis sold to you?