Student Loan Repayments/Reductions?

Savvy_Sue

hitman_uk wrote:

I thought it automatically sets up a standing order of the minimum amount when you sign up..thats what mine did. As soon as I earned 15k after graduating it automatically took aout the money. I was lucky in a way cause i lived at home and had a part time job and qualified for 1500 quid a year grant. I owed 2k when i finished and forgot all about it. After a couple of years of bening in full time employment i got a anual statement saying id payed of 500 quid...i now owe next to nothing and will be straight this year

I think it gets the money from your employer rather than direct from your bank account. At least, one of my colleagues has a deduction from her student loan on her payslip.

stardust2000_uk

Unfortunatly the interest starts earning the day the money is put into your bank account, I just got through an annual statement on my loan and the interest is already adding on at about £10 a month!

The money also gets taken off you directly when you are paid along with your tax and NI so theres no way of getting around it unfortunatly.

People who are starting uni this year (I think) will have 25 years to pay off their loans, after this the debt is cancelled, for the rest of us, we have until we're 60! But then we don't have top up fees to worry about...

ReportInvestor

stardust2000_uk wrote:

People who are starting uni this year (I think) will have 25 years to pay off their loans, after this the debt is cancelled, for the rest of us, we have until were! 60! But then we don't have top up fees to worry about...

I've just checked this. People starting in September 2006 or after will have their debt wiped out after 25 years.

BUT people starting in 2005 or earlier continue to owe money until they are 65 or permanently disabled See here

Where that leaves students who start in 2006-7 and had deferred entry I don't know. (These are students who have taken a gap year and after a government concession had their fees set at 2005 levels i.e. about £1,100 rather than £3K).

I suspect they will get lucky twice, and have their debts cancelled after 25 years - but I don't know.

Karnam

:eek: this means in theory i will be paying off my SLC when my daughter's is in the process of being wiped out!

this debt is gonna follow me to the grave!

chocshake

And remember it's not only a higher than inflation interest rate, but we're paying interest on our interest so even when we're out of uni the amount we need to pay back will countinue to grow... (no wonder that they're in no hurry to get us to pay them back!)

dervish99

ReportInvestor wrote:

The 3.2% was an untypically high rate.



I presume that the interest free bit is from taking out your loan to graduation, which is technically nearly three years "interest free money".

Ah this is not true, i recieved a statment for last years loan, (i'm in my second year) and it has already accured interest, still if you don't spend it on booze and invest it instead by the time you graduate you can pay odd the loan + interest and still come out with some free cash.

Matt-0

stardust2000_uk wrote:

The money also gets taken off you directly when you are paid along with your tax and NI so theres no way of getting around it unfortunatly.

apart from the dying, being 65 or perminatly disabled to wipe it out. If you leave the country you are out the paye system so don't pay (but really you are meant to declare earnings and send money back home for it). Another thing a freind mentioned is working for yourself, if you own a business you pay yourself a £14,999.99 salary a year so don't pay back the loan, but your the company so all your money is in your company account.

Though that might just be my freinds idea, might not be possible. If anyone knows about that, let me know. Cheers

impy78

Well, for once I am glad to know that I will never earn that much money, and hence never have to pay off the loan!!!