Student Loan Interest

PM

I've jsut graduated in September and I ave been working at a place to get some experience (voluntary). I just got a statement for my load charging interest at around £50 each month.

Is this right need some help Im confused. Even if im to get employment it will be under the loan repayment band.

The_One_Who

Obviously it would depend on the loan amount, but £50 a month seems about right to me. It will keep building up until you start earning more than just above the threshold. I wouldn't really worry about it though, even though it's debt it doesn't come up on your credit report or anything.

Oldernotwiser

Don't forget that your loan will have been accruing interest ever since you took it out. £50 per month seems about right to me as well but don't worry as it sounds as if you may not have to make payments for some time.

CLAPTON

based on last year (i.e. ending august 2008) the interest rate was 4.8%
so £50 per month interest implies student loan of about 12,500

if that's right then the interest will have fallen as the current rate is 3.8% so you will pay approx £40 i.e. 12500 x 3.8%/12