Help needed re student loan interest, can you freeze it?

Lokolo

^^ hstudent its the same with me, if I had taken a gap year I would get a grant because household income is between £30k-£60k. When I started you wouldn't get one over £30k.

However, the student loan system is totally crap. If I get the graduate job I want then I will be earning £27k, which means I will pay off my student loan in only a few years, but those who started on half of me means that they won't start paying it off for years so I imagine won't fully pay it off in 25 years if they get the maximum each year (£6x 3 is £18k!!!! + interest!), so overall the government is losing out!

Oldernotwiser

whitfreak wrote: »

In referance to the government black hole, the situation is actually getting worse. Under the "old" system (pre 2006/7) loans were written off when you reached 65 giving you 40 years to get a wage well over £17k needed to just reply the interest (2% assummed...). Now loans are double the amount due to tution fee loans, the loans are written off after 25 years (35 if your scottish), and you now need to be earning over £20K just to repay the interest.

Now I know graduates in general earn more, but the likes of NQT's will not be making a dent on thier loans and the same with numerous professions which graduates undertake.

Not that any of this is relevent really.

But you don't stay a NQT forever! Even a teacher who's not particularly ambitious is likely to be earning over £30,000 after 10 to 15 years and making large inroads into their debts, even if not repaying them completely.

Oldernotwiser

Lokolo wrote: »

^^ hstudent its the same with me, if I had taken a gap year I would get a grant because household income is between £30k-£60k. When I started you wouldn't get one over £30k.

However, the student loan system is totally crap. If I get the graduate job I want then I will be earning £27k, which means I will pay off my student loan in only a few years, but those who started on half of me means that they won't start paying it off for years so I imagine won't fully pay it off in 25 years if they get the maximum each year (£6x 3 is £18k!!!! + interest!), so overall the government is losing out!

It would have been far better if the government of the day had opted for a graduate tax, unfortunately that was such a vote loser that they didn't have the courage to put it into place, despite considering it.

melancholly

Oldernotwiser wrote: »

It would have been far better if the government of the day had opted for a graduate tax, unfortunately that was such a vote loser that they didn't have the courage to put it into place, despite considering it.

i dunno - they had the courage to u-turn on an election pledge about fees full stop!

hstudent

Just noticed that the OP stated:

"We opened his student loan statement today."

Unless he has given you permission to do this or has a disability then you are not legally allowed to do that as he is considered an adult and it contains confidential financial information. The SLC are unlikely to write to any loanee's parents after completition of a University course unless they lose contact with the loanee.

Miss-spent_2

hstudent wrote: »

Just noticed that the OP stated:

"We opened his student loan statement today."

Unless he has given you permission to do this or has a disability then you are not legally allowed to do that as he is considered an adult and it contains confidential financial information. The SLC are unlikely to write to any loanee's parents after completition of a University course unless they lose contact with the loanee.

The 'We' I am referring to in the OP is my son (the one with the loan) and myself. Who did you think I meant?

surfcat

Lokolo wrote: »

However, the student loan system is totally crap. If I get the graduate job I want then I will be earning £27k, which means I will pay off my student loan in only a few years,

9% of 27K-15K = £1080 loan payment per year.

If your loan is say £15000, it will take nearly 14 years to pay off, assuming the loan accumulates NO interest over that time. I hardly thing that is 'only a few years'.

SC

Miss-spent_2

surfcat wrote: »

9% of 27K-15K = £1080 loan payment per year.

If your loan is say £15000, it will take nearly 14 years to pay off, assuming the loan accumulates NO interest over that time. I hardly thing that is 'only a few years'.

SC

I Agree and this brings us right back to myoriginal point, interest is being added all the time which makes it seem as though the debts will never be paid off.

Oldernotwiser

surfcat wrote: »

If your loan is say £15000, it will take nearly 14 years to pay off, assuming the loan accumulates NO interest over that time. I hardly thing that is 'only a few years'.

1. Why on earth would you think that there's be no interest being put on?

2. If you start in a graduate job at £27,000 then you're not going to remain on that salary for all that time. Assuming reasonable rises and promotions you WILL pay it off in only a few years as your salary increases.

Oldernotwiser

Miss-spent wrote: »

I Agree and this brings us right back to myoriginal point, interest is being added all the time which makes it seem as though the debts will never be paid off.

And as several of us have said; does it matter?