Student Loans

DilbertJones

Student Loans Company loans

Who knows naything about them? I was wondering if htere is anyway they will never have to be paid back i.e what happens if earnings never go above the threshold?

Interest is currently charged at 3.2% is there a cap on the amount of interest they will add?

WSO

The student loans website is found here...

http://www.slc.co.uk/

Sorry I can't be more specific with the answers because I'm on the old mortgage style loan which is a lot easier with regards to working out the payments. Interest is linked to the rate of inflation, fortunately inflation has been pretty stable and I've been paying around 1.2% to 3.6% since I started paying mine back in 2001... mine will be finished by April next year... not that I needed to pay it back on my earnings but I feel it's my duty to repay it, I've had more than my share of finacial assistance for school trips while I was at school.

newfoundglory

There are varying rules depending on when they were taken out. The amount you have to pay back its slighly complex, but off the top of my head i think its currently 9% of any earned income OVER £15,000.

AFAIK the current loans continue to gather interest until:
(a) you pay it all off
(b) you reach the age of 65
(c) you become permanently disabled

With b and c, any remainder is written off if you have kept up on repayments that you owe up to that point. Obvoiusly, you could reach 65 having never made any repayments if your income wasnt high enough.

DilbertJones

So its quite likely that a new mother could never each the thresholds, therefore never paying it back.

However what she owes will be written off at the age of 65 if not paid back