student loan

snakeio

Hi all,

About 5 years ago i got a student loan for 3.5k from the student loans company LTD. Now after 3 years being on a salary of over 30k per year, im still not paying my loan back although i get a letter from them each year telling me the interest added that year. now at 3.8k.

I presumed that a salary over 18k meant automatically you were to have deductions from your salary until payed off. This never seems to be happening and im confused.

Anyone got or had this problem please help.
Regards
Ian

kaisersoze_2

I dont understand the problem, ring them up and speak to them about paying off a certain amount per month.

Just because its supposed to come off your wages doesnt always mean there arent some oversites on their part, im sure a phone call would sort it out.

http://www.slc.co.uk/contact%20us/customer_enquiries.html

CLAPTON

When you started you current job, you should have informed your employer that you were liable for student loan repayments ... otherwise speak to the SLC

pennyturner

My boyfriend is in a similar position. I recently saw his statement from the student loans company which shows that although he is paying them, the amount being paid doesn't cover the interest added. So the amount he has to repay is actually going up by £100 per year instead of down!

If this was my loan I'd be on to them straight away as I'm sure its not that difficult to arrange to pay off a larger amount. However, it does seem that the student loans company are being a bit sneaky and are relying on the fact that most people are lazy and wont bother to check that their loan is actually being paid off.

Robert_Sterling_3

The amount SLC take is based on earnings. It is not unusual for the balance of the loan to increase when earning are low.

Many students are not in any hurry to pay off their loans. If you do want to pay some or all of it off it is not difficult to do so.

CLAPTON

pennyturner wrote: »

My boyfriend is in a similar position. I recently saw his statement from the student loans company which shows that although he is paying them, the amount being paid doesn't cover the interest added. So the amount he has to repay is actually going up by £100 per year instead of down!

If this was my loan I'd be on to them straight away as I'm sure its not that difficult to arrange to pay off a larger amount. However, it does seem that the student loans company are being a bit sneaky and are relying on the fact that most people are lazy and wont bother to check that their loan is actually being paid off.

The student loan repayments are 9% of earnings above 1,250 per month.
The interest rate currently being charged is 1.5%

Many people see the repayment rate as being very very fair because it's based on one's income rather than demanding a fixed amount each month irrespective of income.


This method of repayement is clearly spelt out in the contract he signed
-is clearly spelt out on their website
-is mentioned in newspaper article every year (lets say a few thousand times)
-is mentioned on money programmes on radio and TV when dealing with student finances.


Nevetheless he is indeed free to pay more.. he merely needs to contact the SLC.
Many people however, feel its better to save the money for mortgage deposit or repay other more expensive debt rather than pay a low interest rate debt.