Student Loan Interest Rate Discussion

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  • Masomnia
    Masomnia Posts: 19,506 Forumite
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    Thanks for that. No real surprise!
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • BruceyBonus
    BruceyBonus Posts: 1,142 Forumite
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    "The repayment threshold will also remain at £15,000 for the next 12 months. Had the Government used a negative RPI rate to calculate this, the threshold would have reduced and borrowers would have started repaying earlier and ended up paying more. Setting interest at 0% has prevented this from happening."
    What a load of rubbish. I can't remember how many years the threshold has been at £15,000 without it being increased once to take into account RPI.

    I think we've all been mis-sold our loans. In this year's booklet it says "The aim is to maintain the value, in real terms, of the amount of the loan you actually owe. This means that however long it takes you to repay your loan, you will repay no more, in real terms, than you actually borrowed."
    Well, now everyone will be paying back more, in real terms, than they have borrowed.
  • Sol00
    Sol00 Posts: 1,230 Forumite
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    I was expecting this, although I'm disappointed. I wonder if Martin will start his campaign now?
  • Masomnia
    Masomnia Posts: 19,506 Forumite
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    Well, now everyone will be paying back more, in real terms, than they have borrowed.

    You have a point, but to be fair that does depend on the individual. According to the BBC, inflation for me personally is 5.6%, so whatever it is you'll be getting a good deal if you don't have a mortage; since that is the only thing that has significantly decreased in price, and the only reason RPI is significantly lower than CPI.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • Supportspice
    Supportspice Posts: 15 Forumite
    I admit to being confused on this, any advice welcome!

    I know I have a Pre 1998 set up. I know that my APR is 3.80%.
    Should I be expecting/praying/hoping any reduction in this?

    From my very limited knowledge (and setting arrangement fees aside) I know that I can apparently get a mortgage from Woolwich for 3.1% APR so is my student loan APR really going to be higher than a mortgage would be from a commercial bank?
  • argood
    argood Posts: 73 Forumite
    I admit to being confused on this, any advice welcome!

    I know I have a Pre 1998 set up. I know that my APR is 3.80%.
    Should I be expecting/praying/hoping any reduction in this?

    From my very limited knowledge (and setting arrangement fees aside) I know that I can apparently get a mortgage from Woolwich for 3.1% APR so is my student loan APR really going to be higher than a mortgage would be from a commercial bank?

    If you follow the link I posted then you'll see that the rate for post-1998 loans from September will be -0.4%
  • Supportspice
    Supportspice Posts: 15 Forumite
    edited 13 May 2009 at 6:56PM
    argood wrote: »
    If you follow the link I posted then you'll see that the rate for post-1998 loans from September will be -0.4%

    Thanks for this (sorry I missed it - Did you mean 'pre-1998')

    ...If I understand it correctly, interest will be added at the rate of 3.80 % until September 09 and then from September my loan will decrease in value?
    People on a post 1998 structure are the ones waiting for the government announcement to get the same instead of the 0% they are currently stating.

    Fingers crossed
    :j
  • This is a campaign i started last week to get them to give us shrinking interest rates, join the gorup and sign the petition.

    Search for "WE urge the government to Decrease Student Loans interest rates as promised" on facebook and you will find it.

    PS mod feel free to edit it and add the link.
  • BruceyBonus
    BruceyBonus Posts: 1,142 Forumite
    First Post First Anniversary Combo Breaker
    This is a campaign i started last week to get them to give us shrinking interest rates, join the gorup and sign the petition.

    Search for "WE urge the government to Decrease Student Loans interest rates as promised" on facebook and you will find it.

    PS mod feel free to edit it and add the link.
    Link to the group is http://www.facebook.com/group.php?gid=74145407555
    Link to the petition is http://petitions.number10.gov.uk/decreaseloans/
  • argood
    argood Posts: 73 Forumite
    Thanks for this (sorry I missed it - Did you mean 'pre-1998')

    ...If I understand it correctly, interest will be added at the rate of 3.80 % until September 09 and then from September my loan will decrease in value?
    People on a post 1998 structure are the ones waiting for the government announcement to get the same instead of the 0% they are currently stating.

    Fingers crossed
    :j

    Sorry about that, yes it's pre-1998 loans that are on -0.4%.

    Post-1998 loans are on 0% from September 09 to August 2010.
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