Help With Student Loans - HERE!

LushesFaith

Ed-1 wrote: »

The Government are giving up receiving the income stream of repayments over the next however many decades in preference for a (albeit severely discounted) lump sum of cash now to reduce Government debt.

The loans in question are written off at age 65. The Sale of Student Loans Act 2008 prevents loans being sold on worse terms than equivalent unsold loans of the same type.

The terms of loans are still controlled by the Government and are set in legislation. The Government have repeatedly said they have no plans to change the terms of pre-2012 loans which if anything is a bad thing as the repayment threshold on post-2012 loans is being changed to £25000 while the threshold for pre-2012 loans isn't being touched.

The loans continue to be collected by SLC via HMRC. The only difference is that the Government now have no right to the repayments which must be passed to the loan purchaser.

ok. That makes it clearer

AKN2412

Hi,

I’m 22 and just enrolled into an apprenticeship where I will be doing it solely in my place of work, rather than at the college. I currently have debt with a bank loan and credit card.

Am I still able to able to apply for a student loan or not?

Any advice will be greatly appreciated!

Thanks!

agrinnall

https://www.gov.uk/student-finance/who-qualifies

DJamesS

Hi there,

Looking for some advice re. paying off my student loans.

I studied my undergraduate degree between 2011 and 2015 for which I have a Plan 1 loan (~ £28k, 1.25% interest) and I studied my MSc between 2016 and 2017 for which I have a PGL (~ £10k, 6.1% interest).

I've just started a pretty well paid graduate job in ecological consultancy, on £24k gross.

I'm not intending on paying any more on my UG loan than is taken automatically (9% over ~£17k I believe) and this is being taken out of my gross salary already. I won't pay this all off over the 25 years before it's wiped, so there's no point in making voluntary payments on that.

My PGL is a much higher rate of interest and I won't start to pay it off til april 6th 2019, but when I do that will be an additional 6% over £21k. That will be a significant chunk of my gross income being taken for 30 years. I'm contemplating whether it is worth making voluntary payments as soon as I have the spare cash to do so in order to keep the interest from raising exponentially and trying to pay this loan off. I don't know whether paying it off ASAP is a better choice than losing a significant chunk of my salary for most of my working life. There doesn't seem to be a MSE article for graduates with BOTH types of loan combined so I don't know where else to turn for advice.

Any help is much appreciated.

silvercar

My PGL is a much higher rate of interest and I won't start to pay it off til april 6th 2019, but when I do that will be an additional 6% over £21k. That will be a significant chunk of my gross income being taken for 30 years. I'm contemplating whether it is worth making voluntary payments as soon as I have the spare cash to do so in order to keep the interest from raising exponentially and trying to pay this loan off. I don't know whether paying it off ASAP is a better choice than losing a significant chunk of my salary for most of my working life.

You need to do calculations based on the repayments and your personal expected salary in the years to come. If it like you will clear this loan in full, then it makes sense to pay it off early if you can afford to do so.

Buttersideup

Hi, my son completed his degree 4 years ago and has since emigrated to New Zealand. He has been in touch with SLC and is paying his loan off. They won't accept payments from foreign bank accounts, so we have set up a direct debit from our account and he transfers money to us every few months.
It has occurred to me that if he was in the UK the money would be taken from his wages before tax, but this doesn't seem to be an option of you live abroad.
Does anyone have any experience or advice as to how the payments could be made more efficiently please?

sheramber

Buttersideup wrote: »

Hi, my son completed his degree 4 years ago and has since emigrated to New Zealand. He has been in touch with SLC and is paying his loan off. They won't accept payments from foreign bank accounts, so we have set up a direct debit from our account and he transfers money to us every few months.
It has occurred to me that if he was in the UK the money would be taken from his wages before tax, but this doesn't seem to be an option of you live abroad.
Does anyone have any experience or advice as to how the payments could be made more efficiently please?

The amount payable is calculated from the gross income before deductions but loan repayments are paid from the pay after tax has been deducted.

They are not a tax deductible expense.

Espressodoble

Hello,

As an overseas (Germany) self-employed person (on Plan 1) I must start repayimg when I earn teh equivalent of 17,775 GBP. What I'm interested in knowing is the calculation that will show how much I can earn in my local currency before I must start repaying. I have looked at the Threshold tables which provides the following information for Germany (I include a GBP Gibraltar for the base comparison). My question is simply - How much can I earn in Euros before I must pay back - what is the calculation. Many thanks
Country Currency Exchange Rate Earnings Threshold
Germany Euro 0.805942 £14,225.00
Gibraltar GBP 1 £17,775.00

Espressodoble

Buttersideup wrote: »

Hi, my son completed his degree 4 years ago and has since emigrated to New Zealand. He has been in touch with SLC and is paying his loan off. They won't accept payments from foreign bank accounts, so we have set up a direct debit from our account and he transfers money to us every few months.
It has occurred to me that if he was in the UK the money would be taken from his wages before tax, but this doesn't seem to be an option of you live abroad.
Does anyone have any experience or advice as to how the payments could be made more efficiently please?

I am certain they do accept money from foreign bank accounts. You only need there IBAN number and your SLC customer reference to set up a standing order to pay the amount they specify.

agrinnall

Espressodoble wrote: »

Hello,

As an overseas (Germany) self-employed person (on Plan 1) I must start repayimg when I earn teh equivalent of 17,775 GBP. What I'm interested in knowing is the calculation that will show how much I can earn in my local currency before I must start repaying. I have looked at the Threshold tables which provides the following information for Germany (I include a GBP Gibraltar for the base comparison). My question is simply - How much can I earn in Euros before I must pay back - what is the calculation. Many thanks
Country Currency Exchange Rate Earnings Threshold
Germany Euro 0.805942 £14,225.00
Gibraltar GBP 1 £17,775.00

If the information you have given is correct then it's the simplest of arithmetic (if you can't do it perhaps you should be asking for a refund on your tuition given the minimum requirements for a UK degree course ) :

14225 / 0.805942 = 17687 EUR

I have no idea whether what you have quoted is right, perhaps you could post a link to the table (you'll need to make it so that it doesn't work and we can change the link to look at it).