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Gdh1091

Plan 1 Student Loan Interest Rates.

So ordinarily the 1st September to 31st August interest rate is set by the lesser out of the the RPI and the BOE base rate + 1%, taken as-at the preceding March.

However, over this recent period of high inflation the setting of these interest rates has been more frequent, seemingly bending away from standard practice to ensure that those with student loans aren't getting too much of a good deal compared to those with regular loans.

My query is should we, now that the RPI is decreasing and back below the BOE + 1% level should we expect to see similar frequent interest changes to keep up with the movement the other way? This would seem fair, but I'm aware not all is always fair when it comes to such things.

Ed-1

Gdh1091 said:

Plan 1 Student Loan Interest Rates.

So ordinarily the 1st September to 31st August interest rate is set by the lesser out of the the RPI and the BOE base rate + 1%, taken as-at the preceding March.

However, over this recent period of high inflation the setting of these interest rates has been more frequent, seemingly bending away from standard practice to ensure that those with student loans aren't getting too much of a good deal compared to those with regular loans.

My query is should we, now that the RPI is decreasing and back below the BOE + 1% level should we expect to see similar frequent interest changes to keep up with the movement the other way? This would seem fair, but I'm aware not all is always fair when it comes to such things.

The interest rate is set as the RPI for the preceding March subject to an ongoing cap of the BoE base rate +1%. The former is fixed throughout the academic year while the latter is variable as and when it changes.

JH_BEM

Dear Team,

partner has £30k in Student Loan to repay.
Looking to repay it asap as the interest on it now is 7.6%!!

Can you increase your repayments via your employer payslip?
If so - is it on Gross salary - ie reduces your Tax and NI costs?

cjames7588

I have both a plan 1 and plan 2 loan. How is the best way to roughly calculate my monthly payments? I know what they are (obviously) as it is on my pay slip but I'd like to know the calculation for it.
TIA

silvercar

cjames7588 said:

I have both a plan 1 and plan 2 loan. How is the best way to roughly calculate my monthly payments? I know what they are (obviously) as it is on my pay slip but I'd like to know the calculation for it.
TIA

9% over whichever is the lower threshold for paying back your loan. The 9% on anything between the 2 repayment threshold goes towards paying off the loan with the lower threshold, the rest on the loan with the higher threshold.

D*G_3

I am trying to work out whether it is better to pay off the student loan earlier if you have a higher income. Or does that not make any difference to the amount you pay long term? Is there any sort of calculator for this? Thanks

silvercar

D*G_3 said:

I am trying to work out whether it is better to pay off the student loan earlier if you have a higher income. Or does that not make any difference to the amount you pay long term? Is there any sort of calculator for this? Thanks

It saves you a lot of interest! 

Whether it is worth doing depends on your likely future income long term. Also consider what else you could do with the money instead eg house deposit, investment, pension.

Fluja

Hello all, next year 24/25 both my daughters will be at uni. Our gross family income is 68k.
Will my daughters get any additional support or will both get the minimum? which is what it seems to be.

I currently support daughter 1 £4.5k+ as the minimum grant doesn't cover rent (£150 pw including bills) let alone living costs, and yes she has a PT job.
I am finding it hard to believe I'll need to find another 5k.  

I am sure this will have been covered,  just can't find it.

all advice greatly appreciated 

silvercar

Fluja said:

Hello all, next year 24/25 both my daughters will be at uni. Our gross family income is 68k.
Will my daughters get any additional support or will both get the minimum? which is what it seems to be.

I currently support daughter 1 £4.5k+ as the minimum grant doesn't cover rent (£150 pw including bills) let alone living costs, and yes she has a PT job.
I am finding it hard to believe I'll need to find another 5k.  

I am sure this will have been covered,  just can't find it.

all advice greatly appreciated 

See this article: problem 5 outlines the maintenance available if you have more than one child at university at the same time.

https://blog.moneysavingexpert.com/2017/10/warning-parents-2-children-wholl-go-uni-save-now-systems-biased/

journeyman2

Hi there

just want people’s take on this old conundrum 

I have 16k left on my student loan at an interest rate of ~6 %. Is it worth paying off a large chunk of this or paying down the mortgage (currently at a much lower interest rate and no renewa for a few years) ?. 

Paying it down will give me more disposable income and quickly get rid of a high interest debt.  If I continue as it stands I’d probably pay this off within 5 years. 

Many thanks!