Being Charged 30% interest for a study loan

banksarebad

Hi, please give me some advise. I took out a study loan with Barclays 1 years free interest, After going through all the fine print - I have till the 8th September 09 to pay the full loan amount of £5600. If I miss this date the loan goes to a fixed period of 48 months with a fixed monthly payment of £242. This equates to over £6000 in interest alone (30%)

I have been to Natwest and asked for a consolidation loan, my credit rating is good score 906, Natwest wont help because my risk is too high. Barclays have put my risk profile at £11 600 on my credit report. ( £5600 + 6000) No one will give me credit even though my risk profile will drop considerably once a new, more affordable loan is secured.

Please somebody help!!

cakinwande

Hi there,

Ok, so you took out a 1 years interest free loan and the year is up in September? I'm not sure if your calcuations are correct because 30% on a loan of £5600 is £7280. What you need to look at really is the APR.

Getting a loan may not make your problems any easier and if its a study loan, the APR may be lower than a personal loan i.e you are still going to be paying interest on the consolidation loan. You could always increase your monthly payments if you can afford it. Banks are not going to look at what your credit rating may be because that would just be stupid to assume. There here and now is whats important.

If I were you, I'd just stick to the one loan you have and pay it off as soon as. It seems to me as if you just don't want to pay the interest but its not as if the loan was misold to you. You knew you were going to be charged interest after the year was up.