Undergrad student loan during masters year

BigBouncyBall

Hi

I'm currently coming to the end of an MSc in septemeber (strange subject i know )

I got my annual statement of pain telling me i owed the student loans co ~£9900 + 1 years interest of about £330 = ~£10200. I thought that was a bit high so I turned over and noticed that interest payments were now ~3%!

I thought the student loan was always around 0.25%-1% why am i paying more? Clerical error?

I could understand paying that if i was actually working and paying back the loan but i'm not earning a penny at the moment. I'm in full time (albeit postgrad) education so should i be paying the lower rates?

or has the rate just gone up?

advice appreciated!

custardy

Interest from September 2008 to August 2009

The interest rate set for the academic year is the maximum which can be charged, and usually remains the same throughout the year. However, cuts to bank base lending rates triggered a low interest ‘cap’ at several points in late 2008 and early 2009. This meant that the interest rate for income contingent Student Loans was reduced a number of times:
from 1 September to 4 December 2008, the interest rate was 3.8 per cent
from 5 December 2008 to 8 January 2009, the interest rate was 3 per cent
from 9 January to 5 February 2009, the interest rate was 2.5 per cent
from 6 February to 5 March 2009, the interest rate was 2 per cent
for 6 March to 31 August 2009, the interest rate is currently set at 1.5 per cent (though this could change)
Interest from September 2009 to August 2010

From 1 September 2009 to 31 August 2010, a zero per cent interest rate will apply to income contingent Student Loans.

http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/RepayingStudentLoansCoursesStartingFrom1998/DG_10034867

BigBouncyBall

so the rate is the same whether you're an undergrad, postgrad or working. 1 rate for all, male or female?

celyn90

BigBouncyBall wrote: »

so the rate is the same whether you're an undergrad, postgrad or working. 1 rate for all, male or female?

In terms of interest, yes, we are all charged the same regardless of circumstances. Your income only changes what you pay back at a specfic time.