Repaying Student Loans 2009/10 guide discussion

arzosahr

As per usual i'm totally confused now...

I have a student loan for a course I started in 2000...

I'm assuming that my loan rate will now be the already mentioned 1.5% for 2010/2011, but my only concern is that I haven't earned over £15k for at least 6 years, the only payments to my loan have been in months where i've had overtime paid that took me over the threshold for that month - never bothered to reclaim these amounts as they were only £8 - £10 approx...

I just worry about my ever increasing loan amount, despite my earnings being well below the threshold (£11k) - is the SLC likely to decide it wants money repaid in the future...?

I don't mind paying monthly towards my loan, just at the moment I honestly don't know if I could afford much as money is tight!

I suppose basically it all boils down to - should i or shouldn't i start paying what i can now? or should i try to put any spare cash into a savings account instead?

MrsManda

arzosahr wrote: »

I just worry about my ever increasing loan amount, despite my earnings being well below the threshold (£11k) - is the SLC likely to decide it wants money repaid in the future...?

You won't start paying it back until you earn over £15,000 a year and then it'll be 9% of everything you earn over the £15,000. If you never reach this, you won't have to repay and your loan will be cancelled when you reach 65yrs old so I really wouldn't worry about it.

bankkiller

can anyone clarify if this is true?

i heard that if you are a teacher, then your student loan is waived or removed if you work for a certain number of years, something like 7 years?

is this true?

MrsManda

bankkiller wrote: »

can anyone clarify if this is true?
i heard that if you are a teacher, then your student loan is waived or removed if you work for a certain number of years, something like 7 years?
is this true?

I don't think this is right but if you're doing a postgraduate ITT course you may get a tax free training bursary of upto £9000 depending on what subject you are training to teach. Training Bursary

You may also get a 'golden hello' of upto £5000 depending on the school and subject you teach.

As Poolie below said there used to be the Teacher Repayment Scheme which no longer accepts new applicants. The details of which are HERE

Poolie

There was a scheme, which does not accept new applicants as Government has all the teachers they needed, called Teacher Repayment Scheme.

You had to stay within the education sector and there was strict rules and guidelines you had to follow. Paperwork had to completed on time and correctly otherwise the payments would start coming out of your salary.

Beverley

I started my 4 year degree in 1997 so was one of the last students to get part loan/part grant for their degree.

I know that under the pre 1998 rules, my loan will be wiped once I reach 50 (I'm currently 47). However, only my first year of loan was pre 1998 and I can't work out whether the other 3 years of loans still remain owing until I am 65 or are they all covered under the same rules. And does it follow that the 1997 loan will accrue 4.4% interest this year but the other 3 years will accrue the 1.5% interest?

denwadge

After reading the moneysavers guide to wiping loans and as I started uni in 1995 aged 39 and am now 53yrs old my loan according to this guide should be wiped. I've just spoken to the Student Loans company who say that they go by the last year of the loan not when study started! This totall contradicts what Martins site says so can anyone point out to me where I can find the same information on the Student Loan website so that I can write to complain!

MrsManda

denwadge wrote: »

After reading the moneysavers guide to wiping loans and as I started uni in 1995 aged 39 and am now 53yrs old my loan according to this guide should be wiped. I've just spoken to the Student Loans company who say that they go by the last year of the loan not when study started! This totall contradicts what Martins site says so can anyone point out to me where I can find the same information on the Student Loan website so that I can write to complain!

If you had your loans from 1995 I presume you have a mortgage style loan?
The Student Loan repayment website states:

Loan cancellation

Under certain circumstances we may cancel your liability to repay your loan. We will not cancel your liability to repay if you are behind on any repayments for a student loan.

For example, your loan may be cancelled if:

• You were under the age of 40 when your last agreement for a student loan was made and you reach the age of 50.
• You were aged 40 when your last agreement for a student loan was made and you reach the age of 60.
• Your last agreement for a student loan has been outstanding for no less than 25 years.

If you are permanently unfit for work and can provide evidence to show that you receive disability related benefit we may also be able to cancel your liability to repay your loan.

Poolie

Beverley wrote: »

I started my 4 year degree in 1997 so was one of the last students to get part loan/part grant for their degree.

I know that under the pre 1998 rules, my loan will be wiped once I reach 50 (I'm currently 47). However, only my first year of loan was pre 1998 and I can't work out whether the other 3 years of loans still remain owing until I am 65 or are they all covered under the same rules. And does it follow that the 1997 loan will accrue 4.4% interest this year but the other 3 years will accrue the 1.5% interest?

All your loans should be same type, if you didn't have a break. Therefore all the loans will be attracting 4.4% interest from today.

Beverley

Poolie wrote: »

All your loans should be same type, if you didn't have a break. Therefore all the loans will be attracting 4.4% interest from today.

I didn't have a break so although they will be attracting the higher rate of interest, does this also mean that all 4 loans will cease to exist when I reach 50? I was 33 when I took the first one and 37 when I took the last one.