Repaying Student Loans 2009/10 guide discussion

CollinF

I do not get it why this is even a matter of a discussion. Student loan has to be repaid. I do understand that education is a pricey thing, interest rate might be a little bit challenging. But once upon a time you signed yourself to a loan. So be so kind and repay it. You know, I like to compare student loans with smaller loan called payday loans online with ameriloan. If you are not sure you can pay everything back, then stay away from this service.

Good_£_Intentions_Matt

Hi,

Hope am in right place.

Had letter through from SLC today re choice to repay either the three Fixed Term loans from 1995-2001 (pre 1998 style) or Income Contingent loan (2011-2012 PGCE), or they will default for me to repay both.

I am 39 years old with lots of debt (estimate about £20-24k total inc c. 6.5k + 3.5k student loans (c. 10k in student loans).

Several creditors chasing me. Unresolved debt issues, a possible chance could do IVA/maybe even bankruptcy.

My work history is erratic and not had secure, well paid, sustained work. Temp moved back with parents (streuth almost 40!). Got temp part time/cover work now as ESOL Tutor in FE sector (c.£1000/mth salary), may go back abroad to teach English Language/ESL again soon as think better financial prospects (maybe earn equiv of £21-30k/yr, although maybe short term earnings if return to UK, after one to several yrs (which quite probable)). This is if can save a bit now to finance moving abroad again. I have always deferred as earned and now earning well under the repayment threshold.

I did PGCE 2011-2012 (hence Income Cont. loan) but failed to pass QTS element. I have PTLLS and may continue teaching in FE sector by doing CTLLS/DTLLS/GDTLLS in future. I may stick to working in TESOL/TEFL/ESL field as am now (ESOL) or maybe go back to admin/IT if remote chance get decent job offer. Not sure if will ever write successful book, hope to.

I believe the interest rates are: Fixed Term loan 3.6%, Income Contingent loan 1.5%, not fully sure though. Fixed term loan written off when 50, c. 11 yrs; Inc Cont when about 64, c.25 yrs.

What's best advice?

Many thanks.

:think:
Matt

Poolie

Good_£_Intentions_Matt wrote: »

Hi,

Hope am in right place.

Had letter through from SLC today re choice to repay either the three Fixed Term loans from 1995-2001 (pre 1998 style) or Income Contingent loan (2011-2012 PGCE), or they will default for me to repay both.

I am 39 years old with lots of debt (estimate about £20-24k total inc c. 6.5k + 3.5k student loans (c. 10k in student loans).

Several creditors chasing me. Unresolved debt issues, a possible chance could do IVA/maybe even bankruptcy.

My work history is erratic and not had secure, well paid, sustained work. Temp moved back with parents (streuth almost 40!). Got temp part time/cover work now as ESOL Tutor in FE sector (c.£1000/mth salary), may go back abroad to teach English Language/ESL again soon as think better financial prospects (maybe earn equiv of £21-30k/yr, although maybe short term earnings if return to UK, after one to several yrs (which quite probable)). This is if can save a bit now to finance moving abroad again. I have always deferred as earned and now earning well under the repayment threshold.

I did PGCE 2011-2012 (hence Income Cont. loan) but failed to pass QTS element. I have PTLLS and may continue teaching in FE sector by doing CTLLS/DTLLS/GDTLLS in future. I may stick to working in TESOL/TEFL/ESL field as am now (ESOL) or maybe go back to admin/IT if remote chance get decent job offer. Not sure if will ever write successful book, hope to.

I believe the interest rates are: Fixed Term loan 3.6%, Income Contingent loan 1.5%, not fully sure though. Fixed term loan written off when 50, c. 11 yrs; Inc Cont when about 64, c.25 yrs.

What's best advice?

Many thanks.

:think:
Matt

If your income is currently below the deferment threshold for the fixed term loans, you could opt to repay the fixed and then defer.

The interest will continue to be added to both sets of loans whatever you choose.

Good_£_Intentions_Matt

Poolie wrote: »

If your income is currently below the deferment threshold for the fixed term loans, you could opt to repay the fixed and then defer.

The interest will continue to be added to both sets of loans whatever you choose.

Thanks Poolie.
Took ages to find this reply after logging in! Hmmm!

So , effectively I can choose to repay fixed term loans , pre 1998 ones, and defer, so that can defer both types, even if in future do earn between the c.16000 salary and the 23000 salary figures?

SLC are not crystal clear or downright evasive in their communications.

Thanks

Matt

Dunroamin

Good_£_Intentions_Matt wrote: »

Thanks Poolie.
Took ages to find this reply after logging in! Hmmm!

So , effectively I can choose to repay fixed term loans , pre 1998 ones, and defer, so that can defer both types, even if in future do earn between the c.16000 salary and the 23000 salary figures?

SLC are not crystal clear or downright evasive in their communications.

Thanks

Matt

There's no such thing as deferring the new style loans, if you're earning over the threshold you pay, if not you don't. Therefore, if you earn over £16,000 and £23,000 (it's actually higher than that), you'll need to defer the pre 1998 loan and repay the more recent one.

Poolie

Good_£_Intentions_Matt wrote: »

Thanks Poolie.
Took ages to find this reply after logging in! Hmmm!

So , effectively I can choose to repay fixed term loans , pre 1998 ones, and defer, so that can defer both types, even if in future do earn between the c.16000 salary and the 23000 salary figures?

SLC are not crystal clear or downright evasive in their communications.

Thanks

Matt

When you come to defer the pre-1998 loans each year, you will need to present evidence to support the deferment. If your income is above the 23,000 threshold then SLC loans will start to expect the payments.

Poolie

Dunroamin wrote: »

There's no such thing as deferring the new style loans, if you're earning over the threshold you pay, if not you don't. Therefore, if you earn over £16,000 and £23,000 (it's actually higher than that), you'll need to defer the pre 1998 loan and repay the more recent one.

Incorrect, as the original poster has done a PGCE for which they had a post 1998 loan, they are given the option to choose which loan they wish to pay first. If they choose the pre-1998, this has the same affect of deferring the post 1998 till the pre-1998 is repaid. The repayer can opt to switch which they pay first at any time

Dunroamin

Poolie wrote: »

Incorrect, as the original poster has done a PGCE for which they had a post 1998 loan, they are given the option to choose which loan they wish to pay first. If they choose the pre-1998, this has the same affect of deferring the post 1998 till the pre-1998 is repaid. The repayer can opt to switch which they pay first at any time

Thanks for the correction; I'll delete my post.

NB
The deferment threshold for pre 1998 loans is currently £25,936 pa.

Cole_porter

Hello there.

Last year I posted here asking for help and I remember Poolie and Amanda were very kind and informed me very well, clearing my doubts. So first of all, thanks a lot for that, again.

Just to remind you about my case, I took a loan in 2007, just tuition fees, and graduated June 2010. Then I moved to Italy and haven't had a real steady job since then until very recently.

I was/am supported by my parents and girlfriend, and that's what I told the SLC when I sent my Overseas Income Assessment Form. I also attached them a letter signed by my parents confirming that they were supporting me financially. (Poolie recommended me to do this). Then I got a letter from the SLC telling me that it was allright and they weren't expecting any payments from me for the next year. Good.

I just got this year's new form to fill and I have some questions.
Since around october, I've been working part-time (just 3 hours a week) teaching english lessons in a small learning centre for seniors.

The thing is that I don't know what to include with my Overseas Income form, because my payslips are, obviously, in Italian. Do I need to officially translate those? Also, I didn't notify the Student Loan company when I started my new job because the pay is so low that I didn't even think about it...It's like 130 euros per month after taxes. Could that be a problem? I know I'm under the threshold so I guess wouldn't have to worry, but I am a bit confused.

My idea would be to update my situation with them just by telling the truth, that I'm currently in employment, part-time, and still getting support from family. But I don't know if the proof I have, meaning the payslips, is gonna be good for them.

any ideas?

Thanks a lot in advance. It's great to read you Poolie year after year. Your massive help is greatly appreciated.

Beverley

Hello font of all knowledge :-)

I took out student loans in 97, 98, 99 and 2000. As a single parent working part time and looking after a sick child I've always deferred repayments.

I'll be 50 in September this year and, from what I can see, the loan will then be cleared for me.

However, I've just come across a job opportunity which, if I get it, will take me over the threshold and means I'll have to start repaying the debt.

If I begin to repay the debt, am I then liable for the whole amount (currently around £9.6k) or do the repayments stop in September when I turn 50?

Thanks