1 student loan = 5 seperate loans?

isibbot

Hi, I've been speaking to the student loans company recently to try and find out why my £9K student loan that I took out in 2001 for a 3 yr Bsc Honors Degree has risen to £11k+??????

I've been been earning over 15k for about 1-2 yrs and have been automatically making payments to the student loan company, via PAYE from my monthly wage. As per the standard agreement I think.

How is it possible for my loan to be going up? even if I'm only paying the minimum interest on the loan it should be rising? but at times I've paid about £100s in a month.

I spoke to the SLC and they say I'm paying interest on 5 loans???? !!!!!!. Has anyone else got any other experiences like this? thinking you have 1 student loan when you appear to have 5 and they all acure interest. Seems a bit immoral to me?

I apperciate any help or advise given.

Lokolo

You should be getting statements every year..... have you looked at these?

olly300

You took the loan out in 2001. From the date you took the loan out interest was added every month.

You started paying the loan back 2 years ago.

Even though you are paying the loan back interest is still added monthly on the amount you owe.

So 11K 8 years later sounds about right.

Also if you took subsequent loans out to cover tuition fees and living costs they get rolled up into one loan account. And interest is added monthly on the amount you owe.

Oldernotwiser

You've been accruing interest on one year of your loan since 2001, two years since 2003 and three years since 2004. Even with an interest rate at the rate of inflation, that's going to have added on a couple of grand by the time you started making repayments in 2007/8.

I don't quite understand how you've been paying "hundreds" in a month, as to be paying even £200 you'd have to be earning well over 40 grand. Have you really jumped from less than £15,000 to over £40,000 in just over a year?

(Apologies if this is the case but it just sounds unlikely.)

isibbot

you are correct, I havent lept in salary by 20k (more the pity). But my monthly payments are high because appartely my "Student Loan" was infact 4-5 seperate loans and I'm paying all five off each month? I've requested statements and an explaination from the SLC which there sending. I'm sure I'll get to the bottom of this but I never had to apply 4-5 times for loans. Just once?

I'll post back when I've got the info and explain just incase anyone else has a similar problem in the future.

Oldernotwiser

isibbot wrote: »

you are correct, I havent lept in salary by 20k (more the pity). But my monthly payments are high because appartely my "Student Loan" was infact 4-5 seperate loans and I'm paying all five off each month? I've requested statements and an explaination from the SLC which there sending. I'm sure I'll get to the bottom of this but I never had to apply 4-5 times for loans. Just once?

I'll post back when I've got the info and explain just incase anyone else has a similar problem in the future.

You pay the same amount back, whether you have 1 loan or 5, for £5,000 or £50,000; repayments are based solely on your income. If your repayments amount to more than 9% of your income over £15,000, then there's been a mistake.