Please shed some light on my student loan?

colony

Hi there, I appreciate your help.

I recieved my student loan annual statement last month.

It started in 2002 and my university course was 5 years long. I've got a decent job earning £35,000 pa.

According to the statement, last year my balance was £15325.76

Last year I paid £1666.00

Interest for the year was £548.17.

The new balance is £14207.93.

From what I've read, student loans interest are in line with inflation and therefore there is no hurry to pay it off. But it does seem like I'm being charged an awful lot of interest. (actually crudley calculated it's 3-4%).

Can anyone shed some light? Should I pay it off faster?

CLAPTON

this year sep 2009 to aug 2010 the interest rate is zero

Poolie

The statement will have covered the period April 2008 - March 2009.

Interest rates for this period were:
April 2008 -> 1st September - 4.8
1st September -> 4th December - 3.8
5th December -> 8th January - 3.0
9th January -> 5th Febuary - 2.5
6th February -> 5th March - 2.0
6th March -> 5th April - 1.5

Based on your repayments and balance the interest appears to be correct.