student loan interest

zar

The second one - i.e. if you borrow £1000 then you will owe £1024 at the end of the year. Actually it will probably be less than £1024 whilst you are actually at uni as they would give it to you in 3 lots and as the interest is calculated daily I guess it would be about £1014 at the end of the first year - so the daily thing works in your favour.

I am not sure about when you get to paying it back how the daily bit works though - the money goes out with your tax each month but I think the SLC don't get it straight away and perhaps only once a year. It's no wonder they never know how much you owe them!

jimclark1967

zar wrote:

I am not sure about when you get to paying it back how the daily bit works though - the money goes out with your tax each month but I think the SLC don't get it straight away and perhaps only once a year. It's no wonder they never know how much you owe them!

Under the current scheme you pay back 9% of anything you earn over £15,000. This is collected by through the PAYE system but only finds it's way to the Student Loans Company once a year, so you're not even saving any interest for the first 11 months :beer:

I graduated last summer and my loan balance stands at £11k. Yet to pay a penny off and I'm in no hurry to change that - any spare cash goes into regular savers earning 8-10% :cool:

JC