8 years post grad and still no SLC loan repayments - wierd?

CLAPTON

ILW wrote: »

Depends whether its a proper degree or one of the mickey mouse ones in basket weaving or similar.

I did say 'most'
and even so 15,000 pa is not a massive salary even for non-graduates

vaporate

CLAPTON wrote: »

I doubt that we will reach the situation where most graduates etc will earn less that 15,000 pa for the rest of their careers.

Maybe not just earn 15k, but you would need around 23k to pay the loan off. (Depending on individual circumstances)

Example, student loan worth 3k for 3 years of tuition fees and let's say 4k a year for 3 years for accommodation, that is 21k already, plus food, bills, travel, books ect, let's say 25k.

I worked it out that it would take 23k per annum to pay the loan off, including interest on the loan. (Using the calculator on MSE)

If I just earned 15k to 18k per annum for the rest of my life, the student loan would be wiped clean by age of 65 (loan taken out 2005).

Thank god for income assessment lol (I would not of taken the student loan anyway if it was anything lik a bank loan)

I read that American federal student loans have harsher terms. Don't quote me on that though.

vaporate

ILW wrote: »

Depends whether its a proper degree or one of the mickey mouse ones in basket weaving or similar.

Mine was in Criminology/Psychology which is a academic subject as far as I am concerned.

There ARE alot of film study/media studies graduates out there though if that is what you are referring to.

No offence intended though. I believe in the 'you only live once' saying. Do what makes you happy.

celyn90

Sarahsaver wrote: »

Have you never applied for deferral? I graduated from my postgrad course in 1994 and still have never earnt enough to pay off the loans even when i was a teacher.

The income threshold for repayment was higher for "old scheme" people - so we could earn more than 15K before having to pay it back (I think it is about 25Kish although I paid mine off by choice from my PhD stipend so I'm not sure exactly) It's taken from your wages directly now rather than by direct debit from your bank like it was for me (I started uni in 1997 - the last year on the old system before the introduction of fees). I'm not sure if you still apply for deferrral in the same way any more though - they just know (or should know) not to deduct if you income is lower

seasick_steve_2

Thanks for your helpful comments and I'm sure by comparison you are a genius. Strange that those who've been in the same situation say that SLC aren't usually bothered. I'm glad I've been earning high interest on the money I could have been paying to SLC whilst the charge me no interest on my loan.

seasick_steve_2

Thanks to those who gave positive comments, I will contact HR as it sounds like it's between them and HMRC through PAYE.

Cheers

AdviceSought

Given they only take about 2% of the amount of your salary over and above 15k, why would someone decide to pay a lump sum to get rid of it early?

It is not written off upon retirement too? In the time I've been working since graduating, my paments haven't even covered the interest on the loan.

[Deleted User]

It's 9% above 15k, not 2%. That's actually quite a big chunk!

AdviceSought

Deleted_User wrote: »

It's 9% above 15k, not 2%. That's actually quite a big chunk!

Oops, 9%, even so, I think I'd still need quite a big payrise before I ever come even close to paying off my student loan.

vaporate

That is just it: You will never pay it off unless you are earning in excess of 23k per annum, depending on how much you owe of course.

I'm not too bothered as it will be written off anyway by age 65, and any extra money I get will be kept in a savings account.