Student Loan Debts - How do you view these?

K9cuddles

I didn't know about a 25 year deadline.. I thought it was until you where 65? Is this on the SLC website?

Headintheclouds_3

lynzpower wrote:

How do I view student loans?

LIke on massive millstone. Im almost at the end of mine, owe 600, and I started Uni 10 years ago coming september. Cant wait for it to be paid off.

Heh, I sympathise - it'll be 15 years since I started Uni when I'll have finally paid off mine! A decade and a half to pay off a few beers!...and the rest

Agree with most of the posters here that it's usually near the bottom of the debt priority list when you've got the dreaded credit card:eek:

(I only started reading MSE at the weekend and you're all a huge inspiration to being DFW, as well as having made me smile with some of your posts)

november

K9cuddles wrote:

I didn't know about a 25 year deadline.. I thought it was until you where 65? Is this on the SLC website?

I've just spent a while looking for an old thread http://forums.moneysavingexpert.com/showthread.html?t=193278

and found my post on it:

I've just checked with Students Loan Company page for the date my loan was taken out and it says:

Quote:
Any loan you have not paid back will be cancelled if you die. If you have kept up your repayments , any loan you still owe will usually be cancelled after 25 years or when you reach the age of 50, whichever is the earlier. If you last borrowed when you were 40 or over, it will usually be cancelled when you reach the age of 60. Your loan will be also be cancelled if you are permanently unfit for work as a result of disability.

However now I go to the link I can't find where on the SLC that quote came from

http://www.slc.co.uk/noframe/lr/index.html

I had to have some reason to look forward to being 50 :mad: The only thing I can find on their web site now says 65

In answer to the OP. No I don't worry over it, no I don't think I should have to repay it although I will if I ever earn enough ....... oh and no I've never earned enough to repay it

Glitterari

I don't worry about it because I'm am paying off the more urgent debts before I go back to uni for my MA. When I am doing the MA, although I intend to do a part time job, I will be earning well under the threshold to pay anything back.

By the time I finish my MA, I will be nearly 28 (2 years away) - with no pension or savings. Therefore, I will be putting money away for a pension and saving for a deposit on a house, as to me this is more important.

I am hugely proud of myself for clearing my credit card, loan and car HP in a year so that I can go to uni 'debt free'. This has also meant that with my bursary and OH's earnings, we can rent our own place when I'm at uni so I will retain my sanity too!

K9cuddles

november wrote:

I had to have some reason to look forward to being 50 :mad: The only thing I can find on their web site now says 65

lol.. I guessed they upped it on the sneaky!!

Repayments on any loan that are not yet due will be cancelled if you die. If you have kept up your repayments, any loan you still owe will be cancelled when you reach 65 or if you become permanently disabled.

Ooo.. just found this FYI

ICR Predictor: If you want to know when your student loans will be repaid.

All you have to do is contact us in writing or by telephone and explain that you would like to know when you are likely to finish repaying your student loans.

The HM Revenue & Customs (previously known as the Inland Revenue) will normally have already advised us exactly how much has been deducted through PAYE in the previous year tax year but the more accurate information you can provide the more accurate any resulting prediction is likely to be.

When writing please ensure that you enclose your latest P60 if available along with enough pay slips (probably three) to establish how much is being deducted each month from your salary and any other information to help us to be as accurate as possible. When phoning please have this information to hand.

afro_2

vishpatel wrote:

probably because you've changed address?

No, they know exactly where I am.

They've just got no idea where my payments are, and have confirmed this over the phone. I'm on the newer, out of wages like tax payments, and it's probably the IR at fault.

tireesix

My DH is long term sick, we were homeless one year and the deferrment form wasn't exactly at the front of the que when it came to thinking about stuff. Now, despite being unable to work and on benefits, they are making us pay it back.

waterbaby

afro wrote:

No, they know exactly where I am.

They've just got no idea where my payments are, and have confirmed this over the phone. I'm on the newer, out of wages like tax payments, and it's probably the IR at fault.

I send them a photocopy of my P60 each year as soon as i get it. Then I get a letter back which thanks me and tells me what my new balance is.

I did this because when I phoned saying I hadn't had a statement for two years, they said they hadn't heard from HMRC (IR at that time) and I should sent the P60 direct to them, with my account number. A bit of hassle, but this way I get what I want.

dinkylou

md_14uk wrote:

Apologise for the long reply... if it doesn't make total sense give me a shout and i'll try to explain things better...

The current interest rate on SLs is 2.4%, for this reason this should probably be the last debt you pay off. No doubt the 0% overdraft will gradually become chargeable as you're no longer a student.

The current rate is 3.2% not 2.4%.

Whilst still smaller than other loans the interest still adds up and doesnt go away.

My view is that even though its cheap, its still debt.

Get rid as soon as you can but if you have other debts, they go first.

I worked out that at my current salary (which isnt tiny) I'll be 34 before I pay it all off. No thanks, its got to go.

waterbaby

dinkylou wrote:

The current rate is 3.2% not 2.4%.

Whilst still smaller than other loans the interest still adds up and doesnt go away.

My view is that even though its cheap, its still debt.

Get rid as soon as you can but if you have other debts, they go first.

Yes, but if you can get a savings account that pays above 3.2% net, you are better off keeping the money (beyond what you have to pay).

I have a student loan debt of £3600 at the moment. 3.2% means that it will cost me £115.20 this year. I could clear it any time now, I have the money available. However, it is sitting in an ISA earning 4.75% - earning me £171.

Therefore I am £56 better off this year as a result of not paying it off.

I'd love to pay it off and be rid. Realistically I could be 40 when I'm done with it. But I will always pay the minimum as long as I earn money by keeping it. I suppose it is a form of stoozing, take the SLC's money and invest it at a higher rate than they are charging.