Career Development Loans 2006/07 article Discussion Area

zeus1234_2

hi all,
I took out a career development loan with baclays quite a few years back. Unfortunately while on the MSCE course the institute went bankrupt and closed down. Baclays said they would be requesting payment in 3 months time from that date. i then proceeded to pay off the loan on a monthly basis which i was doing quite well until last year. Was out of work and stumped called up barclays. They gave me a one month interest free period and told me my account would be passed to debt collection. Amount was £1658 at 12.9%, this was in August last year. i have not heard from Barclays since then. i have ignored the loan all this time but i have just got a good enough job to finally face this debt.
Would like to know ideas on best way of handling this, scared to take out another loan due to my credit rating. All advice would be graciously accepted.

Money saving virgin

onlyone-jc

Hi.

I don't have a CDL, but am considering applying for one as I make a career move.

However, does anybody know if CDLs are classed as income and whether they are taxable income at that? I'm just doing an income forecast and I'm not sure whether to include the CDL figure when calculating my tax.

Thanks,
onlyone-jc.

akadiago

Hi guys, have been looking round the site for a while now and thought it about time I got down to some posting :-)

Ok I really need some help here.

I have the money for fees, rent and very basic living sorted (just food no fun :-( ) but this means I can take up my place at uni so its all good.

I was thinking can I still get out a CDL and make some money from it?

What I'm not sure about is, can I take one out, agree on the term etc, and then pay it off the min I get out of uni. Therefore all interest being paid by the government and leaving me with all the interest made from my savings account?

Thanks for the help

Em445

hello ianianian,

depending on how much you have left to pay, an idea is to take out a 0% credit card but make sure it is one that has no interest charged for advance cash from atms and doesn't charge you for spending on it for 6 months, there are a few around, and take the cash out bit by bit to pay it off, you can get £300 a day from most credit cards and more over the counter depending on the bank. It might be a bit laborious but they're sure to take cash to pay it off and I don't think this will have any detrimental effect on you... just an idea!

Em445

daviddcsnk

Hi, I took out a CDL with Barclays last September and I am due to begin repayments in November, I'm just trying to get my head around what i will actually pay back. Its more the wording which has me stumped. I'm going to go into Barclays when I next get a chance but thought someone on here could clear it up for me.

This is is key financial information for my loan:
APR : 9%
Amount: £7948
Repayments: 60
Total Amount: £10795.20
Total Charge for Credit: £2847.20

I understand all this, but its the next bit that has me abit baffled. This is how it is worded exactly: " No interested will be charged for the period from the start of this agreement until one month before the first monthly payment is due. From then on, interest at a rate of 12.9% p.a will be calculated daily on the balance outstanding and debited to the account quarterly in arrears until the loan is repaid is full."

Now from the way this is worded, I take away from this that once they start charging interest, they do so on the full loan of £10795.20 + 12.9%? Its the debited to the account quarterly that has made me think that they will do this. Or do I only repay the £10795.20?

Thanks very much for any advice for help given.

David

Oldernotwiser

I think it just means that they'll be charging 12.9% on the £10,795 loan, starting in November and that they'll add the interest on quarterly.

theo125

Has anyone tried to pay off a CDL early - (I was plannning on following Martin's advice and getting one, paying it off before interest kicks in) th but is there a clause stopping this? i was about to sign the contract with the co op when i saw i was signing to say that i would agree to pay interest on the loan - i phoned the bank and they said there was no penalty for early payment but that i couldnt have it in writing and referred me back to Learning development council - who referred me back to the bank - any advice?

Oldernotwiser

theo125 wrote: »

Has anyone tried to pay off a CDL early - (I was plannning on following Martin's advice and getting one, paying it off before interest kicks in) th but is there a clause stopping this? i was about to sign the contract with the co op when i saw i was signing to say that i would agree to pay interest on the loan - i phoned the bank and they said there was no penalty for early payment but that i couldnt have it in writing and referred me back to Learning development council - who referred me back to the bank - any advice?

What would be your alternative to a CDL?

annaharri

Hi, I have just started a 5 year medical degree as a graduate, and as such am not entitled to a loan for fees from the SLC. I am ineligible for a CDL as I can get a loan for maintenance. This leaves me with the only option of getting a Professional Studies Loan for my fees from Natwest.
Can anyone advise me whether it is better to get a fixed or variable rate for interest? I have no idea what the best option would be! Help!

davidword

Does bankruptcy clear a Career Development Loan debt, or is it considered a normal student loan and excluded from clearance?