Student Loans 2012

Lokolo

setmefree2 wrote: »

From

http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/DG_194804



I love the way they haven't mentioned that inflation is RPI. RPI is currently 5% plus 3% - that is 8%!!!!!

Hmm I am rather surprised at that, the previous reports indicated it would just be RPI rather what's displayed currently. I don't think that is fair.

I wouldn't be surprised to see commercial loans start popping up for students.

setmefree2

Lokolo wrote: »

Hmm I am rather surprised at that, the previous reports indicated it would just be RPI rather what's displayed currently. I don't think that is fair.

I wouldn't be surprised to see commercial loans start popping up for students.

Lokolo I know we've had our differences but this is scandalous. I'm not misreading it am I? That's what it says, doesn't it?

Lokolo

setmefree2 wrote: »

Lokolo I know we've had our differences but this is scandalous. I'm not misreading it am I? That's what it says, doesn't it?

Yep. Assuming RPI stays at 5% by the time this happens. Very expensive during the course, and for courses like medicine it just makes it stupid. Less students studying for medicine means higher salaries (NHS costs rising) which means more money from everyone else. Same for teachers as well.

setmefree2

Loan interest rates

Interest is charged on your loan while you’re studying. Until you start repaying the loan, interest is charged at the rate of inflation plus three percent.
When you're due to start repaying your loan the amount of interest you're charged depends on how much you earn.
You will be charged the following rates of interest:

• if you earn less than £21,000 – interest at the rate of inflation
• if you earn between £21,000-£41,000 – interest at the rate of inflation plus up to three per cent
• if you earn over £41,000 – interest at the rate of inflation plus three per cent

I'd also like to highlight this bit!!!!! If you are unemployed the loan will be adding interest at RPI + 3%. At current rates it would be adding £3300+ pa. !!!!

melancholly

setmefree2 wrote: »

I'd also like to highlight this bit!!!!! If you are unemployed the loan will be adding interest at RPI + 3%. At current rates it would be adding £3300+ pa. !!!!

this is just mad.... and really hasn't been made clear before. i think everyone expected the rate of interest whilst unemployed to be the same as the rate at just over the threshold. it makes no sense, no sense at all!

i get that RPI will change and that there's a whole arguement over RPI and CPI and all that.... some inflation measure makes sense on a loan repaid over such a long time, but this is terrible. the devil is always in the detail over changes like this to the loans system and i cannot believe that this was passed by parliament..... this hasn't captured the public like the NHS reforms and it's too late now.....

it's like watching HE be dismantled before my eyes. (i'm in shock - this has not been anywhere that i've read info before)

(i particularly like the first sentence of the directgov page "If you’re starting a higher education course at university or college after 1 September 2012, you may pay more for tuition." May?!?! everything will be more expensive after that date.... to suggest anything else is a staggering misrepresentation of the situation.

*must step away before i launch into a rant on irresponsible spin that borders on lies.... and i thought new labour was bad*

setmefree2

melancholly wrote: »

this is just mad.... and really hasn't been made clear before. i think everyone expected the rate of interest whilst unemployed to be the same as the rate at just over the threshold. it makes no sense, no sense at all!

Presumably if you do a masters or Phd the loan attracts interest at RPI + 3% also?

Taiko

Will have a word on this, as it's not agreeing with everything else I've heard. I'm hoping something has been lost in translation. That, or the government plan to recoup the repair bill for the riots damage.

The_One_Who

Interest has always been charged from the start of the loan. The problem here seems to be percentage they are charging, and I agree with the others that it seems mad. Hopefully there has been a mistake somewhere, which isn't completely outside the realm of possibility.

setmefree2

Taiko wrote: »

Will have a word on this, as it's not agreeing with everything else I've heard. I'm hoping something has been lost in translation. That, or the government plan to recoup the repair bill for the riots damage.

Maybe it's a typo? I've left them some feedback to that effect on the feedback section at the bottom.....

http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/DG_194804

setmefree2

The_One_Who wrote: »

Interest has always been charged from the start of the loan. The problem here seems to be percentage they are charging, and I agree with the others that it seems mad. Hopefully there has been a mistake somewhere, which isn't completely outside the realm of possibility.

I have to agree, it's mental. How can you charge an unemployed ex student more interest than someone earning £20k.

Maybe they are trying to force students to take "any old" job?