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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 per cent.
When you're due to start repaying your loan the amount of interest you're charged depends on how much you earn.
uni_worker wrote: »
Hi Martin, the Daybreak website has a major typo on it;
- The new system only affects those STARTING university or college in September 2011
- Existing students and those starting in September 2011 stick with the current system
The first bullet should read 2012 (I hope!)
You mention that the current fees are £3,290, but for 2011 they are going to be £3375, we don't want students coming in September thinking they will be getting charged the lower amount.
Thanks for doing the guide, it will really help us explain the situation to future applicants.
Lokolo wrote: »
Another thing I am not 100% on, is that on DirectGov it states the interest rate is RPI + 3% until you start repaying not until you graduate, which is what you have stated in Section 6.
So those that are unemployed or earning under £21k after university will continue to be charged RPI + 3% rather than going to the RPI rate for earning less than £21k, even though the rates are RPI for those earning under £21k and states on the next line on that it is based upon when you can possibly earn rather than when you start repaying.
Although I believe you are right and the DirectGov website is incorrect, it is meant to be the official website...
Seems like a very contradictory paragraph.
MSE_Wendy wrote: »
Hi Lokolo, there's more info on this Student 2012 Direct.gov page, which we've verified, but thanks for mentioning, just in case!
property1925 wrote: »
I work in a Univ admissions office and we are really in the dark about how the scheme will work in practice. E.g.
1. Can you repay early or are you locked in for 30 years?
2. May a student pay their own fees for (say) one year and then take out a loan for the remainder?
We have, however, noticed a sharp increase in people telling us that they are not coming, or that it "is not worth it" because of the fees
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