Student Loan 2015 Discussion

melancholly

milkorplain wrote: »

Clear and concise for a parent of a soon-to-be-a-student son. Awaiting with interest govt. decisions on early repayment. Will penalties be designed to prevent wealthy-background people from getting an advantage (when left a legacy by an elderly aunt) OR are they to make sure that the loan companies do not lose out?

well for loan companies, read government (as the SLC is a government body) or perhaps some people would say taxpayers...... it is probably to milk a bit more money from them but also a concession to the LibDems to make sure that those with money help subsidise those without.

gadgetmind

milkorplain wrote: »

OR are they to make sure that the loan companies do not lose out?

The loan companies only lose out if the debt ends up being written off, which is why HMG are reluctant to prohibit early repayment: commercialisation of the loans relies on high earners and/or people paying off the loans early because they don't like debt.

roj55

This is by far the best such calculator I have found, so thanks very much!

BUT its default assumptions and methodology are still very suspect. For example, take teaching - hardly known for spectacular pay rises. A teacher outside London starts on £21,102 per annum but routine annual increments should increase this to £35,929 after 10 years, i.e. more than 6% per annum IGNORING annual pay awards and promotions. Even with no promotions or further increments, the annual increase IGNORING annual pay awards is much closer to 2% than 1%, over the 30 year life of the loan.

The effect of increments such as these is repayments that are well above twice those predicted by the calculator, so by all means use the calculator, but please remember its limitations!

Nushie

Hi, I've just started a Social Work degree at a college PART TIME, and as I applied quite late I discovered upon enrolment that the last year of the course (the fourth year) will be changing from PT to FULL TIME and held at a different institution (The MMU). I am now very confused about whether or not to continue with this course merely because of a financial issue - I am NOT eligible for student finance because I already hold an honours degree, therefore I will be liable to pay the tuition fees, and although the fees for the first three years at college will be covered by the NHS Bursary (just had a letter to confirm that I am eligible too), I am not sure that the full-time bursary will cover (or nearly cover) the changing tuition fees of up to £9K in that final year at MMU!?!

If the majority of the tuition fees will NOT be covered by the NHS Bursary, then I do not know how I will pay my fees without the help from Student Finance. I do know about the Career Development Loan, but I really don't think I'll be accepted for one (as mentioned by the Student Services contact at college) as I am 32 years of age with a fair few grand of debt already attached to my credit file that I have not been able to pay off due to being made redundant early this year!

I just want to better myself. My first degree is now not enough to qualify and I have been working full-time ever since then so have only just found it in my heart to follow my ambition after being made redundant.

I really hope someone can help me or give me any other ideas?

Oldernotwiser

Nushie wrote: »

Hi, I've just started a Social Work degree at a college PART TIME, and as I applied quite late I discovered upon enrolment that the last year of the course (the fourth year) will be changing from PT to FULL TIME and held at a different institution (The MMU). I am now very confused about whether or not to continue with this course merely because of a financial issue - I am NOT eligible for student finance because I already hold an honours degree, therefore I will be liable to pay the tuition fees, and although the fees for the first three years at college will be covered by the NHS Bursary (just had a letter to confirm that I am eligible too), I am not sure that the full-time bursary will cover (or nearly cover) the changing tuition fees of up to £9K in that final year at MMU!?!

If the majority of the tuition fees will NOT be covered by the NHS Bursary, then I do not know how I will pay my fees without the help from Student Finance. I do know about the Career Development Loan, but I really don't think I'll be accepted for one (as mentioned by the Student Services contact at college) as I am 32 years of age with a fair few grand of debt already attached to my credit file that I have not been able to pay off due to being made redundant early this year!

I just want to better myself. My first degree is now not enough to qualify and I have been working full-time ever since then so have only just found it in my heart to follow my ambition after being made redundant.

I really hope someone can help me or give me any other ideas?

Your tuition fees won't change part way through the course if you've started before 2012, so the NHS bursary will cover them.

Nushie

Oldernotwiser wrote: »

Your tuition fees won't change part way through the course if you've started before 2012, so the NHS bursary will cover them.

Thank you for your reply, but how sure are you about this? The only reason I ask is because I spoke to a finance manager at the Man Met University last week who confirmed to me that because our course will be taken at Stockport College for the first three years and then will change to full-time at the MMU for the final fourth year, that the new fees will kick-in as it's a new study mode and new institution regardless of the fact that my course started before 2012! I find this really unfair and this lady asked me to write an email explaining my situation to her and detailing my query - which I did - but have still not had a proper reply. I called her yesterday and she said they are still escalating it and discussing it. I just don't think anyone seems to be able to give me a straight and accurate answer!

Hope there's another way.

Thanks for your input

Oldernotwiser

Nushie wrote: »

Thank you for your reply, but how sure are you about this? The only reason I ask is because I spoke to a finance manager at the Man Met University last week who confirmed to me that because our course will be taken at Stockport College for the first three years and then will change to full-time at the MMU for the final fourth year, that the new fees will kick-in as it's a new study mode and new institution regardless of the fact that my course started before 2012! I find this really unfair and this lady asked me to write an email explaining my situation to her and detailing my query - which I did - but have still not had a proper reply. I called her yesterday and she said they are still escalating it and discussing it. I just don't think anyone seems to be able to give me a straight and accurate answer!

Hope there's another way.

Thanks for your input

I've never heard of fees changing because of the change of study mode so I apologise if I've advised you incorrectly.

I'll try to find out something about it or, hopefully, Taiko (our resident student finance expert) may know the answer.

Nushie

Thanks ever so much. Really appreciate it x

crossref

Martin, you article says that loans are cancelled after thirty years -- do you have a source for that? I have read through the direct.gov and studentfinance websites and couldn't find anything about loan cancellation under the new 2012 scheme.
Prior to 2006 cancellation is at 65
Under the current scheme it's after 25 years
Wondering where the '30 years' comes from

Oldernotwiser

crossref wrote: »

Martin, you article says that loans are cancelled after thirty years -- do you have a source for that? I have read through the direct.gov and studentfinance websites and couldn't find anything about loan cancellation under the new 2012 scheme.
Prior to 2006 cancellation is at 65
Under the current scheme it's after 25 years
Wondering where the '30 years' comes from

http://www.bbc.co.uk/news/education-11483638

http://services.parliament.uk/hansard/Lords/bydate/20110915/writtenanswers/part016.html