Student Loan 2015 Discussion

The_One_Who

I'm not really expecting them to save money either, but they've obviously gone with it now and is there really a way back? I don't think so. With places like LSE and SOAS losing 90-100% of their grants, they don't really have much option but to charge the fees.

I would love for there to be more money for and more acceptance of other avenues to training and/or work, I really, really would. And I think the National Minimum Wage for an apprentice is absolutely scandalous, but that's a different issue.

I too don't like the idea of university mergers, massive restructures or closures. I don't think they help students or staff. I know a lot of colleges are having to go through a lot of mergers right now, at least up here, and then there is the whole Dundee debacle.

yertiz_2

Just found this on BBC website for 'Inside Out London, I don't think it's been quoted on here previously, take a look; I found it very interesting.....

http://www.bbc.co.uk/programmes/b016fz98/clips

setmefree2

yertiz wrote: »

Just found this on BBC website for 'Inside Out London, I don't think it's been quoted on here previously, take a look; I found it very interesting.....

http://www.bbc.co.uk/programmes/b016fz98/clips

Thanks. Alvin does a good job.

http://www.bbc.co.uk/programmes/p00lcx0m

MrsAverage

Does anyone know when the results of the 'consultation on paying off sums early' are due?

Applications for this years loans open in next couple of weeks and I can,t believe they're asking kids to sign up for something when not all the terms and conditions are known yet.

Can_anyone_answer_this?

Hiya, not sure if anyone has posted about this yet but I can't seem to find out answers from anywhere!

I have a student loan already from a degree I did between 2004-2008, so currently pay back 9% of earnings over £15K. My interest is linked to the base rate.

I am now planning to go back to university to do a PGCE and unfortunately do not qualify for teaching bursary, so will be taking out the full loan for tuition fees and maintenance loan (due to my low income and independent status).
With this loan, the terms are to pay 9% of earnings over £21K with interest linked to inflation and, at times, above it.

So what happens when I complete my PGCE and am earning again?
When I make a payment will it be when I am earning over £15K or £21K?
Which loan will it clear first?
This will have quite a difference on the total interest I will pay and therefore how long it will take to clear the loan (if ever).

If these were normal loans I was clearing, I would pay off the one with the higher interest first and then the lower interest. As it comes directly out of my pay, I am guessing I will not have a choice in the matter.

If taking out the new lending rewrites my old loans t&c's and puts everything on a new agreement (like debt consolidation does, for example), then this would mean increasing the interest on a £20K loan to above inflation - not a wise decision!

No one seems to be able to give me a clear answer on these questions and I have been doing a lot of research to try and find out.

Can anyone here help please?

Cat2011

Can_anyone_answer_this? wrote: »

So what happens when I complete my PGCE and am earning again?

I am doing a similar thing. My assumption was that the two loans are treated completely seperately. Same as if you had a loan from 2 different banks. So you'll be paying back 9% over 15k on loan 1 and 9% over 21k on loan 2.

The maths is probably a bit wrong, as I'm not sure whether it's before or after tax etc., but if you're on 25k - you'll pay back £75/mth on loan 1 and £30/mth on loan 2.

setmefree2

MrsAverage wrote: »

Does anyone know when the results of the 'consultation on paying off sums early' are due?

Applications for this years loans open in next couple of weeks and I can,t believe they're asking kids to sign up for something when not all the terms and conditions are known yet.

Nothing yet as far as I know Terrible.

Poolie

The £15k threshold is slowly going to start rising and the Government are hoping by the time students who will be starting to repay in April 16 that the threshold will have risen to £21K. You would be expected to make one repayment of 9% from your salary at the current threshold as defined by the Education (Student Loan) Regulations 2011 which will be based on the increasing threshold as calculated by inflation. Especially since the PGCE is a one year course (when completed full time) and therefore you would not be entering repayment on that loan at the normal time of student completing a 3 year degree course.

gadgetmind

MrsAverage wrote: »

Applications for this years loans open in next couple of weeks and I can,t believe they're asking kids to sign up for something when not all the terms and conditions are known yet.

I drifted past here to make exactly that point.

Would HMG do if some scummy sharks were flogging loans at RPI+LOTS to children without telling them if/when/how they could repay them early?

I can't believe Mr. Lewis is sitting back and quietly letting this happen.

I can feel a letter to my MP coming on ...

Lokolo

gadgetmind wrote: »

I drifted past here to make exactly that point.

Would HMG do if some scummy sharks were flogging loans at RPI+LOTS to children without telling them if/when/how they could repay them early?

I can't believe Mr. Lewis is sitting back and quietly letting this happen.

I can feel a letter to my MP coming on ...

Well the money doesn't get paid until they start, and if it turns out early repayment ends up having charges etc.etc. you can change circumstances and cancel the loan.

http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/Gettingstarted/DG_171586