New! Student Finance Calculator 2012

setmefree2

I've reposted your post here

http://forums.moneysavingexpert.com/...3910547&page=2

to see if we can get a comment from MSE.

MrsAverage

with no reply from MSE, or any other knowledgeable person, I have today raised this matter with our MP in the hope he knows what's going on in Parliament

setmefree2

MrsAverage wrote: »

with no reply from MSE, or any other knowledgeable person, I have today raised this matter with our MP in the hope he knows what's going on in Parliament

One can hope

Thanks from me.

MrsAverage

Our MP's caseworker is on it with the Dept for BIS. Watch this space.
By the way kids are supposed to sign up for loans by 31st May - do we think the t&c's will have been firmed up by then?

Former_MSE_Dan

Hi folks,

We've now added a new tab to the calculator for part time student finance

Dan

jennstar_2

Also requesting a one-year full time option, please!

jago25_98

Great tool.

But I still don't like MSE promoting debt with assumptions based on inflation and rising wages.

Personally I'm expecting inflation to increase and be sustained in real terms but this not to be reflected in RPI. That's great for loans, making them much cheaper as the gov cooks the books.

However, having a debt hanging over ones head isn't very inspiring. It will always follow you round the world and has been sold to debt rendering in the past. We've had people in the middle of nowhere in New Zealand and have a letter drop their door from bailiffs because the deferral request didn't go though. Think about that.

I'm not saying taking out a loan is not a good idea. I'm just saying that people should understand that they are taking a gamble and only if the gamble is in our favour is it worth it. Do not take the gamble if the qualification isn't going to give you a return. If you don't get a high enough wage you'll never pay it off and the gov, future governments and anyone who wishes to buy your debt will have one over on your forever more.

A debt is a debt. It's one thing to invest in skills that employersa across the globe want. It's another to borrow simply to prop up the economy, delaying the inevitable. Trust the opinions from small people like me, don't trust big media on this.

mary

Having just read this thread from the start, I'm now in a situation like some of you were this time last year, wondering whether to pay up front for my son as I can, or whether to take out the loan. The problem is getting a true answer as to how much he will repay.

I am not able to work out a spreadsheet putting all the imponderables in, so wondered whether anyone here could come up with any figures which in any way match the wildly differing figures I have found on MSE calculator, Complete University Calculator, Student Loans Direct Gov Finance Calculator.

£9000 tuition fees, £7675 for studying in London and 3 year course.
Assume starting salary £25K. Using all default figures.

http://www.thecompleteuniversityguid...ent-calculator.
It says Total Repayments £78,777

http://www.moneysavingexpert.com/stu...nce-calculator
It says What you Repay £40,570

http://www.studentfinance.direct.gov...alculator.html
It says Total Amount Repaid £159,899

I would seriously appreciate it if someone could do the spreadsheet for me and PM me. Thanks in advance

DAISYDOG

Calculator does not give the same result as the government one(below)

Student Loans Repayment Calculator
1 Tuition fee loan amount borrowed this year? £9000
2 Maintenance loan amount borrowed this year? £3750
3 Course Length? 3 Years
4 Expected starting salary on graduation? £27500
Estimated Results
First monthly repayment:
Monthly repayments will vary depending on your salary £41.33Repayment start date:April 2017Time to repay: 21yrs 0mthsTotal amount borrowed: £38,250Total amount repaid: £92,857
Estimated Future Repayments
£92,857 paid back over a 21 years period


Year Loan Amount Annual Repayment Annual Interest Rate
0 £43,525 £496 4.39%
1 £44,930 £946 5.04%
2 £46,226 £1,420 5.66%
3 £47,386 £1,846 6.16%
4 £48,408 £2,234 6.56%
5 £49,283 £2,694 6.6%
6 £49,761 £3,109 6.6%
7 £49,843 £3,493 6.6%
8 £49,535 £3,974 6.6%
9 £48,711 £4,303 6.6%
10 £47,495 £4,678 6.6%
11 £45,812 £4,976 6.6%
12 £43,710 £5,319 6.6%
13 £41,117 £5,654 6.6%
14 £38,008 £5,890 6.6%
15 £34,450 £6,229 6.6%
16 £30,309 £6,685 6.6%
17 £25,424 £7,034 6.6%
18 £19,858 £7,114 6.6%
19 £13,842 £7,486 6.6%
20 £7,046 £7,277 6.6%
Interest is included in the calculation above:

Retail Price
Index (RPI)3.6%+ interest rate based
on your salary0.79%=4.39%






the student loan company does not pick up the phones and do not have an e-mail even though
They have an obligation per section 6(c)of the The Electronic
Commerce (EC Directive) Regulations 2002 to list an email address.
This requirement is not optional.

I think these loans are the biggest con and misselling of a financial product ever. it is impossable to get accurate figures to compare , i think its cheaper to go to wonga

5275 pounds interest before starting to pay the loan off

Can anyone answer the questions below?


1. I want to compare with taking out a morgage at a rate of 2.2-3%. or 3.9% fixed for 10 years.
What interest my daughter will I owe at the first student loan payment .
i.e after 4 years, Based on 6.6% .for £38,200 + what interest?

2. What does the info below mean if the loan is paid off early?
phone call to advisor 2013 year start no repayment charge.


Repayment Plan 2

The Government has consulted on whether early repayment charges may apply, and depending
on the outcome of that consultation and subject to Parliament, you may incur an early repay]ment
charge.

3. I want to compare if its cheaper for me to get a morgage for 10 years at 2.2-3% or 3.9% fixed
or use my cash isas, or to take the student loan. How do i do this? If its going to be cheaper to get the money by loans from elsewhere I want to know and be able to calculate the difference.
Just like you can when you get a morgage.

4. where are the exact terms and conditions for this financial product.?
Is it misselling if I cant understand how much I will have to pay back in different scenarios. eg RPI was up to 24% in a year in the 1970s, ? What protection is built into the loan for rpi ? is there a maximum capped rpi rate? How is the interest calculated?

5. I have assume my daughter will earn the higher amount currently at 6.6%. I think she will pay back 60k over 9 years 20k interest? please confirm the exact amount .
a 10 year fixed morgage at 3.9% totals 52,600.

6. The student finance seems a big risk in terms of the lack of fixed interest rate, no calculator to show the true costs, and lack of clear terms and conditions for a financial product. am I misunderstanding the product?


7. Is the student loan payment of 9% taken out of the income before tax or after tax. my understanding is that it is after tax which means in real terms it is more like 13% of the gross income is this correct?


8. I do not need all the condisending waffle about if you earn less you may never pay it off.
It does not take much to figure out that the privilaged will pay the 6+% loan off inside 10 years, a tiny minority will not pay it off, but for the middle 20-40k earners will be paying the' brilliant' 6+% loan at 9% of their net after tax income for 20-30 years. its basicaly a 13% tax on middle earners for most of their working life..Is this correct?

9. What is the legal position regarding inheritance tax if I take out a morgage or use cash ISAS to pay my childrens University costs.?

10. One of my children is in Univercity on the 3k fees with 1.5% interest on a total loan of 27k .the other will pay 9k fees
I want to be fair to each so I need to be able to calculate the exact costs under the new and old loan system.
my thinking is i will pay all my daughters costs over 27k at 1.5% interest , but i find it impossable to calculate the difference from the info you provide. assuming they will both earn over 41k can you provide the calculations for this?

11. The student loan company does not answer the phones?

12. why do The student loan company use 0845 numbers which cost for uk students. and an 0141 number for foregn students? how much has all thw waiting on the phones cost?

Lokolo

DAISYDOG wrote: »

1. I want to compare with taking out a morgage at a rate of 2.2-3%. or 3.9% fixed for 10 years.
What interest my daughter will I owe at the first student loan payment .
i.e after 4 years, Based on 6.6% .for £38,200 + what interest?

No idea. Unless you had a glass ball where you can see what inflation will be for the next few years.

DAISYDOG wrote: »

2. What does the info below mean if the loan is paid off early?
phone call to advisor 2013 year start no repayment charge.

Ignore it, they haven't said there is an early repayment charge.

DAISYDOG wrote: »

3. I want to compare if its cheaper for me to get a morgage for 10 years at 2.2-3% or 3.9% fixed
or use my cash isas, or to take the student loan. How do i do this? If its going to be cheaper to get the money by loans from elsewhere I want to know and be able to calculate the difference.
Just like you can when you get a morgage.

Again, you can't unless you know what RPI will be. There are calculators which you have already found, why don't you compare the results of them with your mortgage rates?

DAISYDOG wrote: »

4. where are the exact terms and conditions for this financial product.?
Is it misselling if I cant understand how much I will have to pay back in different scenarios. eg RPI was up to 24% in a year in the 1970s, ? What protection is built into the loan for rpi ? is there a maximum capped rpi rate? How is the interest calculated?

Interest is calculated on a monthly basis I believe. Not sure about caps, there was one on the old loans that it cannot be more than 1% above the Bank of England base rate, but not sure if this is applicable anymore. It's not mis-selling if they tell you how interest will be calculated.

DAISYDOG wrote: »

5. I have assume my daughter will earn the higher amount currently at 6.6%. I think she will pay back 60k over 9 years 20k interest? please confirm the exact amount .
a 10 year fixed morgage at 3.9% totals 52,600.

DAISYDOG wrote: »

6. The student finance seems a big risk in terms of the lack of fixed interest rate, no calculator to show the true costs, and lack of clear terms and conditions for a financial product. am I misunderstanding the product?

Yes. It is calculated on RPI. How do you expect them to show you exactly what you will payback when they don't know what RPI will be?

DAISYDOG wrote: »

7. Is the student loan payment of 9% taken out of the income before tax or after tax. my understanding is that it is after tax which means in real terms it is more like 13% of the gross income is this correct?

It is 9% of gross income. Not sure what you are on about 13% of gross income, makes no sense.

DAISYDOG wrote: »

8. I do not need all the condisending waffle about if you earn less you may never pay it off.
It does not take much to figure out that the privilaged will pay the 6+% loan off inside 10 years, a tiny minority will not pay it off, but for the middle 20-40k earners will be paying the' brilliant' 6+% loan at 9% of their net after tax income for 20-30 years. its basicaly a 13% tax on middle earners for most of their working life..Is this correct?

It is nothing like a 13% tax, again, not sure how why you think this.

DAISYDOG wrote: »

9. What is the legal position regarding inheritance tax if I take out a morgage or use cash ISAS to pay my childrens University costs.?

Unsure about this. But generally if you die within 7 years of giving away money, sometimes it can come back for IHT, but with this sort of gift I suspect it would be unlikely.

DAISYDOG wrote: »

10. One of my children is in Univercity on the 3k fees with 1.5% interest on a total loan of 27k .the other will pay 9k fees
I want to be fair to each so I need to be able to calculate the exact costs under the new and old loan system.
my thinking is i will pay all my daughters costs over 27k at 1.5% interest , but i find it impossable to calculate the difference from the info you provide. assuming they will both earn over 41k can you provide the calculations for this?

Your previous child has a 1.5% interest rate at the moment. This can change in a couple of years or so, because again, it is based on RPI (and Base Rate).

Your second child may end up paying less.

If your second child ends up earning a lot more than the first, then she may end up paying a lot less student loan. Not sure you can really make it fair for both children in this case.

DAISYDOG wrote: »

11. The student loan company does not answer the phones?

12. why do The student loan company use 0845 numbers which cost for uk students. and an 0141 number for foregn students? how much has all thw waiting on the phones cost?

Use saynoto0845, or ask questions elsewhere, they're usually offering "Answer Your Questions" on Facebook and such.