MSE News: Student loan interest rate could fall for hundreds of thousands

Helix

antonia1 wrote: »

This seems to say that there will be different repayment thresholds for 98-2011 loans and 2012+ loans.

That was my understanding of it too, but I don't know how employers will know what threshold you are on as Poolie says.

setmefree2

gadgetmind wrote: »

6.6%pa - they are having a larf!

Originally Posted by Epicllama
As the mother of a potential medical student in 2013, this sort of possibility just fills me with horror.

The student loan system is working like some sort of "reverse teaser" system.

With a teaser loan system the borrower pays a very low initial interest rate, which increases after a few years. Teaser loans try to entice borrowers by offering an artificially low rate initially which then rise rapidly aften the teaser period finishes.

With the student loan system - it's the reverse. The borrower/student pays/is charged a high initial interest rate, which decreases after a few years. The government must be trying to deter borrowers from taking the loan by offering an artificially high initial rate.

Just like borrowers taking out a teaser mortgage would have be been better to focus on the rates over the whole of the borrowing period; students should focus on loan rates over the whole of the 30 years imho.

6.6% is crap but when RPI was 5+% not so long ago it could have been so much worse......

setmefree2

gadgetmind wrote: »

We're in the same boat as daughter has an offer to take medicine at Nottingham.

£9k+£5.5k pa, for five years, at over 6% interest - what a splendid way for UK Plc to thank her for her hard work!

Originally Posted by Epicllama
As the mother of a potential medical student in 2013, this sort of possibility just fills me with horror.

The 6.6% is only for this academic year. It could be higher/lower in year 2,etc..... right at the moment most analysts seem to think that inflation risks are all to the upside....

setmefree2

MSE DAN

I'm reposting this from another thread

MrsAverage wrote: »

"We advised our DS to pause his application when we realised that t&cs were not yet finalised. I have today just been back to his application with him from where you can access t&cs and it's no surprise to find it still reads
"If you: • are starting your course on or after 1 September 2012 and;- live in England or Wales; or- are an EU student funded by England or Wales. You will, subject to Parliamentary approval of new legislation which is due to come into force by 6 April 2012, be on Repayment Plan 2 – look out for the pink boxes as this information applies to you. in an amended format If Parliament does not approve the new legislation then you will be on Repayment Plan 1."
So, even though it was supposed to be passed on 6th April does anyone know if it actually was?

By the way, the page then goes onto say for futher info link to the student loans repayment company - but that only has t&cs for the old style loans.

I think the only way to get to these so called t&cs are via the loan application process, but you might find this link works
http://www.studentfinance.direct.gov...TIONS_1213.PDF"

Any comments?