Student Loan Annual statement

Mich973

Good Morning.

I have just had my annual statement in and was a bit shocked. I did a three year degree but had to redo my third year, which was funded - so basically I have 4 years of student loans. So I was expecting it to be around £25k but the total is £23.5k.

What I wasn't expecting was interest at around £25 per month all through 2011 and at £30 per month for 2012.

At the bottom it says "due to enter repayment on 06/04/2012 - £21,447.18" and "due to enter repayment on 06/04/2013 - £2056.18"

I thought interest doesn't start until after I complete and graduate, which is June/now. And I wasn't expecting it to be £30 per month - I am going to have to earn a fortune just to clear the interest payment each month before hitting the borrowed amount.

Anyone out there know if this is correct ?? or anyone else had their annual statement ??

Thanks.


Mich.

Lokolo

Yes it is correct.

I'm not sure why you weren't expecting it? Did you not read the details of student loan before?

£30 a month is 1.5%, it's very cheap. You don't have to be earning a fortune to pay it off, around £19k before you start paying off £30 a month.

Poolie

Mich973 wrote: »

Good Morning.

I have just had my annual statement in and was a bit shocked. I did a three year degree but had to redo my third year, which was funded - so basically I have 4 years of student loans. So I was expecting it to be around £25k but the total is £23.5k.

What I wasn't expecting was interest at around £25 per month all through 2011 and at £30 per month for 2012.

At the bottom it says "due to enter repayment on 06/04/2012 - £21,447.18" and "due to enter repayment on 06/04/2013 - £2056.18"

I thought interest doesn't start until after I complete and graduate, which is June/now. And I wasn't expecting it to be £30 per month - I am going to have to earn a fortune just to clear the interest payment each month before hitting the borrowed amount.

Anyone out there know if this is correct ?? or anyone else had their annual statement ??

Thanks.


Mich.

Interest starts the moment you took your first loan payment will continue till the loan has been repaid.

Your original 3 years of study have entered repayment but the repeat year does not enter till next. This is going to mean you will have a loan which is a year behind an earning SLC interest a year longer.

Annual Statements for those entering repayments will have been issued to give you a starting point for April. Otherwise graduates will not receive a statement till either a return has been received from your employer via HMRC (usually around August - December) or SLC apply a file to show no repayment in the February.

Person_one

Lokolo wrote: »

Yes it is correct.

I'm not sure why you weren't expecting it? Did you not read the details of student loan before?

Did any of us? :rotfl: