Student Loan interest rate?

Oldernotwiser

kelloggs36 wrote: »

it still means that there is a chance that I end up paying back so much more than I borrowed and actually never pay it back!

You always pay off far more than you borrowed on any loan and if it's never paid back, why worry?

CLAPTON

kelloggs36 wrote: »

Trouble is, whilst I am a graduate teacher who earns 20k this year, from April I will be paying about £45 per month towards my student loan, which is accruing interest at £56 per month - so it won't get paid off and I am getting further and further into debt which worries me greatly! Whilst I have no intention of paying off more than the minimum because there is no point, it still means that there is a chance that I end up paying back so much more than I borrowed and actually never pay it back!

just to clarify

your are greatly worried aboout getting further into debt

but

there is no point in doing anything about it..

sign of the times one supposes

sapamm

Student loans may expire sooner than you think. Here is the relevant section of the terms and conditions relating to my 4 loans taken in 97,98,99,00. T&C states in article 7 'Cancellation':
"We will cancel your liability to repay the loan if you:
(a)die, or
(b) are not behind with any repayments under any agreement for a student loan and you:
(i) were under the age of 40 when your last agreement for a student loan was made
and you reach the age of 50 or when your last agreement for a student loan has been outstanding for not less than 25 years, whichever is the sooner; or
(ii) were aged 40 or older when your last agreement for a student loan was made and you reach the age of 60; or
(c) if you show us that you get a disability reelated benefit and because of your disability are permanently unfit for work.

In my case this is even better than I recalled when I took out the loans (I remembered it as 55) since because I was 36 when I took out my last loan this means in 3 years when I turn 50 the loan contract is cancelled. So far I have not paid anything because I have always been below the income threshold, so I have no arrears outstanding. (it is not my fault I have not paid anything, I was told my degree would lead to a good job and it never has, I work hard but Adam Smith's hidden hand sees to it I never earn more than about 18k)

Someone aged over 25 and under 40 when they took out their last loan has it cancelled at 50 and someone over 40 has it cancelled at 60.

Have I got this right?

melancholly

yes you're right - summary of terms halfway down this page.
http://www.moneysavingexpert.com/students/student-loans-repay

(although the loan terms after fees were introduced have tended to be a bit longer, plus on a lower threshold rather than the mortgage style ones you'd be on)