Student loan petition - please sign!

pinkshoes

So what happens to a student loan if you reach retirement and still haven't paid it off? Obviously a pension isn't going to be over £15k... so when you die, will they take what is owed out your savings/equity? i.e. if I left my house to a child, could the student loan company then demand £10k, which the child would have to find if they didn't want to sell the house? (obviously they'd have to pay inheritance tax too....)

(just changing the subject... sorry!)

Broke_Student

pinkshoes wrote: »

So what happens to a student loan if you reach retirement and still haven't paid it off? Obviously a pension isn't going to be over £15k... so when you die, will they take what is owed out your savings/equity? i.e. if I left my house to a child, could the student loan company then demand £10k, which the child would have to find if they didn't want to sell the house? (obviously they'd have to pay inheritance tax too....)

(just changing the subject... sorry!)

As it stands, any student loans taken out expire 25 (not 15 - that was a mistake) years after graduation so they would have been paid off or written off long before retirement!

pinkshoes

Broke_Student wrote: »

As it stands, any student loans taken out expire 15 years after graduation so they would have been paid off or written off long before retirement!

Does that count for ALL the student loans? I was the first year of students that had to pay tuition fees... I couldn't find anywhere what happened to my loan if I couldn't pay it!

I'm paying it now, but plan to have a career break to have kids in the near future, so would be either not working, or working part time (so <£15k p.a). I/we also to move abroad after having kids, where salaries are much lower, so I doubt I'd be earning over £15k.

When I took the loan out (9 years ago), the emphasis was on the fact that it had a very low interest rate, with no mention of the rate being anything near the rate they're planning to jump it up to! I understand they can do this, but it's a little like false advertising when they're selling it to 18 year olds as a very cheap loan and the 'normal' (and only) option when going to uni. It's also emphasised as a government initiative, which implies that it won't follow the banks high rate changes!! I can see why people are annoyed!

andyrules

In all fairness to students who sign up for a loan, if you want to go into HE, there isn't a lot of choice!

RocketMan

Hello

I've been a student for a while now (almost 7 years, on the PhD now), the only thing I knew about the student loan was that it would track the rate of inflation, based on this I decided it was a good idea (and the only way I afford to go to uni).

To be honest the student loan is the best loan you’re ever going to get, and I don’t regret taking it out in the slightest, nor am I worried about the interest rates for the experience of going to uni was well worth it!!

As to Broke student saying that they expire after 15 years I wish, the only way they end is
- when the repayer reaches 65
- if the repayer becomes permanently disabled and unfit for work
- if the repayer dies

If a student started their studies in 2006 or later, the Government will write off any part of their student loan that is left unpaid 25 years after they leave their course - instead of at age 65. This arrangement also applies to students who continued their studies in 2006 or later and did not take out a loan while on their course.


Here are the rates for the past 17 years or so

Year APR
1990/91 9.8%
1991/92 5.8%
1992/93 3.9%
1993/94 1.2%
1994/95 2.3%
1995/96 3.5%
1996/97 2.7%
1997/98 2.6%
1998/99 3.5%
1999/00 2.1%
2000/01 2.6%
2001/02 2.3%
2002/03 1.3%
2003/04 3.1%
2004/05 2.6%
2005/06 3.2%
2006/07 2.4%

This facts thanks to the student loans company. Best of luck with your courses, and don’t worry too much about the student loan. Nothing ventured nothing gained and all that

Oldernotwiser

pinkshoes wrote: »

Does that count for ALL the student loans? I was the first year of students that had to pay tuition fees... I couldn't find anywhere what happened to my loan if I couldn't pay it!

I'm paying it now, but plan to have a career break to have kids in the near future, so would be either not working, or working part time (so <£15k p.a). I/we also to move abroad after having kids, where salaries are much lower, so I doubt I'd be earning over £15k.

When I took the loan out (9 years ago), the emphasis was on the fact that it had a very low interest rate, with no mention of the rate being anything near the rate they're planning to jump it up to! I understand they can do this, but it's a little like false advertising when they're selling it to 18 year olds as a very cheap loan and the 'normal' (and only) option when going to uni. It's also emphasised as a government initiative, which implies that it won't follow the banks high rate changes!! I can see why people are annoyed!

The SLC has always stated that the loans were at the rate of inflation; it just happens that in the last few years inflation rates were low. If inflation rates increase then so will the interest on loans but you'll still only be paying back the equivalent amount of money.

If you're going to be working abroad and earning less than £15,000 or if you're at home bringing up a family, you won't pay anything back at these times. You may well find that much of the loan is still outstanding after 25 years and will be wiped out.

pinkshoes

Oldernotwiser wrote: »

The SLC has always stated that the loans were at the rate of inflation; it just happens that in the last few years inflation rates were low. If inflation rates increase then so will the interest on loans but you'll still only be paying back the equivalent amount of money.

If you're going to be working abroad and earning less than £15,000 or if you're at home bringing up a family, you won't pay anything back at these times. You may well find that much of the loan is still outstanding after 25 years and will be wiped out.

thanks!

I understand about the inflation on my student loan now, but 9 years ago I didn't really understand much about it, and the information given was in the form of deathly boring long long long documents. TBH, i was more concerned about getting my A Level grades, getting on the course, earning money to pay for stuff i was going to need etc... so didn't really give the loan much thought. it was the only and normal way to pay for uni, and everyone else was doing it, so i just did the same. Any 18 year old who pays that much attention must be a little odd

I did enjoy my course, but often find it strange why the government would lend me SO much money (£15k), when there's quite a high chance that if I want kids, my loan will never get paid off!! If I had to pay for uni myself (a loan that wouldn't be written off at age 65), then i wouldn't have bothered going!

MercilessKiller

Thanks for agreeing with me pinkshoes! And its the same for nearly EVER first year uni student about not really understanding it and paying more attention to A-Levels...

But apparently we get insulted for this nowdays on this forum

Blacksheep1979

MercilessKiller wrote: »

Thanks for agreeing with me pinkshoes! And its the same for nearly EVER first year uni student about not really understanding it and paying more attention to A-Levels...

But apparently we get insulted for this nowdays on this forum

as you say - you only didn't understand it in your first year, yet you will have or will intend to no doubt take out more.

I still maintain that it's foolish - would you go into a bank and get a loan or a mortgage without looking at the repayments? No? Well why would you do it with any other kind of loan?

MercilessKiller

*sigh*

Since when have A level students been able to take out loans or mortgages? Its the same witH Tax and work! I had NO idea then how much you pay what to who etc etc etc...

When you've been living at home and not been working due to school, you don't know these things. Then when 200 students around you are being told to sign this and do that, then you do it as well because its the standard thing to do as the head of year says...

We were told the basics, the threshold, etc etc, but that was it and that was all we needed to know at that time really.

In heindseight I couldn't have afforded uni without it so of course i'd take out more.....

You gotta stop thinking everyone reads and understands everything. When a 30 year old takes out a mortgage then I agree, but for an A level student... your in a dream world mate.