Student Loan debt

StokieBecks

Has you son just received a statement or is it a request for payment? Student loans send out statements yearly (as far as I know) and no action is needed. Once he is earning above the earnings threshold payments towards the loans will start being deducted from his wages. If it isn't a demand for payment there is no real need to worry. If he wants to start paying he can make voluntary one off payments any time he likes online

StokieBecks

His student loan won't show up on his credit report or affect his credit rating if that is his worry.

carollaw1

Not sure whether this should be a new thread but here goes anyway. My daughter has just had her statement for her student loan status (she started in 2012 and finished in 2015). She is now doing a post graduate degree which will obviously add to her total debt. Does anyone know whether the 30 year clock on her first degree will already be ticking (it says it starts after graduation). If so, will this mean that her first degree payment will end earlier than her second degree? Or will both degrees be lumped together and the 30 year clock not start ticking until the end of the current one. Hope that makes sense. Thanks.

redpete

carollaw1 wrote: »

Not sure whether this should be a new thread

Yes it should, otherwise it can get difficult to track which replies refer to which question.

Ed-1

carollaw1 wrote: »

Not sure whether this should be a new thread but here goes anyway. My daughter has just had her statement for her student loan status (she started in 2012 and finished in 2015). She is now doing a post graduate degree which will obviously add to her total debt. Does anyone know whether the 30 year clock on her first degree will already be ticking (it says it starts after graduation). If so, will this mean that her first degree payment will end earlier than her second degree? Or will both degrees be lumped together and the 30 year clock not start ticking until the end of the current one. Hope that makes sense. Thanks.

Postgraduate loans are on completely different terms to undergraduate loans. As it happens the Government did include a 30 year write-off provision on postgraduate loans (they didn't have to) which starts when the postgraduate loans becomes liable for repayment. Usually this is on 6th April after leaving the course. However no postgraduate loan is liable for repayment before 6th April 2019. So the undergraduate loan (which became liable for repayment on 6th April 2016) will get cancelled on 6th April 2046 and the postgraduate loan will get cancelled on 6th April 2049.

Are you aware that postgraduate loan repayments are alongside undergraduate loan repayments? 9% above £21,000 for UG and 6% above £21,000 for PG, i.e. 15% above the threshold in total will get taken.

Ed-1

treetops wrote: »

thanks Ed for checking interest rates.


In


05.02.14 2250
07.05.14 4500
24.12.14 1312


was paid in tuition fee loan payments


A payment on 04.02.15 1312 which was reversed as my son was withdrawn from university.


However a subsequent payment was made


08.07.15 1312.50


My understanding is that Tuition fee loan payments are paid directly to the university.


Maintenance loan payments are paid directly to the student.

I'm a bit confused as to the dates of the various payments and which academic year they relate to. The academic year 2014/15 usually runs from September 2014 to August 2015. If the tuition fee for the year was £9,000 and the student withdraw in February then the university can charge as follows and SLC will pay as follows:

The rules are that SLC will pay 25% of the full tuition fee loan to the university if the student is confirmed as starting the academic year, another 25% if they are confirmed as in attendance at the start of term 2 (the university provide SLC with 3 term start dates regardless of whether they run 2 semesters) and the final 50% if the student is confirmed as in attendance at the start of term 3.

The university are entitled to charge the student up to these amounts, but they can charge less if they want (although many don't).

System

That's correct - Post-grad loans (Masters, PhD etc.) are on a seperate, and I believe more expensive, system.