Student loan query

bigmcal

Hi,just a query re student loans

I borrowed £14,000 in 2000. Since then I have been paying between £100-£250 a month towards the loan. A rough guesstimate I would say I have paid between 25k-30k towards this loan. Called them today to be told I still owe £9.5k. Surely this cannot be right, even payday loans don’t have that sort of interest rate. I have asked them to send me a full breakdown of my account. Can anyone with any knowledge of student loans confirm if I have been overpaying and how I would go about resolving this.

Many thanks

TadleyBaggie

If it had been payday loan rates, you would probably owe millions by now!

Since the loan has been running the best part of 20 years, even a modest interest rate could see you having to pay back 2x the original amount.

engineer_amy

Do you pay them directly, or is a deduction made from your wages? if its from your wages, remember that the tax year has just finished and HMRC only advised the student loan people once a year, after the tax year. So it is possible that this years payments haven't been allocated yet.
but if you have requested a full statement, you should be able to match up payments, application of interest etc

TadleyBaggie

According to the SLC, a loan taken out in 2000 should have an interest rate of 2.6%.

Ed-1

TadleyBaggie wrote: »

According to the SLC, a loan taken out in 2000 should have an interest rate of 2.6%.

Interest rates on pre-2012 (plan 1) loans are currently 1.75%. They change each year.

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678642&_dad=portal&_schema=PORTAL