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Student Loan repayments taken too early after graduation
Henri_scraw
Posts: 2 Newbie
in Loans
A little advice from someone who understands student loans better than I please...
Rang up student loans Co. (SLC) today after being encouraged by MSE to check if repayments had been taken too early (via salary deductions) after graduation. I graduated in July '07 and the SLC did indeed take repayments too early (about £800) prior to April 2008. The SLC customer service stated that I could have this repaid to me, however 'this has already been taken into account'. Therefore, if I take a BACS transfer of the £800 now, this will simply be added to final amount owed and extend my repayment period by another 3 months (plus interest of 1.5% will be added on that additional amount).
Am I missing something here? What does 'already taken into account mean'? By taking this money now, am I simply accepting a low interest rate loan of £800 but prolonging shifting my student loan debt...?
Rang up student loans Co. (SLC) today after being encouraged by MSE to check if repayments had been taken too early (via salary deductions) after graduation. I graduated in July '07 and the SLC did indeed take repayments too early (about £800) prior to April 2008. The SLC customer service stated that I could have this repaid to me, however 'this has already been taken into account'. Therefore, if I take a BACS transfer of the £800 now, this will simply be added to final amount owed and extend my repayment period by another 3 months (plus interest of 1.5% will be added on that additional amount).
Am I missing something here? What does 'already taken into account mean'? By taking this money now, am I simply accepting a low interest rate loan of £800 but prolonging shifting my student loan debt...?
0
Comments
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Henri_scraw wrote: »A little advice from someone who understands student loans better than I please...
Rang up student loans Co. (SLC) today after being encouraged by MSE to check if repayments had been taken too early (via salary deductions) after graduation. I graduated in July '07 and the SLC did indeed take repayments too early (about £800) prior to April 2008. The SLC customer service stated that I could have this repaid to me, however 'this has already been taken into account'. Therefore, if I take a BACS transfer of the £800 now, this will simply be added to final amount owed and extend my repayment period by another 3 months (plus interest of 1.5% will be added on that additional amount).
Am I missing something here? What does 'already taken into account mean'? By taking this money now, am I simply accepting a low interest rate loan of £800 but prolonging shifting my student loan debt...?
If you are someone that is going to repay the loan in full then getting a refund of loan repayments puts it back onto the loan balance so extends repayments. It's hardly worth doing.
If you're someone who's not going to repay the loan in full then it's effectively a tax refund so is worth doing.0
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