Can anybody figure out how they have calculated my monthly student loan repayment amounts?

Fleeb

I have an ancient mortgage style pre-1998 student loan, I've been deferring it for ages but this year I've reached the repayment threshold, which is fair enough. The problem is I know the term (60 months), the balance as of 31st August 2022 (£1675.71) and the interest rate for 2023 (9%) but my monthly repayment amount (£36.39) is higher than I was expecting and for the life of me I can't figure out how they have calculated it from the initial three terms.

Ask the loan holder you say? I have, they are refusing to supply the calculation. They just sent a copy of the original loan agreement and say they calculated the repayments according to that. Unfortunately the original agreement just says something about repayments being based on the loan amount, interest and either 60 or 84 months. No formula is given.

My starting calculation was principal plus interest divided by 60 ( 1675.71 * 1.09 ) / 60 = £30.44 per month. At least until September when the interest rate for the coming year will change and the calculation changes. Then I thought maybe each month I have to pay off 1/60th of the principal and 1/12 of the interest for the coming year: (1675.71 / 60) + (150.81 /12) = 27.93 + 12.57 = £40.50 per month. Neither of those match the actual repayment amount of £36.39. Does anybody know the algorithm they use to calculate the monthly repayments for pre-1998 loans?

silvercar

Try scenarios here: https://www.moneysupermarket.com/loans/calculator/


 If you assume that the loan has gone up by say 9%per annum since August 2022 so 9 months from when you asked? Then the principal amount would be £1788.82 and your monthly payments £36.83.