We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Student loan - repayments not clearing anything, interest causing debt to rise
Options
housebuyer7
Posts: 190 Forumite
Is this right? I am on repayment plan 2. I earn £43,000 per year. My repayments are not clearing the debt and instead interest is just getting added and added.
Two years ago in September 2022, when I was probably earning ~£40,000 or a bit less, the debt was £33,929.44. Now today I have taken a look, November 2024, and the debt is £36,176.15.
0
Comments
-
You are currently paying less than the annual interest.
Those are the interest rates applied to your loan.
https://www.gov.uk/guidance/how-interest-is-calculated-plan-2
Your repayments are 9% on income above £27,295.
The interest is higher than the repayments, hence the increasing loan balance.0 -
Thank you!0
-
Just a reminder this topic was covered on Money Box today.
https://www.bbc.co.uk/programmes/b006qjnv/episodes/guideFree thinker.:cool:1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards