Help With Student Loans - HERE!

tihomirbz wrote: »

The mortgage point doesn't really bother me - I am not planning on buying property in the UK any time soon (at least for the next 4-5 years), as I don't even know if I will be staying in the country for that long (EU citizen, Brexit, etc...). So I guess it makes sense in my case try and pay it back in full as quickly as possible?

One thing I don't understand is when and how interest is added to the loan? I would like to make a bulk payment shortly before the interest is applied (even if not the full amount) to reduce the amount for this year particularly. I think I read somewhere that interest is added in September? Does that mean I should make a voluntary payment on studentloanrepayment some time in August?

Thanks!

Interest is calculated daily and compounded monthly, although you won't see it applied to the account until they know your income details after the end of the tax year.

misshevatreva wrote: »

I started studying for my MA in September 2016 and got the student finance PG loan. I've really struggled with my course, my supervisor suggested lowering the qualification (I'm presuming a Post-Graduate Certificate or Diploma). Will this affect my loan? Will I have to repay it sooner rather than in 2018? Or will the rules to it still apply?

Postgraduate loan repayments don't start until 6th April 2019 at the earliest.

Hello
Are there any active Student Finance advisors around who have experience of the compelling personal reasons procedure. I would be very grateful for some advice as I am having serious difficulty getting any advice from the the standard advisors.

Thank you

lizziegrace81 wrote: »

Hi, I had a full Student loan in 1999 for a 3 year degree equating to roughly £10k in borrowing. I have been in touch with the SLC today for an update as, due to address changes, I've not heard anything for a while. I have been told I now owe over £11k! More than originally! How can that be?! I don't understand how my interest could have accrued to take me over what I borrowed initially.

I started full-time employment in 2004 earning enough to make payments and although I have been on maternity leave recently I would have thought my balance would have decreased in that time?! I am currently paying £90 a month.

Would I have been paying interest still whilst on maternity leave? I think it is disgusting. As a student I was not made aware of the consequences of this loan. That may sound pathetic but it was billed to me as an interest free loan. Nobody at any point mentioned this would change after my course had ended.

Any help greatly appreciated.

It's the best loan you'll ever get as there's no obligation to pay it back. The only obligation is to make a contribution of 9% of your income over the repayment threshold which is currently £17,775 and increases every April by inflation.

When you signed the loan agreement, you were confirming you'd read and understood all this.

The loan is interest free in real terms. That is, interest is only applied at the rate of inflation to maintain the loan's value in real terms and it accrues from the day you get it paid to you. However, since 2009, the Bank of England base rate has been below inflation so the loan has actually been reducing in value as the interest rate on pre-2012 loans is the lower of inflation (RPI) or the Bank of England base rate (0.25%) plus 1%. So with inflation being higher than the interest applied, inflation has been eroding its value.

If you borrowed £10,000 in 1999 and it's still £10,000 in 2017 then it's worth a heck of a lot less now than it was then. The average wage back then would've been not much more than £10,000. Now it's £26,500.

But that doesn't change the fact that it's written off at age 65 for you anyhow. So just see it as an extra bit of tax out of your income, not something you need to be worried about paying back.