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    • LushesFaith
    • By LushesFaith 13th Jan 18, 12:33 AM
    • 89 Posts
    • 14 Thanks
    LushesFaith
    What is the point of the government selling on Student Loan debt if the terms remain the same? My loan has been sold on to Income Contingent Student Loans 1 (2002-2006) plc. I am concerned that despite the letter saying that the terms stay the same that sometime in the future something could change. I dont feel confident. Because I fail to see why sell something if it is dealt with the same way. Will the debt be cleared after 30plus years or does this now mean its for eternity till cleared.
    • agrinnall
    • By agrinnall 13th Jan 18, 9:38 AM
    • 20,343 Posts
    • 16,117 Thanks
    agrinnall
    What is the point of the government selling on Student Loan debt if the terms remain the same?
    Originally posted by LushesFaith
    They're selling it because it gets it off the government loan books. I imagine if they tried to do it with the terms being made worse there would have been a huge fuss.
    • Ed-1
    • By Ed-1 13th Jan 18, 10:46 AM
    • 2,230 Posts
    • 1,187 Thanks
    Ed-1
    What is the point of the government selling on Student Loan debt if the terms remain the same? My loan has been sold on to Income Contingent Student Loans 1 (2002-2006) plc. I am concerned that despite the letter saying that the terms stay the same that sometime in the future something could change. I dont feel confident. Because I fail to see why sell something if it is dealt with the same way. Will the debt be cleared after 30plus years or does this now mean its for eternity till cleared.
    Originally posted by LushesFaith
    The Government are giving up receiving the income stream of repayments over the next however many decades in preference for a (albeit severely discounted) lump sum of cash now to reduce Government debt.

    The loans in question are written off at age 65. The Sale of Student Loans Act 2008 prevents loans being sold on worse terms than equivalent unsold loans of the same type.

    The terms of loans are still controlled by the Government and are set in legislation. The Government have repeatedly said they have no plans to change the terms of pre-2012 loans which if anything is a bad thing as the repayment threshold on post-2012 loans is being changed to £25000 while the threshold for pre-2012 loans isn't being touched.

    The loans continue to be collected by SLC via HMRC. The only difference is that the Government now have no right to the repayments which must be passed to the loan purchaser.
    • LushesFaith
    • By LushesFaith 13th Jan 18, 11:02 AM
    • 89 Posts
    • 14 Thanks
    LushesFaith
    The Government are giving up receiving the income stream of repayments over the next however many decades in preference for a (albeit severely discounted) lump sum of cash now to reduce Government debt.

    The loans in question are written off at age 65. The Sale of Student Loans Act 2008 prevents loans being sold on worse terms than equivalent unsold loans of the same type.

    The terms of loans are still controlled by the Government and are set in legislation. The Government have repeatedly said they have no plans to change the terms of pre-2012 loans which if anything is a bad thing as the repayment threshold on post-2012 loans is being changed to £25000 while the threshold for pre-2012 loans isn't being touched.

    The loans continue to be collected by SLC via HMRC. The only difference is that the Government now have no right to the repayments which must be passed to the loan purchaser.
    Originally posted by Ed-1
    ok. That makes it clearer
    • AKN2412
    • By AKN2412 15th Jan 18, 8:57 AM
    • 1 Posts
    • 0 Thanks
    AKN2412
    Hi,

    Iím 22 and just enrolled into an apprenticeship where I will be doing it solely in my place of work, rather than at the college. I currently have debt with a bank loan and credit card.

    Am I still able to able to apply for a student loan or not?

    Any advice will be greatly appreciated!

    Thanks!
    • agrinnall
    • By agrinnall 15th Jan 18, 6:41 PM
    • 20,343 Posts
    • 16,117 Thanks
    agrinnall
    https://www.gov.uk/student-finance/who-qualifies
    • DJamesS
    • By DJamesS 18th Jan 18, 11:23 PM
    • 1 Posts
    • 0 Thanks
    DJamesS
    Postgraduate Loan
    Hi there,

    Looking for some advice re. paying off my student loans.

    I studied my undergraduate degree between 2011 and 2015 for which I have a Plan 1 loan (~ £28k, 1.25% interest) and I studied my MSc between 2016 and 2017 for which I have a PGL (~ £10k, 6.1% interest).

    I've just started a pretty well paid graduate job in ecological consultancy, on £24k gross.

    I'm not intending on paying any more on my UG loan than is taken automatically (9% over ~£17k I believe) and this is being taken out of my gross salary already. I won't pay this all off over the 25 years before it's wiped, so there's no point in making voluntary payments on that.

    My PGL is a much higher rate of interest and I won't start to pay it off til april 6th 2019, but when I do that will be an additional 6% over £21k. That will be a significant chunk of my gross income being taken for 30 years. I'm contemplating whether it is worth making voluntary payments as soon as I have the spare cash to do so in order to keep the interest from raising exponentially and trying to pay this loan off. I don't know whether paying it off ASAP is a better choice than losing a significant chunk of my salary for most of my working life. There doesn't seem to be a MSE article for graduates with BOTH types of loan combined so I don't know where else to turn for advice.

    Any help is much appreciated.
    • silvercar
    • By silvercar 19th Jan 18, 8:45 AM
    • 37,308 Posts
    • 157,166 Thanks
    silvercar
    My PGL is a much higher rate of interest and I won't start to pay it off til april 6th 2019, but when I do that will be an additional 6% over £21k. That will be a significant chunk of my gross income being taken for 30 years. I'm contemplating whether it is worth making voluntary payments as soon as I have the spare cash to do so in order to keep the interest from raising exponentially and trying to pay this loan off. I don't know whether paying it off ASAP is a better choice than losing a significant chunk of my salary for most of my working life.
    You need to do calculations based on the repayments and your personal expected salary in the years to come. If it like you will clear this loan in full, then it makes sense to pay it off early if you can afford to do so.
    • Buttersideup
    • By Buttersideup 20th Jan 18, 10:33 AM
    • 1 Posts
    • 0 Thanks
    Buttersideup
    Repaying loan from abroad
    Hi, my son completed his degree 4 years ago and has since emigrated to New Zealand. He has been in touch with SLC and is paying his loan off. They won't accept payments from foreign bank accounts, so we have set up a direct debit from our account and he transfers money to us every few months.
    It has occurred to me that if he was in the UK the money would be taken from his wages before tax, but this doesn't seem to be an option of you live abroad.
    Does anyone have any experience or advice as to how the payments could be made more efficiently please?
    • sheramber
    • By sheramber 20th Jan 18, 4:02 PM
    • 4,790 Posts
    • 3,589 Thanks
    sheramber
    Hi, my son completed his degree 4 years ago and has since emigrated to New Zealand. He has been in touch with SLC and is paying his loan off. They won't accept payments from foreign bank accounts, so we have set up a direct debit from our account and he transfers money to us every few months.
    It has occurred to me that if he was in the UK the money would be taken from his wages before tax, but this doesn't seem to be an option of you live abroad.
    Does anyone have any experience or advice as to how the payments could be made more efficiently please?
    Originally posted by Buttersideup

    The amount payable is calculated from the gross income before deductions but loan repayments are paid from the pay after tax has been deducted.

    They are not a tax deductible expense.
    • Espressodoble
    • By Espressodoble 20th Jan 18, 6:14 PM
    • 2 Posts
    • 2 Thanks
    Espressodoble
    Hello,

    As an overseas (Germany) self-employed person (on Plan 1) I must start repayimg when I earn teh equivalent of 17,775 GBP. What I'm interested in knowing is the calculation that will show how much I can earn in my local currency before I must start repaying. I have looked at the Threshold tables which provides the following information for Germany (I include a GBP Gibraltar for the base comparison). My question is simply - How much can I earn in Euros before I must pay back - what is the calculation. Many thanks
    Country Currency Exchange Rate Earnings Threshold
    Germany Euro 0.805942 £14,225.00
    Gibraltar GBP 1 £17,775.00
    Last edited by Espressodoble; 20-01-2018 at 6:26 PM. Reason: Format
    • Espressodoble
    • By Espressodoble 20th Jan 18, 6:46 PM
    • 2 Posts
    • 2 Thanks
    Espressodoble
    Paying from abroad
    Hi, my son completed his degree 4 years ago and has since emigrated to New Zealand. He has been in touch with SLC and is paying his loan off. They won't accept payments from foreign bank accounts, so we have set up a direct debit from our account and he transfers money to us every few months.
    It has occurred to me that if he was in the UK the money would be taken from his wages before tax, but this doesn't seem to be an option of you live abroad.
    Does anyone have any experience or advice as to how the payments could be made more efficiently please?
    Originally posted by Buttersideup
    I am certain they do accept money from foreign bank accounts. You only need there IBAN number and your SLC customer reference to set up a standing order to pay the amount they specify.
    • agrinnall
    • By agrinnall 20th Jan 18, 8:40 PM
    • 20,343 Posts
    • 16,117 Thanks
    agrinnall
    Hello,

    As an overseas (Germany) self-employed person (on Plan 1) I must start repayimg when I earn teh equivalent of 17,775 GBP. What I'm interested in knowing is the calculation that will show how much I can earn in my local currency before I must start repaying. I have looked at the Threshold tables which provides the following information for Germany (I include a GBP Gibraltar for the base comparison). My question is simply - How much can I earn in Euros before I must pay back - what is the calculation. Many thanks
    Country Currency Exchange Rate Earnings Threshold
    Germany Euro 0.805942 £14,225.00
    Gibraltar GBP 1 £17,775.00
    Originally posted by Espressodoble
    If the information you have given is correct then it's the simplest of arithmetic (if you can't do it perhaps you should be asking for a refund on your tuition given the minimum requirements for a UK degree course ) :

    14225 / 0.805942 = 17687 EUR

    I have no idea whether what you have quoted is right, perhaps you could post a link to the table (you'll need to make it so that it doesn't work and we can change the link to look at it).
    • Mooty2017
    • By Mooty2017 21st Jan 18, 8:52 AM
    • 3 Posts
    • 1 Thanks
    Mooty2017
    Mature student - household income
    Iím planning to study nursing in 3 years. We will likely be mortgage free at this point and will have savings of at least 40k. We will have 2 children under school age. My husbands salary is likely to be £40k but I wonít be earning whilst studying. Would I still be entitled to a tuition fee loan?
    • silvercar
    • By silvercar 21st Jan 18, 5:23 PM
    • 37,308 Posts
    • 157,166 Thanks
    silvercar
    Iím planning to study nursing in 3 years. We will likely be mortgage free at this point and will have savings of at least 40k. We will have 2 children under school age. My husbands salary is likely to be £40k but I wonít be earning whilst studying. Would I still be entitled to a tuition fee loan?
    Originally posted by Mooty2017
    Tuition fee loans aren't means tested, though the maintenance loans are. Whether you are eligible depends on the course and if you were eligible for loans for a previous course. eg do you already have a degree?
    • Mooty2017
    • By Mooty2017 21st Jan 18, 6:03 PM
    • 3 Posts
    • 1 Thanks
    Mooty2017
    Tuition fee loans aren't means tested, though the maintenance loans are. Whether you are eligible depends on the course and if you were eligible for loans for a previous course. eg do you already have a degree?
    Originally posted by silvercar

    Thank you for your reply. I donít have a degree already and I assume nursing would be included as the tuition fees are no longer paid for by public health. It is only the tuition fee loan I would apply for as I am saving as much as possible in the next 3 years to cover the living costs.
    • silvercar
    • By silvercar 22nd Jan 18, 9:05 AM
    • 37,308 Posts
    • 157,166 Thanks
    silvercar
    Thank you for your reply. I donít have a degree already and I assume nursing would be included as the tuition fees are no longer paid for by public health. It is only the tuition fee loan I would apply for as I am saving as much as possible in the next 3 years to cover the living costs.
    Originally posted by Mooty2017
    If you read the Martin Lewis money saving articles, you see that if you won't ever clear your student loans it makes sense to take the maintenance loan too. It won't alter your loan repayments at all as they are based on income not the amount borrowed.

    Main article here.
    • agrinnall
    • By agrinnall 22nd Jan 18, 5:22 PM
    • 20,343 Posts
    • 16,117 Thanks
    agrinnall
    If you read the Martin Lewis money saving articles, you see that if you won't ever clear your student loans it makes sense to take the maintenance loan too. It won't alter your loan repayments at all as they are based on income not the amount borrowed.

    Main article here.
    Originally posted by silvercar
    I'm glad you said that, as it's what I was thinking, but I don't know enough about student loans to be sure it was correct.
    • Mooty2017
    • By Mooty2017 24th Jan 18, 9:24 AM
    • 3 Posts
    • 1 Thanks
    Mooty2017
    Thank you. I didnít realise the maintenance loans arenít means tested either. I will be 35 when I start the degree so no idea if I will ever pay it off.
    • sheramber
    • By sheramber 24th Jan 18, 2:07 PM
    • 4,790 Posts
    • 3,589 Thanks
    sheramber
    Thank you. I didnít realise the maintenance loans arenít means tested either. I will be 35 when I start the degree so no idea if I will ever pay it off.
    Originally posted by Mooty2017
    Household income is taken into account when working out how much Maintenance Loan you will get
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