Student debt - what you should really know

stuwilky · 10 April 2005 at 8:24PM

It wont make any impact on any of those things unless you actually default.

It isnt recorded with any of the credit reference agencies unless they need to pursue you for non payment/non declaration.

newfoundglory · 10 April 2005 at 8:34PM

stuwilky wrote:

It wont make any impact on any of those things unless you actually default.

I don't think thats possible. Its automatically taken from your wages... if you stop having a job then you stop paying the loan back since how much you pay depends on your income?

stuwilky · 10 April 2005 at 8:41PM

newfoundglory wrote:

I don't think thats possible. Its automatically taken from your wages... if you stop having a job then you stop paying the loan back since how much you pay depends on your income?

It is, on the new style loans you disappear off without paying, you fail to reply to correspondence, you falsley declare....

On the old style loans, you fail to make payments etc....

equine_induced_poverty · 10 March 2006 at 2:37AM

Just checked the SLA website and discovered that as I am disabled I can have a longer deferment/cancellation. Pity I didn't know about this when I became disabled as I used all my savings to clear most of my loan so I could start an OU course! BUM!!
Will still phone them and give them a miserable morning though...

lynzpower · 11 March 2006 at 10:00AM

stuwilky wrote:

It wont make any impact on any of those things unless you actually default.

It isnt recorded with any of the credit reference agencies unless they need to pursue you for non payment/non declaration.

Not so. When I camee to buy my shared ownership last year, the Abbey ( lowest rates I went all of market broker) they would lend me the mortgage for the flat, MINUS what I owed to the SLco and other debtors. At this stage I was very pleased I only owed a couple of grand, not the 7 or so that I started with.

I am paying mine back ( graduated in 99) as per Direct debit as taking from my salary wasnt an option - still isnt. I am almost at the end of mine ( see my sig) and it is very satisfying indeed. I was paying over 150 a year in interest, this is dead money, no matter what anyone says.

And there is no question, I had to live on mine, not stooze or whatever its called, most students cant just raise the cash off SlCo, bang it in an isa and make a few quid. I reckon if you can pay it off, you should. As you never know whats going to happen with the lending market in the future.

fran_from_willesden · 11 March 2006 at 1:50PM

jago25_98 wrote:

So much ignorance surrounding student debt it's unreal.

Pay off debts or keep in high interest account?

On the face of it student loan interest is ~3% and high interest accounts offer ~4%+ (you have to ring up for an exact figure - aggh!)

so there's no point paying off your student loan because it's earning more interest in a high interest account. Furthermore you can `lend yourself` money from this pool at a low rate.

I wish I could have afforded to put my student loan of £3800 a year in a high interest account instead of spending it on important stuff like rent and food, fees and equipment. When I was doing my undergrad degree, I knew people who put their loans in high street accounts but they could do that because their parents were wealthy and could pay for everything.

elisebutt65 · 11 March 2006 at 2:04PM

Savings - lol!!! It's taken me 2 years to save £600!!

I'm a full time student and a single mum - If anyone could wave a magic wand and make it possible for me to put it away to save ??????

As it is, I'm up to 12,000, got another year to go and then my PGCE(further-ed.) to do as well - By then I'll be 44, so not a lot of time left to pay it all off, so I just forget about it - They'll never get all their money back and it'll take me a while to get up to the salray level anyway.

jr666 · 11 March 2006 at 3:20PM

finally i see those last two posts and confirms that there are other people in existance that use the loan as its intended; to pay for the cost of living/rent etc...

Everyone talking about sticking it in an ISA are the sort of people who really dont need it in the first place. Why bother with years of money being taken out of your pay slips to pay for the needless loan. So you might get a couple hundred quid in intrest, so what? That will be gobbled up by the SLC in someway as the rates increase over time.

If you can afford to not take it i strongly suggest you don't. Its analogous to going into a bank and asking for a £20k loan when you've already got £50k sitting in your account.

^!£$& · 12 March 2006 at 11:39AM

I was wondering
I'm in my second year now and have just under £5000 in debt, Ive decided not to take out a loan in my third year so when I graduate, can I just pay off my loan all in one go?? Like making a cheque to slc??
thanks

jago25_98 · 12 March 2006 at 2:21PM

I believe you should take all the loan you can and if possible invest it rather than use it because the money on interest is higher than the cost of borrowing it

Student debt - what you should really know

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free