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Post graduate student loans
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bankbeagle
Posts: 2 Newbie
Bank scheme offers loans interest free for 3year course then 5 years to repay at APR say 5% which is averaged over whole loan period. HMGov pays interest during 3year course. No problems except when it comes to paying the APR is 12%.Bank argue its. Deferred loan agreement.
But it's not the accrued 3year interest was paid by HMGov on students behalf no doubt at very low interest rate.banks won't release details of deal with HMGOv.
Appears banks being paid twice and students mis sold overpaying.
Any financial experts to advise please this could be another banking miss selling
But it's not the accrued 3year interest was paid by HMGov on students behalf no doubt at very low interest rate.banks won't release details of deal with HMGOv.
Appears banks being paid twice and students mis sold overpaying.
Any financial experts to advise please this could be another banking miss selling
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Comments
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fantastic deal for the student
awful deal for the taxpayer
time the government stopped this free money for students0 -
fantastic deal for the student
awful deal for the taxpayer
time the government stopped this free money for students
Couldn't agree more. Apart from the fact it lets people rack up 30k of debt before they've even earned a penny, it allows students not to work and hence they can't develop any sort of soft skill.
I'm a student at the moment and folk keep saying, aw, it's 450 a month for free, seeming not to realise that they'll have a much reduced income for many years after uni, IF they get a job.0 -
The two responses so far are sad in that the readers have neither understood the issues,the maths or the point that there appears another banking scam ripping off HMGov, Consumers in this case not students but very hard working doctors who have to take loans out to enable them to qualify to save lives.
The posters may wish to apologise for their inappropriate politically motivated comments that have no place in this forum.
I invite financial experts to respond only.0 -
bankbeagle wrote: »very hard working doctors who have to take loans out to enable them to qualify to save lives.
To be precise, they are taking out loans to enable them to follow their chosen careers. Let's take the emotion out of the argument.0 -
bankbeagle wrote: »The two responses so far are sad in that the readers have neither understood the issues,the maths or the point that there appears another banking scam ripping off HMGov, Consumers in this case not students but very hard working doctors who have to take loans out to enable them to qualify to save lives.
The posters may wish to apologise for their inappropriate politically motivated comments that have no place in this forum.
I invite financial experts to respond only.
I sincerely hope you are not really training to be a doctor.
Sadly the inability to write clear English or to understand Maths may well costs lives.0 -
On a loan product the APR has to be shown for the whole loan period. Hence the advertised rate of say 5.7%.
Both banks offer CDLs clearly explain the situation with interest and how it is calculated, not in small print but clearly on their websites and printed literature for these loan.
E.g. from the barclays site http://www.barclays.co.uk/Yourloanoptions/Graduateandprofessional/ProfessionalandCareerLoan/P1242557963934
Its on all 3 tabs on that site - the overview, the key information and the summary box.Representative example:
Representative APR 5.7% APR variable for a 21-month courseInterest rate per annum
0% until one month before the first monthly payment is due then 9.9% fixed thereafter
Anyone taking out such a loan will be clear from the start how much they will repay in total and when as it will be clear on the loan agreement.
In order to cut the cost of the loan once the borrower is in employment MSE recommends trying to obtain a cheaper personal loan to pay off the cdl. http://www.moneysavingexpert.com/students/career-development-loans
Not everyone will necessarily be able to do that though so I guess its best to work on the assumption that the borrower will keep the loan full term.
However I think these are still a great deal for people who need them, its a cheap overall APR with such a long deferral period, and for many people a better option than working for a few years first to save up enough to fund course fees and living costs for a postgraduate course.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
bankbeagle wrote: »Consumers in this case not students but very hard working doctors who have to take loans out to enable them to qualify to save lives.
I have many medic friends who are all doing very nicely thank you, the debt when them come out of uni is disappointing but the big salaries they earn soon compensates for that.
Perhaps you would rather they get free education and much smaller salaries post graduation? The money has to come from somewhere.
I was out in Madrid last week training some doctors from various EU countries, none of them seemed to be struggling too much judging by the talk of skiing holidays, holiday homes and cars. Studying medicine is not normally a poor choice financially in the long run.
People going to uni should think carefully about their choice of course as they will have debt and need to be working towards a job where that debt can be repaid."We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein0 -
bankbeagle wrote: »Bank scheme offers loans interest free for 3year course then 5 years to repay at APR say 5% which is averaged over whole loan period. HMGov pays interest during 3year course. No problems except when it comes to paying the APR is 12%.Bank argue its. Deferred loan agreement.
But it's not the accrued 3year interest was paid by HMGov on students behalf no doubt at very low interest rate.banks won't release details of deal with HMGOv.
Appears banks being paid twice and students mis sold overpaying.
Any financial experts to advise please this could be another banking miss selling
What does the paperwork that you signed when you borrowed the money state?
Are people really allowed to do postgrad study with such poor English?0 -
bankbeagle wrote: »The posters may wish to apologise for their inappropriate politically motivated comments that have no place in this forum.
I invite financial experts to respond only.
Lol how were the first 2 replies " inappropriate " and " politically motivated " ?
Anyone can reply whether they are financial experts or not.0
This discussion has been closed.
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