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  • FIRST POST
    • Adams18
    • By Adams18 14th Jun 19, 2:22 PM
    • 103Posts
    • 18Thanks
    Adams18
    I am not happy with Plan 1... am I the only one here?
    • #1
    • 14th Jun 19, 2:22 PM
    I am not happy with Plan 1... am I the only one here? 14th Jun 19 at 2:22 PM
    So I am on the Plan 1 repayment option for Student Loan (Pre 2012). Where the amount I pay each month is directly proportional to the amount I earn. 9% of anything over 18.935K or something like that.

    If I get pay rises, I pay more. If I get a Bonus, I pay a hell of a lot more.... as well as income tax, and NI etc.

    This is ridiculous. Last month I paid 750 pounds on student loan because I got a bonus, otherwise it is usually around 280 a month.

    I don't want to pay my student loan faster than the "other guys" on Plan 2. I want to repay it over a longer period of time, and have more disposable income to use now for "life".

    It's like forcing a mortgage period of ten years on someone, when they should be given the option to choose, 20 or 30 year terms.

    I get you save on interest...but come on... this is getting ridiculous... 56% deduction on a company bonus as result of all this.

    I wish I could switch to Plan 2 because it is unfair, at this rate I'll clear my debt in 7 years, I don't want to do that. Why am I the only one who feels like this?

    Paying 4500 in taxes and deductions in one month is heart breaking sorry if I sound ungrateful, but doesn't seem reasonable to me.
    Last edited by Adams18; 14-06-2019 at 2:26 PM.
Page 1
    • _shel
    • By _shel 14th Jun 19, 2:46 PM
    • 2,353 Posts
    • 4,330 Thanks
    _shel
    • #2
    • 14th Jun 19, 2:46 PM
    • #2
    • 14th Jun 19, 2:46 PM
    So I am on the Plan 1 repayment option for Student Loan (Pre 2012). Where the amount I pay each month is directly proportional to the amount I earn. 9% of anything over 18.935K or something like that.

    If I get pay rises, I pay more. If I get a Bonus, I pay a hell of a lot more.... as well as income tax, and NI etc.

    This is ridiculous. Last month I paid 750 pounds on student loan because I got a bonus, otherwise it is usually around 280 a month.

    I don't want to pay my student loan faster than the "other guys" on Plan 2. I want to repay it over a longer period of time, and have more disposable income to use now for "life".

    It's like forcing a mortgage period of ten years on someone, when they should be given the option to choose, 20 or 30 year terms.

    I get you save on interest...but come on... this is getting ridiculous... 56% deduction on a company bonus as result of all this.

    I wish I could switch to Plan 2 because it is unfair, at this rate I'll clear my debt in 7 years, I don't want to do that. Why am I the only one who feels like this?

    Paying 4500 in taxes and deductions in one month is heart breaking sorry if I sound ungrateful, but doesn't seem reasonable to me.
    Originally posted by Adams18
    Don't think anyone can say they are happy to repay debts
    • Adams18
    • By Adams18 14th Jun 19, 3:07 PM
    • 103 Posts
    • 18 Thanks
    Adams18
    • #3
    • 14th Jun 19, 3:07 PM
    • #3
    • 14th Jun 19, 3:07 PM
    Don't think anyone can say they are happy to repay debts
    Originally posted by _shel

    Well it's my debt, I am liable to pay it lol I can't be unhappy... I fully accept responsibility for it. But I'd like some flexibility on how I pay it back at least!!
    • Ed-1
    • By Ed-1 14th Jun 19, 3:31 PM
    • 2,649 Posts
    • 1,421 Thanks
    Ed-1
    • #4
    • 14th Jun 19, 3:31 PM
    • #4
    • 14th Jun 19, 3:31 PM
    Well it's my debt, I am liable to pay it lol I can't be unhappy... I fully accept responsibility for it. But I'd like some flexibility on how I pay it back at least!!
    Originally posted by Adams18
    Unfortunately Labour left the threshold at 15,000 prior to the 2010 election, planning to review it after the election. The independent review recommended raising it to 21,000 because it hadn't been raised since 2005 (when it increased from 10,000). But Labour weren't around by then and the Coalition played politics over it to force through the rise in fees to 9k by saying "look at our shiny new system with lower monthly repayments - you'll be so much better off than if you went to uni under Labour". Politics for you. They only decided to uprate the Labour threshold by inflation, leaving it lower. If Labour had have still been in power in late 2010, they'd have almost certainly kept the same system going for everyone and raised the threshold for everyone, not just new students.

    But even then the 21k plan 2 threshold was going to be frozen until 2021 when the plan 1 threshold would have nearly caught up anyway. But then the incompetent Theresa May came on the scene, called a snap election, threw the system into political chaos and made a knee-jerk decision to raise the plan 2 threshold to 25k and uprate it with earnings. Ridiculous!

    Then recently the independent Augar review report came out and is recommending the threshold be lowered to 23k but only for future students under a new "plan 3" system. It is also recommending the payback period be increased to 40 years, also only for plan 3 loans. The government haven't made decisions about what to do but how can it be fair to leave plan 2 people paying nothing or next to nothing back at the expense of everyone else?
    Last edited by Ed-1; 14-06-2019 at 4:25 PM.
    • Socajam
    • By Socajam 14th Jun 19, 3:50 PM
    • 497 Posts
    • 687 Thanks
    Socajam
    • #5
    • 14th Jun 19, 3:50 PM
    • #5
    • 14th Jun 19, 3:50 PM
    I think the whole thing is ridiculous, you borrowed the money, pay it back and move on with your life
    • Adams18
    • By Adams18 14th Jun 19, 4:32 PM
    • 103 Posts
    • 18 Thanks
    Adams18
    • #6
    • 14th Jun 19, 4:32 PM
    • #6
    • 14th Jun 19, 4:32 PM
    Unfortunately Labour left the threshold at 15,000 prior to the 2010 election, planning to review it after the election. The independent review recommended raising it to 21,000 because it hadn't been raised since 2005 (when it increased from 10,000). But Labour weren't around by then and the Coalition played politics over it to force through the rise in fees to 9k by saying "look at our shiny new system with lower monthly repayments - you'll be so much better off than if you went to uni under Labour". Politics for you. They only decided to uprate the Labour threshold by inflation, leaving it lower. If Labour had have still been in power in late 2010, they'd have almost certainly kept the same system going for everyone and raised the threshold for everyone, not just new students.

    But even then the 21k plan 2 threshold was going to be frozen until 2021 when the plan 1 threshold would have nearly caught up anyway. But then the incompetent Theresa May came on the scene, called a snap election, threw the system into political chaos and made a knee-jerk decision to raise the plan 2 threshold to 25k and uprate it with earnings. Ridiculous!

    Then recently the independent Augar review report came out and is recommending the threshold be lowered to 23k but only for future students under a new "plan 3" system. It is also recommending the payback period be increased to 40 years, also only for plan 3 loans. The government haven't made decisions about what to do but how can it be fair to leave plan 2 people paying nothing or next to nothing back at the expense of everyone else?
    Originally posted by Ed-1
    What a ridiculous mess, thanks for that history lesson. I wish I could be given the option to "re-mortgage" my student loan if you will. I can't believe how much more I keep paying every month. When I graduated I figured... oh it will be a lowish, flat fee monthly. No problemo.
    • Adams18
    • By Adams18 14th Jun 19, 4:33 PM
    • 103 Posts
    • 18 Thanks
    Adams18
    • #7
    • 14th Jun 19, 4:33 PM
    • #7
    • 14th Jun 19, 4:33 PM
    I think the whole thing is ridiculous, you borrowed the money, pay it back and move on with your life
    Originally posted by Socajam

    What part do you find ridiculous?
    • sheramber
    • By sheramber 14th Jun 19, 6:53 PM
    • 7,073 Posts
    • 5,334 Thanks
    sheramber
    • #8
    • 14th Jun 19, 6:53 PM
    • #8
    • 14th Jun 19, 6:53 PM
    750 is 9% of 8333 plus 1577 monthly disregard means a monthly income of 9910.

    Do you really think that 750 out of 9910 is a large amount?

    When you signed for a student loan you didn't sign an agreement to pay it over a number of years. You signed to pay it as a percentage of your income.
    • Adams18
    • By Adams18 14th Jun 19, 6:58 PM
    • 103 Posts
    • 18 Thanks
    Adams18
    • #9
    • 14th Jun 19, 6:58 PM
    • #9
    • 14th Jun 19, 6:58 PM
    750 is 9% of 8333 plus 1577 monthly disregard means a monthly income of 9910.

    Do you really think that 750 out of 9910 is a large amount?

    When you signed for a student loan you didn't sign an agreement to pay it over a number of years. You signed to pay it as a percentage of your income.
    Originally posted by sheramber

    Of course I think 750 out of 9910 is a big amount leaving my pocket. Same reason I think paying 250 pounds a month for a gym is too much, and 150 for a phone contract a month is also to high.

    "You signed to pay it as a percentage of your income" - I must have missed this small print being a 17 year old boy.

    I paid 4500 on that 9910. I don't think that is reasonable, same way a mortgage term for 10 years isn't reasonable for everyone.
    • agrinnall
    • By agrinnall 15th Jun 19, 7:47 AM
    • 22,820 Posts
    • 18,841 Thanks
    agrinnall
    I must have missed this small print being a 17 year old boy.
    Originally posted by Adams18

    But you're a big boy now, perhaps it's time for you to grow up.
    • theoretica
    • By theoretica 15th Jun 19, 11:19 AM
    • 6,016 Posts
    • 7,458 Thanks
    theoretica
    You do have an option - take out a commercial loan on whatever terms you can find that you like and pay off the entire student loan. Then they will be out of your hair completely.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • sheramber
    • By sheramber 15th Jun 19, 12:07 PM
    • 7,073 Posts
    • 5,334 Thanks
    sheramber
    Of course I think 750 out of 9910 is a big amount leaving my pocket. Same reason I think paying 250 pounds a month for a gym is too much, and 150 for a phone contract a month is also to high.

    "You signed to pay it as a percentage of your income" - I must have missed this small print being a 17 year old boy.

    I paid 4500 on that 9910. I don't think that is reasonable, same way a mortgage term for 10 years isn't reasonable for everyone.
    Originally posted by Adams18
    So are you asking HMRC to pay less tax and NIC as that amounts to much more than your student loan?


    If you didn't read your student loan agreement before you signed it that is your fault. I hope you now know you should not sign anything without reading and understanding it first.
    • badmemory
    • By badmemory 19th Jun 19, 4:14 PM
    • 2,690 Posts
    • 4,304 Thanks
    badmemory
    Is a 17 yr old able to take out a loan/sign a loan agreement?
    • sheramber
    • By sheramber 19th Jun 19, 6:13 PM
    • 7,073 Posts
    • 5,334 Thanks
    sheramber
    Student Loan available form age 16

    https://www.saas.gov.uk/full_time/ug/young/eligibility_age.htm
    • thetechguy
    • By thetechguy 29th Jun 19, 6:29 PM
    • 2 Posts
    • 1 Thanks
    thetechguy
    i'm on plan 1 too so i can sympathies with you over the large amount coming out of your pay each month but to be honest i'd rather be on plan 1 than plan 2 with it's 6% interest rate and never having it paid off.

    At least with plan 1 most of that payment is going to reducing the loan instead of going into Whoever's pocket who bought the loan book from the government.
    • Lorian
    • By Lorian 29th Jun 19, 6:51 PM
    • 4,849 Posts
    • 2,827 Thanks
    Lorian
    Paying 4500 in taxes and deductions in one month is heart breaking sorry if I sound ungrateful, but doesn't seem reasonable to me.
    Originally posted by Adams18
    As long as you aren't a higher rate tax payer (including the bonus) you should get some of that tax back in subsequent months.....
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