I am not happy with Plan 1... am I the only one here?
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[Deleted User]
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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.
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.
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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.
Don't think anyone can say they are happy to repay debts0 -
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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!!
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?0 -
I think the whole thing is ridiculous, you borrowed the money, pay it back and move on with your life0
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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?
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.0 -
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£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.0 -
£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.
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.0 -
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 Carroll0
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