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Money Troubles

BunnieBunnie TheSite's sweetie piePosts: 6,099
I found out the other day I am having to pay back £214 a month for the next 10 years for my graduate loan.

I took out £15k.

Can someone tell me if this is normal? As it is far too much and I cant afford to pay it.

If it is right, I was told by the bank I could pay it off tomorrow if I wanted and then would only pay £16,100.

Can I get another loan and do this that has a lower interest?

Oh help, I am in a pickle!
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Comments

  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    It does seem a bit high. I borrowed £10k over 5 years which costs around £210 a month.

    If I wanted to stretch it out over 10 years, I would expect a monthly payment around £150.

    I would shop around, cos that graduate loan doesn't seem very competitive.

    Keep in mind there will be a cooling off period, so if you have only took this loan in the last ten days, then take advantage of the cooling off period.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Student loans are different from graduate loans Saz, but otherwise you'd be right.
  • BunnieBunnie TheSite's sweetie pie Posts: 6,099
    Calvin wrote: »

    Keep in mind there will be a cooling off period, so if you have only took this loan in the last ten days, then take advantage of the cooling off period.

    No I took it out in 2006 and it was interest free for a year and a bit - whilst I was studying and in Jan they started the repayments.

    xsazx - it isnt a student loan, it is a graduate professional loan. I was thinking calling them was the best idea, but I cant see it helping, as I would eventually have sky high repayments and there is no guarantee I will have a better paid job in 2 years.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
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  • BunnieBunnie TheSite's sweetie pie Posts: 6,099
    Hello love, I shall stick my professional hat on for a second.

    When you say the repayments are far too high for you to cope with, have you done a budget that shows this? If not, that's absolutely the first step. Doing a budget shows you exactly where your money is all going and if there are any areas you can cut down on and economise with. The bank will expect you to do this and to have cut out absolutely all non essentials before saying you cannot afford your repayments, and they have nationally recognised guidelines drawn up by the BBA (British Banking Association) that they use to assess your budget.

    Yeah :( My budget is pretty straight forward as I just pay the rent and Steven pays all bills etc.

    So I pay rent, insurance, phone and travel. Although I can probably deal with the repayments I wouldn't be left with anything, e.g. popping to shop for bread and milk etc.

    Dad is paying for it at the mo :( but that obviously cant go on for 10 years.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
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  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    This is crazy! did they not discuss with you the likely payments when you originally took out the loan?!

    anyway if you cant afford it discuss it with the bank - they would probably be able to make an arrangement with you to pay smaller installments (which you must stick to).

    I don't think getting another loan to pay off a loan is a wise idea.

    If you are going to do a budget make sure you list absolutely EVERYTHING and overestimate rather than underestimate on your pricings.
  • BunnieBunnie TheSite's sweetie pie Posts: 6,099
    I'm not trying to get at you at all, so please don't get offended, but who pays for things like cigs and the pub?

    well I pay for my cigs, but I dont go to the pub now :( and if we ever get a bottle, Steven pays for it, but he is poor too so we aint had wine in ages.

    I know you aint trying to get at me hun, dont you worry. I appreciate the help :)
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    lacrymosa wrote: »
    Was it a loan for your LPC? If so, sounds about right. All of my friends are going to be paying back £223 a year for 10 years and when I looked into doing it, it was like that too. The interest over the 10 years is something like £7,500! Its why I've decided not to do the LPC this year. Must ring up BPP and tell them I want to withdraw my offer...:(
    ??? I don't know anyone who has to pay for their LPC. Why don't you get your training contract before embarking on the course - they pay all your (CPE/)LPC fees, plus up to like 6k/year towards living costs.
  • BunnieBunnie TheSite's sweetie pie Posts: 6,099
    Need2Vent wrote: »
    ??? I don't know anyone who has to pay for their LPC. Why don't you get your training contract before embarking on the course - they pay all your (CPE/)LPC fees, plus up to like 6k/year towards living costs.

    err, do you not think we tried? Blimey, I didnt just think, I know, I will throw money down the drain for the craic! and I know Lacrymosa has money to burn!

    Not many people nowadays get sponsored, so you know lucky people.

    Lacrymosa, yeah it is for LPC, and I dont blame you for putting it off a year.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Need2Vent: there you go again, mouthing off about things you don't understand. There is a country outside the Square Mile, you know.

    Very few people get a funded LPC unless they get a training contract with a top City firm, most high street firms and charities won't pay for the LPC. Hell, even the CPS won't pay for your LPC.

    I'm having to pay for my LPC and so is my boss (who's taking the same course as me at the same time at the same college). We work for a national charity specialising in social welfare law. No funding for us.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Wow, didn't know that.

    Anyway, no need to be rude - everyone I know (= hundreds of law students/grads, not just a tiny/miniscule minority, and not just at magic circle / Square Mile firms) gets a training contract, then does their CPE/LPC with everything paid for, no mention before that this is exclusively reserved for certain firms.
  • BunnieBunnie TheSite's sweetie pie Posts: 6,099
    Need2Vent wrote: »
    Wow, didn't know that.

    Anyway, no need to be rude - everyone I know (= hundreds of law students/grads, not just a tiny/miniscule minority, and not just at magic circle / Square Mile firms) gets a training contract, then does their CPE/LPC with everything paid for, no mention before that this is exclusively reserved for certain firms.

    How do you know hundreds of law students exactly? Did you study law? Where are they all? I know probably around a hundred from both unis and I could count the people on one hand you have been sponsored.

    It is of course only reserved for certain firms, those who can afford it.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Need2Vent wrote: »
    Anyway, no need to be rude

    Rude? Who was rude?

    The only rude person was you, poppet, talking to lacrymosa and bunnie as if they are stupid.
    everyone I know (= hundreds of law students/grads, not just a tiny/miniscule minority, and not just at magic circle / Square Mile firms) gets a training contract, then does their CPE/LPC with everything paid for

    You know hundreds of law graduates and every single one of them got a paid training contract?

    I don't believe you.

    I'm a Durham graduate and only about 15% of the people I knew of got a funded training contract. I know Oxbridge graduates who couldn't get a funded training contract. I'm working in the legal field and I can count on the fingers of one hand the number of people I've come across who got a funded LPC.

    Nearly everyone has to pay for it. Some, like at Northumbria University, do it as part of their degree. Others do it part-time, like my boss and I are, and others take a year out of work to do it.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    I was at London School of Economics, one of my main social groups was the law students, have also met a lot of young lawyers at networking events etc. From my experience it seemed a 2.1 from LSE and a fairly blank CV is sufficient to land a good training contract.. in fact I know people with 2.1s from Leeds, Sheffield, Newcastle who got magic circle contracts at Clifford Chance, Allen & Overy, Linklaters etc. All fully funded except those opting to do human rights law / working for NGOs etc. HOWEVER, landing a barrister pupillage seems incredibly, incredibly tough, loads of really good people I know tried and failed so instead switched from BVC to LPC or changed career paths.
  • BunnieBunnie TheSite's sweetie pie Posts: 6,099
    Do you not think that by meeting people at Trainee Socials mean that you are therefore not seeing the people who haven't got Training Contracts, and therefore are only a small group of those who have done the degree/LPC?

    I personally think you are talking balls...but hey! What do I know!
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Bunnie wrote: »
    Do you not think that by meeting people at Trainee Socials mean that you are therefore not seeing the people who haven't got Training Contracts, and therefore are only a small group of those who have done the degree/LPC?

    I personally think you are talking balls...but hey! What do I know!


    Just a bit contradictory there - how can he be talking balls if he is only speaking from his experience, hence factual to him?

    The only thing he has done 'wrong' is to lack the knowledge outside what he knows.

    Hardly the end of the world, anyway. I hope you get your problem sorted.
  • BunnieBunnie TheSite's sweetie pie Posts: 6,099
    g_angel wrote: »
    Just a bit contradictory there - how can he be talking balls if he is only speaking from his experience, hence factual to him?

    The only thing he has done 'wrong' is to lack the knowledge outside what he knows.

    Hardly the end of the world, anyway. I hope you get your problem sorted.

    I meant his 'factual experience' is balls when he is referring to all these people having Training Contracts

    But as you say, this is not helping my money situtation, so if you dont mind, I would appreciate some advice...
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    To me it sounds like a lot, but I don't know a lot about these things.

    I guess one option would be to get in touch with a couple of banks and find out if they can give you a better offer.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
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  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Is it fixed rate? Just looking at the recent slashings of interest rates in America, it shouldn't be too long before more competitive loan deals filter through.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
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  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Ah well, still worth keeping an eye out ;)
  • BunnieBunnie TheSite's sweetie pie Posts: 6,099
    but I cant quit Ellie, it is the only thing I have left to enjoy :(

    I think I may have to get a bar job or something, which I really dont want to have to do.

    I am tired as it is. :grump:
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    i like to think of smoking as money saving exercise as if you quit you might eat more, spending extra on food and having to buy a whole new wardrobe too...
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Before creditors will accept that you cannot afford the repayments they will expect you to cut all non-essential expenditure out of your budget. This doesn't just include smoking and drinking alcohol, it also includes a fair wedge of grocery shopping, and such like.

    For a couple in your circumstances creditors won't accept any expenditure on cigarettes, alcohol, magazines and only very limited expenditure on things like clothes. They will expect you to spend no more than about £50 per week (£217 per calendar month) on groceries, including deodorant and cleaning materials. Expenditure on the TV, on the telephone, and on the internet would need to be cut too.

    It's harsh, but tbh I do side with the creditors. If you were owed money and the person who owed you it spent all their money on cigs then you'd be irritated. It works the same way with the bank.

    If you are really struggling financially make an appointment with the CCCS. But bear in mind that the CCCS are very strict on budgets and you won't have much fun if you need to go on a debt management plan with them.

    ETA: If you want help in sitting down and drawing up a budget that creditors are likely to accept then I'm more than happy to lend a hand. I'm sure Ellie would be happy to as well. But if you genuinely cannot afford the loan repayments then it's not going to be painless:(
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
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  • BunnieBunnie TheSite's sweetie pie Posts: 6,099
    I am truly concerned I have a bad deal with this loan though, Steven has worked out I am paying £1500 a year just with interest alone.

    Thanks for the advice guys, looks like my life is about to become rather boring - well more so :p
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Bunnie wrote: »
    I am truly concerned I have a bad deal with this loan though, Steven has worked out I am paying £1500 a year just with interest alone.

    Thanks for the advice guys, looks like my life is about to become rather boring - well more so :p

    Get a better loan to pay it off. ?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    I wouldn't have put it QUITE so bluntly!

    It wasn't that blunt:(
    calvin wrote:
    Get a better loan to pay it off. ?

    Shopping around for a better loan might not be such a bad idea, but be careful of taking out a loan that is for more than what you originally borrowed.
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