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student loans and debts......

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
edited March 27 in Work & Study
Well I have graduated this year with a total debt of around £15,500 over three years, all of it is through the Student Loans Company.........what I want to know is, am I being charged above inflation interest for this debt? As far as I was aware, the amount only rises with inflation, and so is effectively interest-free, can anyone confirm this? I only ask because a friend was worrying me the other day saying they checked their debt and it was rising by some stupid amount every month........this can't be right surely?.....
Post edited by JustV on

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    From what the student loans company have told me the interest rate is exteremly low, that you only pay back whwen you reach a set wage limit, that if not paid within so many years it will be written off etc.. basically when you are earning over this limit they take out money for repayment, but its such a low amount you probably won't miss it. I'm certainly not worried about repayments, its not like theyre going to demand all the money back at once are they?
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    satehen wrote:
    From what the student loans company have told me the interest rate is exteremly low, that you only pay back whwen you reach a set wage limit, that if not paid within so many years it will be written off etc.. basically when you are earning over this limit they take out money for repayment, but its such a low amount you probably won't miss it. I'm certainly not worried about repayments, its not like theyre going to demand all the money back at once are they?

    i'm not too worried about the repayments as they are manageable, i'm more worried about it spiralling out of control before i can start repaying it........i'm curious when you say they write it off......after how many years and where did you hear this?.......
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I can't remember now, but its definatly worth googling, if its true that is. i heard it off friend.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    some PGCE students get paid off for them
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    The SLC interest rate is about 3%, which is the level of infaltion according to the Retail Prices Index.

    The amount will rise, and 3% of £15,000 isn't a small amount of money.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    You never actually see your student loan money anyway, so you dont actually ever notice it going, it just disapears out of your pay before you get it.
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    littlemissylittlemissy Posts: 9,972 Supreme Poster
    It all depends on when you started uni. I am presuming that as you have just graduated it was after Sept 1998. Having looked at the Student Loans Company's website it says this:
    Repayment will not be over a fixed period. Repayment details differ in that repayments will be calculated as a percentage of income above the £1,250 per month (£15,000 per annum) threshold. This marginal income percentage is set at 9%. So, the level of repayments will rise or fall directly in line with your income. This means that the length of time over which you will repay your loan will depend on your income after graduation and on the total amount you have borrowed.

    Taken from this page on their website. It is worth a looksie. It is in clear English and should answer any questions you have.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Kermit wrote:
    The SLC interest rate is about 3%, which is the level of infaltion according to the Retail Prices Index.

    The amount will rise, and 3% of £15,000 isn't a small amount of money.


    Thats why people should consider the financial value of going to university, not just undertake a course for academic enjoyment. Its one thing doing a course you really enjoy, its another facing the reality that you are saddled with debt, which takes a large chunk of your salary each month.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    My boyfriend pays about 50-60 quid per month on his student loan...they are extremely low interest rates and not too unmanageable to pay back per month, just takes a long time to pay it back though!
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