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Student Loan

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
Got a letter from the loan company basically saying that after income assessment I'm entitled to £650 more than what I received over the course of the year (£2800 spread over 3 payments). I think this is due to them reassessing after they realised my brother had started university in Newcastle.

Thing is, I have the option to just ignore the letter and not receive any further payment or I have the option to take as much of the £650 that I want. The money would come in real handy as I'm broke at the moment, but just wondering what people think of student loans. This is aimed more at people who are currently paying them off. Is it really quite a burden to pay? Do you regret taking as much as you did? Or maybe you think you didn't get enough?

Just trying to decide whether I should go for the extra cash. It's currently looking quite likely.

Comments

  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Student loans from the SLC are charged at the same interest rate as the retail Price Index, which basically means that they are free. You only pay the inflation.

    I would take the money. You don't pay it back until you earn over £15,000 anyway, the money is deducted at source by your employer through PAYE, so you won't even notice it's gone.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    This year I lived at home at recieved a bursary so didn't take out a loan, but I'm doing so next year. It did bother me when I first thought about it, but as Kermit says it's about $35 a month or so, and only when you're earning 15k.

    clicky
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Wow... I don't have a job right now, so I have no idea how much I'll be earning, but right now it looks like I might be dead before it's paid back!!
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Like Kermit says its free money. If you pay interest on it, put it in an ISA which is garunteed to beat inflation and you're receiving however much free money every year. But either way, it's the best loan rate you'll ever get - you pay back what they give you - not more or less.
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