Student loan, it sounds too good to be true :s

willhub

willhub

willhub

Caporegime
Joined
3 Jan 2006
Posts
25,273
Location
Chadderton, Oldham
Hi.

Well I'm planning on taking out a student loan, and I've been reading, and if it's what it sounds like

On the site it says, you only start paying back when you earn over £15,000 a year, and once you are earning over that, you then start paying it back, but they can only touch what you earn over £15,000 a year, so if I was earning £15100 a year, they could only take money form that £100, and apparently what it seems is, I wont need to pay much more back than I borrowed due to something which I am unaware about.

Is this right? Or have I missed something? It's what my dad seems to think aswell.


Thanks
Willz.
 
Last edited:
That is correct. Remember you will still have a large loan, and although the interest rate is small compared to most other loans, there still is an interest rate. Most people end up taking decades to pay off their student loan. (Me included :()
 
Its for uni students, for the sounds of you post your a college student (to be honest) so im pretty sure it wont apply
 
willhub said:
and apparently what it seems is, I wont need to pay much more back than I borrowed due to something which I am unaware about.
Click to expand...

Thats because the interest rate for student loans is inflation, which the government are very keen to keep under 2%. For comparison the going rate for mortgages (the second cheapest loan you'll ever get) is around 6%. You can get a student loan, stick it in a savings account like a cash ISA and you'll be earning more interest than you're paying.
 
I took out 2 student loans in 94 and I still ain't paid them back.....the repayment they ask for is about £20 a month but I earn about £20-30 a year under the threshold which is a lot higher than £15,000 and gets raised every year, maybe it's changed since I were a lad
 
scorza said:
Thats because the interest rate for student loans is inflation, which the government are very keen to keep under 2%. For comparison the going rate for mortgages (the second cheapest loan you'll ever get) is around 6%. You can get a student loan, stick it in a savings account like a cash ISA and you'll be earning more interest than you're paying.
Click to expand...

i like that plan
 
I calculated how much they'd loan me if/when I start studying in London next year. Using their online calculator. Turns out they'd give me £5K+. :eek: Wasn't expecting that.
 
scorza said:
Thats because the interest rate for student loans is inflation, which the government are very keen to keep under 2%. For comparison the going rate for mortgages (the second cheapest loan you'll ever get) is around 6%. You can get a student loan, stick it in a savings account like a cash ISA and you'll be earning more interest than you're paying.
Click to expand...
As of this month the interest rate will be ~4.8% IIRC.
 
You wont get it with a normall colledge course. A few colledge course will probably get you the loan. But not the majority.

As said it's for uni students.

You pay 9% of anything above 15k and the interest is probably £40 a month so it is a lot of interest. I really don't believe it's the cheapest loan, unless you can pay it back within 7 years. Or not pay it off until you retire, where it becomes void.
 
Yeah its 4.8% now so cash ISAs are starting to look less appealing for the hassle. What would it be now, about £10 a month gain?
 
Last edited:
AcidHell2 said:
You wont get it with a normall colledge course. A few colledge course will probably get you the loan. But not the majority.

As said it's for uni students.

You pay 9% of anything above 15k and the interest is probably £40 a month so it is a lot of interest. I really don't believe it's the cheapest loan, unless you can pay it back within 7 years. Or not pay it off until you retire, where it becomes void.
Click to expand...

So there is no student loans that are almost the same for people who go to college? :(
 
As far as I know no. College is usually under 18's in which case no tuition fees and parents are expected to pay.
If your over 18 and don't live with parents IIRC there are funds and grants available to you but not a student loan.

why do you want a loan?
 
Nope, you could prehaps get a bursary or a grant specific to your college course but I wouldn't know where or how you get that.

If you want to take out a loan this early though, you are crazy and need to ask yourself why you want to burden yourself with debt. They still are not even that wise at University if you don't need them its just that they are presented as a standard thing to get.

Put it this way, my brother is 30, earns 50k a year and still hasn't paid off his loans from 10 years ago this is before top-up fees and his loans are going to be about half of what mine are. Simply put if you go to university or take out a loan you are going to be paying it off for a very very long time possibly never.

Loans are nasty horrible things.
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom