Student Loan Repayments

Randomface74 · 2 Sep 2010 at 12:09

My student loan payments didn't 'automatically start'. I had to get my employer to start them. Plus voluntary payments, I had a maxed loan paid off in 3 years.

Basher · 2 Sep 2010 at 12:13

billysielu said:
My student loan payments didn't 'automatically start'. I had to get my employer to start them. Plus voluntary payments, I had a maxed loan paid off in 3 years.

Just out of interest why did you do that vs putting the money you would have done that with into a savings account paying a higher %?

Basher · 2 Sep 2010 at 12:14

Phoenixdancer said:
so whats the intrest on a 3 year course when im getting 3.5k tuition and 3.5k in maintaince

:0

Depends on what inflation is when it's measured.

kiwi · 2 Sep 2010 at 12:49

There really is no point in paying off early, even if the thought of being debt-free appeals to you, if you have for example £10k to pay off a student loan in one go, you'd be better using that as a mortgage deposit (or car, holiday etc) in a few years time than paying off the student loan and having to get a high-street loan at a much higher rate.

muon · 2 Sep 2010 at 12:53

I was the first year to go into the new tuition fee system. The interest rates I've faced are

2010/11 1.5%
2009/10 0% <------------ this one should have been -0.4% but the government managed to talk their way out of it
6 March 09- 31 August 09 1.5%
6 February 09 - 5 March 09 2%
9 January 09 - 5 February 09 2.5%
5 December 08 - 8 January 09 3%
1 September 08 - 4 December 08 3.8%
2007/08 4.8%
2006/07 2.4%

I maxed out tuition fee loans (obligatory for my degree) and maintenance loans available for London students and have £25k in debt.

matthab · 2 Sep 2010 at 12:56

I maxed out tuition fee loans and maintenance loans available for London students and have £25k in debt.

WHOAH

muon · 2 Sep 2010 at 13:00

matthab said:
WHOAH

Thats a pretty normal figure. £3k+ for 3 years (for tuition) and £6k loans each year with £4k in the final year (for maintenance).

You only pay it off if you work anyway. The terms of these loans are overly generous in my opinion. I've expressed my opinion elsewhere in more detail, but essentially these interest rates are too low and the amnesty after 25 years is stupid.

matthab · 2 Sep 2010 at 13:15

ghost101 said:
Thats a pretty normal figure. £3k+ for 3 years (for tuition) and £6k loans each year with £4k in the final year (for maintenance).

You only pay it off if you work anyway. The terms of these loans are overly generous in my opinion. I've expressed my opinion elsewhere in more detail, but essentially these interest rates are too low and the amnesty after 25 years is stupid.

Im shocked you can generate that huge debt up. Im 20 and decided uni wasnt for me but landed a good IT job in the process and just finished studying part time.

Randomface74 · 2 Sep 2010 at 13:15

Basher said:
Just out of interest why did you do that vs putting the money you would have done that with into a savings account paying a higher %?

Because they screw you with the loans. They don't provide accurate information - if you ask them how much you owe they can't tell you. They'll tell you a figure, you'll pay it off, then you'll get a letter saying you still owe them money. All in all it's just a really bad relationship. Add to that the monthly shafting on the payslip - well worth being rid of the stress caused by having the loan.

It depends on your situation though, if you need the money for a house deposit - don't spank it on your loan obvo. I had the cash spare, and my loan was causing me hassle, so I got rid.

muon · 2 Sep 2010 at 13:26

matthab said:
Im shocked you can generate that huge debt up. Im 20 and decided uni wasnt for me but landed a good IT job in the process and just finished studying part time.

Of course, this is only one route to a career. A degree based route isn't necessarily the best for all careers. However, there are quite a few where its the only way.

Ask medicine students how much debt they rack up.