Student loan repayment

Nutty_Death

Nutty_Death

Nutty_Death

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5 Apr 2004
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1,215
Has anyone else noticed how with student loans you pay from your salary each month but it doesn't come off the capital till the end of the year.

They still charge you compound interest per month though...

Seems like a bit of a scam to me.

Either the money I pay per month should come off the capital per month or there should just be an annual interest charge at the stated rate.
I wonder what the apr rate equates to, or maybe the compound amount comes to the stated rate...
 
Nope. Nobody has ever noticed that. Written long complaints about it or challenged the government on it.
 
Everyone I know has so much debt and yet pays so little per month, none will ever pay it back, no wonder we are headed for trouble with it all
 
The whole thing makes no sense to me, even if I continue paying for the remaining 17 years at the rate I'm currently paying back it won't make a dent in the total owed, then it's wiped out. Having said that I have no real idea how it works anyway.
 
Yes, I've noticed this. It's a bit strange isn't it? I don't know if it's the case that their online record rarely gets updated. Haven't actually looked at a printed statement though.
 
Deaths_Calling said:
Has anyone else noticed how with student loans you pay from your salary each month but it doesn't come off the capital till the end of the year.

They still charge you compound interest per month though...

Seems like a bit of a scam to me.

Either the money I pay per month should come off the capital per month or there should just be an annual interest charge at the stated rate.
I wonder what the apr rate equates to, or maybe the compound amount comes to the stated rate...
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You should double check the compound interest. I believe it takes into account the payments but only at the end of the tax year with the final statement.
 
LeMson said:
Not sure what you mean (been a long long day then the England match lol) and, you don't start paying back till 25k, and it's not much per month.
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Depends on which type (i.e. what year you took it out). The 9% at 18k is the Plan 1 (start date prior to 2012), For after that date it's Plan 2 and 25k.

There's also voluntary contributions and fixed repayments if you're abroad. Currently paying of a fair chunk a year and hopefully it'll be gone in about 2-3 years.

PureAppleJuice said:
Yes, I've noticed this. It's a bit strange isn't it? I don't know if it's the case that their online record rarely gets updated. Haven't actually looked at a printed statement though.
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IIRC it's something to do with the fact it's collected by one department, but apparently SLC are not provided with the information until the end of the year so can't update the records until then.
 
Amp34 said:
IIRC it's something to do with the fact it's collected by one department, but apparently SLC are not provided with the information until the end of the year so can't update the records until then.
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Wow they should get some computers, a server, a network, software and boom, instant (well maybe a few ms) updates

OK I know they would blow a billion on the system and it would be worse than writing the info on a cave wall in poop but still..
 
And of course whoever holds the cash all year (tax man in this case) will of course make interest on it.

If the tax man gives your rebate late, you can charge interest. Can we insist they pay that interest to SLC?
 
What happens to your Student Loan if you move abroad? I think you are supposed to tell them and pay it manually, but what happens if you just drop off the PAYE system and don't inform them?
 
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Lopéz said:
What happens to your Student Loan if you move abroad? I think you are supposed to tell them and pay it manually, but what happens if you just drop off the PAYE system and don't inform them?
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They send you a letter and email asking why you've stopped making payments and ask you to update them with your current situation. I had to fill in a form online and submitted a payslip and now waiting for them to get back to me.
 
Maccy said:
They send you a letter and email asking why you've stopped making payments and ask you to update them with your current situation. I had to fill in a form online and submitted a payslip and now waiting for them to get back to me.
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Well that's the idea....they are totally hit and miss. Some people they totally get on your case straight away, other times they don't seem to give a toss and don't contact you for years.
 
mid_gen said:
Well that's the idea....they are totally hit and miss. Some people they totally get on your case straight away, other times they don't seem to give a toss and don't contact you for years.
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I'm quietly hoping it's the latter ;)
 
They are occasionally resourceful. They sent a debt collector half way round the world after my other half. Yet I just pay them a few installments every few years and they don't bother me.
 
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