Dilemma

kindai said:
Get her to take out a personal loan to cover it? At least then its a "manageable" amount each month she knows is going out of her outgoings and teacher her some financial responsibility.
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Take a loan to cover repayment of another loan? Why not just get a credit card to pay it all off in one go? ;)
 
If she’s working 30 hours a week and living at home, she can afford to pay it back herself. She’s unlikely to learn unless it actually impacts her unfortunately.
 
mjt said:
Take a loan to cover repayment of another loan? Why not just get a credit card to pay it all off in one go? ;)
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Well I imagine the reason shes in tears is they worked out she didnt use the money to go to university, and is coming asking for it all back in 1 go.

Also, bumping it onto a CC... bad idea as you know without a set repayment schedule it will just be left to rot.
 
How about she gets another job, 12 hours a week is about £400 a month before deductions, so in a year that would be her debt paid off (plus whatever she can spare from her other job)

Certainly better learning experience, £4K isn't too much to screw her over for 10 years.
 
Honestly, I don't get this. How can she owe £4,500 in one go on a student loan? Don't you pay them back over the course of forever? I've only just finished mine. Have the terms changed drastically at some point?

Unless something weird has happened she'll pay it back at some unimaginably low rate over many many years. It's the cheapest loan she'll ever have and there's basically no downside to it taking forever. Don't bail her out.
 
Vonhelmet said:
Over the fullness of time you'll win no more on average than the barest level of interest.

It's the lottery for people who think they're too smart to fall for doing the lottery.
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Indeed, whoever invented PBs was a genius tbh or simply showed us how incredibly stupid many people are with their hard earned even when the prizes were far better.
 
Have you told her where the money had come from? I would say that you have paid it from your pocket and that she has to pay it back in instalments at whatever rate suits the pair of you. Clears the debt and teaches her an important life lesson.

Whatever she pays back to you out into a savings fund. Then return it to her once she gets a house so it can go towards furnishing.

Oh and tell the wife.
 
Won't it simply be automatically deducted in bits from her wages, if they exceed the threshold?
 
This all seems a bit dramatic, £4,500 is not a lot of debt especially for someone living at home. Also assuming this is a government student loan then she is not required to pay it back until she earns a certain amount a year and working at Next for 30 hours a week isn't going to breach the threshold.
 
kindai said:
Well I imagine the reason shes in tears is they worked out she didnt use the money to go to university, and is coming asking for it all back in 1 go.
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Unless they've changed something in the last couple of years, this doesnt happen, otherwise you'd have thousands of people who've dropped out for whatever reason suddenly finding themselves with debt collectors at the door for £££. When I was studying, the loan wouldn't be released to you unless you'd enrolled as well, so if she didn't actually go to uni, at most she would have gotten the first installment

Certainly doesn't sound like a proper student loan... either that or your daughter has just conned you out of £4.5k ;)
 
Tell the wife -
no idea why it needs paid back instantly. This is taken from the Student loans company - She's not likely to be over the initial threshold so why pay it back?


Income each year before tax Monthly salary Monthly repayment
Up to £17,775 £1,481 £0
£18,500 £1,541 £5
£21,000 £1750 £24
£24,000 £2000 £46
£27,000 £2250 £69
£30,000 £2500 £91
£30,000 £2500 £91
 
Vonhelmet said:
Honestly, I don't get this. How can she owe £4,500 in one go on a student loan? Don't you pay them back over the course of forever? I've only just finished mine. Have the terms changed drastically at some point?

Unless something weird has happened she'll pay it back at some unimaginably low rate over many many years. It's the cheapest loan she'll ever have and there's basically no downside to it taking forever. Don't bail her out.
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Correct me if I'm wrong-it's been a while since I read the small print.

I believe that one of the conditions of paying off your loan via PAYE... is that you actually attended University.

I think there's something in the contract about being liable to return the money if you never actually attended.
 
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