Student Loans

86JR

86JR

86JR

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Apparently (according to the newspapers, radio, tv etc) student loan this year interest rates are 0% for most of us and negative interest for older people.

So why do i get a statement stating that im 9k in debt and they are charging me £25 a month in interest, every month, for the last 5 years ?

Its actually going up. I tried to ring them but all i get is one of those automated machines.

Source :

Interest from September 2009 to August 2010

For the academic year covering 1 September 2009 to 31 August 2010, the government decided not to apply an interest rate for income contingent Student Loans – which effectively means the rate is zero per cent.
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http://www.direct.gov.uk/en/Educati...udentLoansCoursesStartingFrom1998/DG_10034867
 
right they are charging you intrest for the last 5yrs, you dont mention the future and just because they arnt charging you intrest doesnt mean they arnt taking payments
 
it's not '0%' - it's 0% relative to inflation. So you are supposed to pay the the same worth of money, even if that figure is a different figure to the amount you borrowed.

Otherwise we could all buy new cars for £500 and houses for £5000, but it's not 1970 anymore.
 
Thats rubbish, my last statement before I paid it all off this year had positive interest applied, and I graduated in 2004.
 
Basher said:
I foresee this turning into a to pay off or not to pay off debate.

For the record, I don't understand why anyone would pay their Student Loan off before they had to.
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Theres not a paid off before date, it gets taken from your payment every month but obviously interest is charged every month you dont pay it off
 
I had similar issue, so I collected all my saving and I paid off the loan... now am happy
 
Beerbaron said:
Theres not a paid off before date, it gets taken from your payment every month but obviously interest is charged every month you dont pay it off
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Yes, I am well aware of that. What I mean is I don't understand people who decide to pay it off in a lump sum, rather than until it is cleared through monthly salary sacrifice.

e.g. As above. Makes little financial sense.
 
Once I moved abroad and effectively stopped paying UK tax, I still had to do my tax return, and the student loan repayment for non taxpayers is a mandatory £250 a month, so after being hit with a big bill for the 2008/09 tax year from SLC, my remainder was very little so I paid it all off at once.
 
panthro said:
Once I moved abroad and effectively stopped paying UK tax, I still had to do my tax return, and the student loan repayment for non taxpayers is a mandatory £250 a month, so after being hit with a big bill for the 2008/09 tax year from SLC, my remainder was very little so I paid it all off at once.
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I thought there was some magical loophole if you weren't working in the UK for 5years or something u didnt have to pay it back? ..don't have a clue where that actually came from
 
Shicky said:
I thought there was some magical loophole if you weren't working in the UK for 5years or something u didnt have to pay it back? ..don't have a clue where that actually came from
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Dont know, I got a letter from them when I stopped paying that if I didnt start making mandatory payments or tell them my financial situation, they would fine me £150.
Im still employed by a UK company and get paid in sterling, and still have to do a tax return, so HMRC and everyone else associated know exactly how much I get paid and how much I owe to the SLC.
 
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