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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to think that mums should get some sort of concession for student loan repayments?

323 replies

bubbleymummy · 29/05/2009 10:19

I just got my student loan statement and yet another big whack of interest has gone on. I haven't been able to make any payments since I went on maternity leave 3 years ago because I only worked PT after ds. Now I have ds2 and who knows when I'll be back to ft work. dh on the other hand has paid back over half of his. It just seems a bit discrimatory to me...most women will have to take a salary drop at some stage to have a family and won't hit the threshold for repayments while the interest just piles on...shouldn't we get a bit of a break?

OP posts:
Original poster
bubbleymummy · 29/05/2009 10:20

oops - discriminatory

OP posts:
themoon66 · 29/05/2009 10:21

I think interest should stop being put on.

lottiebunny · 29/05/2009 10:30

Surely if they did that they would have to stop putting interest on for people out of work for medical reasons.

themoon66 · 29/05/2009 10:35

The whole student loan system is bound to collapse soon. I don't understand why the banks haven't pulled out yet. I don't know anyone who has paid theirs off yet.

Original poster
bubbleymummy · 29/05/2009 10:38

I agree themoon - It would be nice just to pick up where I left off in my repayments - not a few thousand worse off!

lottiebunny - I don't think that would be a bad thing either. If you can't work for whatever reason then it's a bit unfair..

OP posts:
lottiebunny · 29/05/2009 10:39

Didn't think that the banks had anything to do with SLC. I thought that the money was stumped up by the government.

mayorquimby · 29/05/2009 10:39

what about students unable to find work ast the moment? you can't just single out mums.

titchy · 29/05/2009 10:41

How about freezing mortgage interest payments when one of the mortgagees is on maternity leave as well.....

TheDevilWearsPenneys · 29/05/2009 10:42

I agree they should only raise the interest when you are making national insurance contributions. It's really not fair on people out of work or busy being parents.

Original poster
bubbleymummy · 29/05/2009 10:42

Well the reason I was focussing on mums was the discrimnation element to be honest. In comparison to men, women are going to have less opportunity to repay the loan (because of time out for having a family).

OP posts:
mayorquimby · 29/05/2009 10:45

well surely then only giving mums the break is equally discriminatory.

lottiebunny · 29/05/2009 10:47

Thing is though, its a loan. If they didn't add interest on they would be taking the risk that when you do start earning enough to start paying again, the loan would be worth less than when you took it out.

Its not nice that we have to pay interest on the loan, its disheartening that everytime I get a statement, there is loads of interest added and I haven't even finished my course yet but that is the nature of a loan.

Original poster
bubbleymummy · 29/05/2009 10:49

Does that make maternity leave discriminatory MQ? SHould husbands/partners get the same time off from work?

OP posts:
Umlellala · 29/05/2009 11:03

Well, in theory the interest rate is supposed to be set at inflation, so you aren't actually paying any 'extra' at all. (It's just what you could buy three years ago for £1000 might cost £1100 now, so that's why you have to pay more)

But I treat my enormous-- student loan it like a tax tbh (not a loan. t&c are different). At least we don't have to pay it back if you're not earning. Normal loan repayments don't take a maternity break.

lottiebunny · 29/05/2009 11:04

Of course maternity leave isn't discriminatory, its just a more specific medical leave and everyone is entitled to time off for medical reasons.

Your scenario is discriminating against people with no children since there are plenty of people who also haven't been paying back their loan for various reasons but wouldn't be entitled to this 'no interest' perk.

dilemma456 · 29/05/2009 11:26

Message withdrawn

Original poster
bubbleymummy · 29/05/2009 11:31

Ok I'm obviously putting my point across v badly - toddler and 11 week old keeping me busy Women and men could equally be unemployed or sick but only women will be on maternity leave and/or spend a larger proportion of their working life earning below the threshold because of children. I reckon if you did a survey most men will have paid off a lot more than women. This seems like an unfair advantage. I am in more debt than my husband with no means of paying it off because I am having and looking after our children. Would indirect sex discimination apply outside the workplace or is that only employment law?

OP posts:
Original poster
bubbleymummy · 29/05/2009 11:35

Thanks for the link dilemma. Unfortunately I fall in the middle category where my loan doesn't get wiped until I'm 65.

OP posts:
lottiebunny · 29/05/2009 11:38

Look at it another way. When you get to the end of the time period for paying it back (is it 25 years?), your loan will be written off and you will have paid far less than people who have been able to pay all this time. So you have actually gained because you haven't had to pay it, you've had money out that you haven't had to pay back.

The value of the loan is irrelevant since its not something that will be paid back for the rest of your life and doesn't affect your credit rating.

lottiebunny · 29/05/2009 11:42

What we should be pissed of about is that we should be getting our loans paid off from September(slowly of course) because the March interest rate was negative. Under the terms of the loan, the interest rate should be negative from September but its actually going to be 0% (OK not really anything to complain about but its the principle)

However, if they did this they would have to decrease the state pension as that is also done from March interest rate so we got screwed. Bloody wrinklies

BonsoirAnna · 29/05/2009 11:48

No I don't think so. Do you get a mortgage holiday because you are a mother?

Original poster
bubbleymummy · 29/05/2009 11:52

I wish mine was 25 years lottie - I'll be paying it back until I'm 65! There's also a difference between student loans and other loans - for most loans the interest is added on and the total payment due is spread over a number of months - you know how much you are going to be paying back. The student loan only gets paid if you reach a certain threshold. Most women will spend longer working below this threshold because of having children and it will take them longer to pay back and they will therefore be paying back more than men because of the interest added on for all the years they were unable to work.

OP posts:
MrsTittleMouse · 29/05/2009 11:55

Sticks hand up - me, me! I've paid mine off. I chose not to defer even though I was under the limit because I hate being in debt. I'm glad that I did now that we're house/mortgage hunting. Mind you, it did extend my living on baked beans years.

unavailable · 29/05/2009 12:55

Couldnt your husband contribute to paying it off? After all, it is because you are at home with the children that your individual income has diminished.

Isnt your student debt just like any other family expense in these circumstances? It seems a little unfair that he is paying off his own whilst your debt continues to rise.

Umlellala · 31/05/2009 07:58

Agree with lottiebunny. DON'T pay it off unless you have no other debts and really don't want to have it hanging over you. Had no bearing on our mortgage, although I guess it might now.

Ours is a one of many family debt though, yes. Don't intend to pay it off fully unless I win lottery and just want to rid myself of it completely. article on Money Saving Expert www.moneysavingexpert.com/loans/student-loans-repay explains why.

It really helps to treat it like a tax in your head, I think.