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Student loan interest / payment con?

2 replies

Lemonysherbet · 01/08/2019 19:52

Not sure if this is the right place to post. I've just received my annual statement and noticed I am charged interest monthly therefore guessing it's compounded. HMRC deduct my repayments monthly but only declare them to the student loans company annually. Therefore I'm paying interest on amounts I've technically paid off. Who's benefitting? Do HMRC hold that cash for the year and they pay it over?

OP posts:
NeverTwerkNaked · 03/08/2019 10:08

I noticed this in my statement, totally agree.
Especially as student loan co clearly have up to date info on payments because I rang them to organise paying off my loan and they knew even my most recent payment. Do it is a total scam.

kamelo · 04/08/2019 16:29

The APR quoted is the annual interest rate, Even if interest is applied monthly the total would not compound up to more than the APR. If it did it would be illegal.

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