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Find financial and money saving discussions including debt and pension chat on our Money forum.

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Find financial and money saving discussions including debt and pension chat on our Money forum.

Money matters

Crikey! My student loan statement has come through and written sneakily on the back....

36 replies

Skyler · 22/10/2007 19:45

is the fact that the interest rate is DOUBLEING from 2.4% to 4.8%!!!! Anyone else think that is blooming outrageous??!!!!
We are not in a position to pay it back at the moment so I guess that is the way it goes but I am shocked at the increase .

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LadySnotAlot · 22/10/2007 19:54

WHAT??????

I haven't even started paying mine back yet. For god sake. Blood suckers!

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scorpio1 · 22/10/2007 19:55

noooooooooo........so unfair!

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naturalblonde · 22/10/2007 19:57

That's not good, you could almost get a cheaper loan if you went through a bank.

Incidentally, do you know what happens about paying it back if you were single when you took the loan out, but now live with someone who earns over the £15000 threshold? Does my DP have to pay it for me as he supports me as I am now a sahm?

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scorpio1 · 22/10/2007 19:57

no, its yours, your earnings over 15k.

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LadySnotAlot · 22/10/2007 20:02

Deffo yours not his. My DH has never been approached to pay mine back and he earns over £15k.

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Skyler · 22/10/2007 20:11

I have been deferring for 10 years as I have never earnt over the threshold (£25000 for me as I was one of the first to have to take one out) and my dh is now supporting me as a SAHM. He has to write a letter saying he is supporting me and that I have no income from him and it gets deferred again, but now the interest is so high that is quite a scary debt.

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Skyler · 22/10/2007 20:12

As you say it is like a 'real' loan from a bank .

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LadySnotAlot · 22/10/2007 20:13

I was only at Uni for a year so mine was (originally) about £4k. Not sure what it currently stands at as I've not had my statement through yet. I've not earned over the threshold yet though. Probably be about 100 before I do!

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NannyL · 22/10/2007 21:22

OMG

i havent had a statement for AGES... guessing that will be on mine too

still wont be paying it back as i am still gettting more than 4.8% on my savings so still making a profit from it

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LittleB · 23/10/2007 12:25

Yes, I was shocked too, I thought it was supposed to be at the same rate as inflation? I've been deferring mine for 10 years now too, work part time, but even full time I wouldn't earn over the 25k threshold, luckily mines only about £3k, but I do think its out of order for the to put it up so much, I thought the government said inflation was below 2%? Although my union says its over 3% (I work for a local authority and the union are threatening strike action as they're offereing less than 2.5% pay rise which they say is effectively a pay cut as its below inflation. I guess the student loans complany will use the highest one they can find! I don't know if I'll ever earn enought to pay mine back - thats what I expect anyway!

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hanaflower · 23/10/2007 12:27

This reply has been deleted

Message withdrawn at poster's request.

pooka · 23/10/2007 12:28

I had £10000 to pay when left University 11 years ago. Finally got it down to £1800 last month and decided was fed up having the money going out each month so paid it off. Glad I did now. I know could earn more on interest if the same money was in savings, but since now earn not much at all as am SAHM/freelancer, but don't want to defer, just wanted shot of it.

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katz · 23/10/2007 12:30

i hadn't spotted that, i got mine out in my second year of uni 1997 and only started paying it back 2 years ago although even now i don't need to, just want it gone.

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CarGirl · 23/10/2007 12:45

I fall into the original over £25k lot before having to repay it they are 12 & 13 years old now, I don't think I'm ever going to have to repay as my earnings will be too low - I think after 25 years the debt is written off?

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Skyler · 23/10/2007 12:49

I borrowed £3500-4000 I think and now owe £5000. Isn't that awful I don't even know how much I borrowed. I just know it was the maximum amouint from 1994-97. Unfortunately I needed mine to pay my rent so it isn't stashed anywhere earning interest. I thought I would just leave it until it expired as I don't ever think I will earn over the threshold the way it is going up, but that new rate of interest makes it seem real now. Scary.

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Skyler · 23/10/2007 12:51

I think the debt is written off at age 50??? I can't remember now. I know it was always a rumour it would be written off, but I have definately seen it written down, just can't remember the details now.

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Jennster · 23/10/2007 13:00

Gosh I paid mine off when it went from 1.3% to 3.1 % just like that. They did the same, very quietly increasing it. That was four years ago and was 96-99 loan. Had only defferred for one year, but it's not competitive any more is it?

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CarGirl · 23/10/2007 13:02

I looked into it some years ago and it does become written off I think either after 25 years or a certain age which ever is the latter. Figured I would just never work full time if my salary ever got that high! I took it out on principle but do feel bad about it - it ended up being a deposit on my first house.

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LittleB · 23/10/2007 13:14

Some of you are very lucky to have not needed to use yours, I needed mine for food and bills, my grant covered my rent, couldn't have managed without it, I had to work term time and holidays as it was. It'll be good if it is written off, I thought I'd read something like that too, mine were taken out in 95&96. I doubt I'll go FT until dd's older she's only 2 now, and FT in current job would be 20K so perhaps I'll manage to get away with never paying it back - my managers only on about 25k! Comes from working in the public sector in an environmental job!

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CarGirl · 23/10/2007 13:16

The reason why I didn't need mine is because I worked part time and did a year in industry also I think I only borrowed about £3k in 2 years, that's all you could???

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BrownSuga · 23/10/2007 13:18

i'm quite astounded that people who've done higher education don't earn more.

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pooka · 23/10/2007 13:55

I had 5 years of full-time degree. From 1992 - 1997. Each year the loan available was higher than the year before. Needed the loans to pay exorbitant rent. Was also on a full grant, but that didn't cover living expenses. Did work for 2 years of the degree.
When I began work, I automatically began paying them back as I earned above the threshold. It isn't a massive repayment (thing was only about £90 a month), but am pleased not to have it exiting my account now.

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NorthernLurker · 23/10/2007 13:55

ooooh - does it really get written off - I thought that was an urban myth

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bookwormmum · 23/10/2007 14:10

I don't think that I've had a statement since 1999! I'm not currently repaying my loan either - they may as well have given us all grants and be done with it.

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Fizzylemonade · 23/10/2007 14:50

I am sahm and plan to stay that way so am never paying mine back. Every year I defer and my DH has to provide a letter saying "no I do not give my wife an income of more than XXX" makes me feel like a kept woman [grin}

They apparently do write it off after 25 years, so I am 15 years in for my first one

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