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Original poster

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 .

OP posts:
LadySnotAlot · 22/10/2007 19:54

WHAT??????

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

scorpio1 · 22/10/2007 19:55

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

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?

scorpio1 · 22/10/2007 19:57

no, its yours, your earnings over 15k.

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.

Original poster
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.

OP posts:
Original poster
Skyler · 22/10/2007 20:12

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

OP posts:
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!

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

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!

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.

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.

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?

Original poster
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.

OP posts:
Original poster
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.

OP posts:
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?

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.

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!

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???

BrownSuga · 23/10/2007 13:18

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

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.

NorthernLurker · 23/10/2007 13:55

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

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.

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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