Interest rates

[skyelet]

Just a quick question, but can SLC really be charging me £35 per month in interest ?

Im not even paying back this much as i earn 14,500PA, with the little bit of overtime i do, makes it just over 15,000....

Surely if i stay where I am i will simply be paying money to them for nothing, as my loan will never get cleared off....

And no, I cant afford to increase payments, got 1 2YO and 1 on the way

Im so upset as I didnt even finish uni

Only scraped past the 1st year 2nd time round

[enamae]

The SLC are currently charging interest of 4.8% pa interest on loans which means that £35 a month is how much you would pay on an outstanding loan of approx £8750.

Repayments are at a rate of 9% on any earnings over £15000 so to pay off just the interest you would need to earn approx £20000.

[pencil]

I have exactly the same amount of student loan debt and I can not envision earning £20,000 for something like ten years and I am already 35.

They are adding £35 a month to the debt out of thin air and I am on the dole, in rented accommodation with no chance of getting a mortgage or a car. Who are they kidding? I am starting to wonder if I should just let their fanciful addendums to the debt pile mount up to the point where it topples over and not bother to repay it back at all. I can take the p*ss too!

[MrShed]

Guys, what are you talking about? They are charging a very low interest rate(in fact, in real terms, 0 interest) - why can you possibly think that this is unfair?

And BTW - I am paying double the interest of the OP above on mine...

[pencil]

Originally Posted by MrShed

Guys, what are you talking about? They are charging a very low interest rate(in fact, in real terms, 0 interest)

I think you'll find it's more like 5%.

[MrShed]

Not in real terms. In real terms, the interest rate is zero, as it is kept inline with inflation.

5% for that size loan is a bloody good deal BTW.

[pencil]

Originally Posted by MrShed

Not in real terms. In real terms, the interest rate is zero, as it is kept inline with inflation.

No it's really 5%, really £35 a month of real money, out of thin air.

[MrShed]

So just to clarify. You think it is SLC's fault that you are on the dole, SLC's fault to add interest just to keep the debt at the same level(AND at a level you agreed to, by the way), and SLCs fault that you cannot get a mortgage?

SLC are only performing with the loan in exactly the fashion they offered, and you agreed to. That is, as a LOW COST loan percentage wise, that is kept in line with inflation.

With that kind of "pass the buck" attitude, I would suggest you look a little closer to home regarding your problems.

[MrShed]

Originally Posted by pencil

No it's really 5%, really £35 a month, out of thin air.

£35 "out of thin air"? No, £35 at a 5% interest rate.

I suggest you know what you are talking about before correcting.

In economic/financial terms, "real" terms means as adjusted for inflation.

[pencil]

Originally Posted by MrShed

So just to clarify. You think it is SLC's fault that you are on the dole, SLC's fault to add interest just to keep the debt at the same level(AND at a level you agreed to, by the way), and SLCs fault that you cannot get a mortgage?

SLC are only performing with the loan in exactly the fashion they offered, and you agreed to. That is, as a LOW COST loan percentage wise, that is kept in line with inflation.

When I agreed to the loan the interest rate was 1%, Or as you insist, "0%" really. If there is a depression and hyperinflation, is that student's fault or the government's?

With that kind of "pass the buck" attitude, I would suggest you look a little closer to home regarding your problems.

I would suggest the SLC look a bit closer to home regarding their's as well.

[MrShed]

When you agreed to the loan, the interest rate was VARIABLE in line with inflation.

Do you think that because of recession they should wipe out your debt?

Look - I'll say this as simply as I can. You had the enjoyment of the money. Why are you so against the SMALL interest payments(compared to the interest rates you would get anywhere else) for the very sizeable loan you had?

More to the point, you arent even paying anything at the moment!!!

The rate works out as zero %, because it only increases as prices increase. If they did not do this, there would still be 14grand debt in twenty years, when 14grand would be what 8grand is worth today. It is quite fair and reasonable for them to expect, and perform actions resulting in, the debt to hold its value.

[pencil]

As the government taxes this unemployed person here £35 a month I find it hard to take you seriously at all because of your continued insistence that the interest is zero really, and I have had to put you on ignore. There's one born every minute.

[MrShed]

Fine - no skin off my nose. Others with the ability to understand concepts, will know exactly what I am saying.

Your loss - you against the world, and I'm afraid you are wrong.