Student Loans.

[Finnegan]

How exactly do Student Loans work? I sort of fooking regret not reading more of the small print about now! Ahaha.

Apparently I've been paying £40 a month interest over the last six or so months. What the deuce? Surely that's more than I'll actually be paying back once I start paying it back! So much for the gentle loan.

[The People's Hero]

How exactly do Student Loans work? I sort of fooking regret not reading more of the small print about now! Ahaha.

Apparently I've been paying £40 a month interest over the last six or so months. What the deuce? Surely that's more than I'll actually be paying back once I start paying it back! So much for the gentle loan.

You and me both mate.

It's basically sh it.

[Milky]

I'm paying nearly £50 a month right now. It's linked to inflation though so it's dropping.

They deduct 9% of your income in excess of £1250 per month. So if you earn £1500 a month (18k a year), that's 9% of £250 so £22 per month.

Without voluntary repayments the total just keeps on growing.

[Finnegan]

I'm paying nearly £50 a month right now. It's linked to inflation though so it's dropping.

They deduct 9% of your income in excess of £1250 per month. So if you earn £1500 a month (18k a year), that's 9% of £250 so £22 per month.

Without voluntary repayments the total just keeps on growing.

Aaaah right. So they're basically charging me a lot because I've not been in touch with them? Haha.

That's probably fair. I'm currently probably earning about £10k at most, so I presume I won't be actually paying back £44 a month once I let them know I'll happily start giving them my dollar dollar?

As an aside, has anyone ever moved abroad with a student loan? What happens?

[The People's Hero]

Aaaah right. So they're basically charging me a lot because I've not been in touch with them? Haha.

That's probably fair. I'm currently probably earning about £10k at most, so I presume I won't be actually paying back £44 a month once I let them know I'll happily start giving them my dollar dollar?

As an aside, has anyone ever moved abroad with a student loan? What happens?

I pay about £40 but I'm having just a bit more than that added to it each month.

I really should just pay some off.

[Finnegan]

What's your total?

I'm on £11,400 and I only went for two years.

[Milky]

Aaaah right. So they're basically charging me a lot because I've not been in touch with them? Haha.

That's probably fair. I'm currently probably earning about £10k at most, so I presume I won't be actually paying back £44 a month once I let them know I'll happily start giving them my dollar dollar?

As an aside, has anyone ever moved abroad with a student loan? What happens?

I'm a bit confused at whay you've said. You'll keep paying the £40 odd interest. That interest is a percentage of the current total you owe. The interest will be greater than the 9% repayments at current rates, so without voluntarily knocking some of the total down, it'll keep on rising due to those interest payments being higher than the income deduction.

[The People's Hero]

What's your total?

I'm on £11,400 and I only went for two years.

Well I borrowed quite a lot and did the full 3 years....

[Milky]

What's your total?

I'm on £11,400 and I only went for two years.

Harsh. I'm up to about £11,500 for three years.

[Finnegan]

I'm a bit confused at whay you've said. You'll keep paying the £40 odd interest. That interest is a percentage of the current total you owe. The interest will be greater than the 9% repayments at current rates, so without voluntarily knocking some of the total down, it'll keep on rising due to those interest payments being higher than the income deduction.

So if I'm voluntarily paying X amount back monthly, X has to be greater than £44 or I'm not going to be going anywhere?

No matter how much I'm earning?

[The People's Hero]

So if I'm voluntarily paying X amount back monthly, X has to be greater than £44 or I'm not going to be going anywhere?

No matter how much I'm earning?

Yeah, if you pay back the exact amount of the interest, you're running just to stand still.

If you pay back nothing, which was me for ages due to a bit of a cock up.... you end up going backwards quite quickly.

[Finnegan]

Toss.

[Milky]

So if I'm voluntarily paying X amount back monthly, X has to be greater than £44 or I'm not going to be going anywhere?

No matter how much I'm earning?

Voluntary + 9% of income over £1250 per month > Interest = Total comes down.

Interest is linked to inflation, so with the deflation, interest will come down and you might not need to make as much voluntary payment to get things moving.

Without voluntary payments though you're pretty much going nowhere unless you earn a really decent wage.

[Finnegan]

So. Alright. You confused me, I'm an idiot fiscally - I do words not numbers.

Basically I'm fucked unless I earn more? I thought that defeated the point of a student loan?

[Milky]

I've got some extra cash locked away in Nationwide. I'm thinking of taking money out of that to keep paying bits off every now and then. Or at least put a halt to the climbing total.

[Milky]

So. Alright. You confused me, I'm an idiot fiscally - I do words not numbers.

Basically I'm fucked unless I earn more? I thought that defeated the point of a student loan?

Yep, you'll be swimming against the tide. Just paying off the interest pretty much.

[Milky]

The interest is linked to inflation, but of course, wages don't rise in line with inflation!!

[Finnegan]

Yep, you'll be swimming against the tide. Just paying off the interest pretty much.

I hate to be one of those dickheads that didn't look ahead - but they really don't clue you much in.

I guess the bonus of the Student Loan is that I'm in no immediate rush to pay it back? So even though there's mounting interest, I've basically got my whole life to pay it?

I'm used to panicking about money, lately. The bank have been demanding everything I owe back and I've been up shit creek for a while, so it was quite alarming to have my yearly report from the Student Loans company to see they've shoved on about another five hundred quid since I last checked.

Should I basically just not be panicking?

[Milky]

I hate to be one of those dickheads that didn't look ahead - but they really don't clue you much in.

I guess the bonus of the Student Loan is that I'm in no immediate rush to pay it back? So even though there's mounting interest, I've basically got my whole life to pay it?

I'm used to panicking about money, lately. The bank have been demanding everything I owe back and I've been up shit creek for a while, so it was quite alarming to have my yearly report from the Student Loans company to see they've shoved on about another five hundred quid since I last checked.

Should I basically just not be panicking?

I've only just become clued up about it. The site of nearly £50 a month interest for a tight wad like me didn't go down too well! I think we've got our whole life to pay it. It'll be hanging round our necks for a long time, but i guess that doesn't matter too much if we're in no rush to give it back.

You could just leave it at the mandatory 9% over £1250 a month, and say sod the total.

[The People's Hero]

I hate to be one of those dickheads that didn't look ahead - but they really don't clue you much in.

I guess the bonus of the Student Loan is that I'm in no immediate rush to pay it back? So even though there's mounting interest, I've basically got my whole life to pay it?

I'm used to panicking about money, lately. The bank have been demanding everything I owe back and I've been up shit creek for a while, so it was quite alarming to have my yearly report from the Student Loans company to see they've shoved on about another five hundred quid since I last checked.

Should I basically just not be panicking?

I just don't think about it. I figure that one day I'll be earning decent money and it will take care of itself.

But now you've got me thinking about it!

[Milky]

I just don't think about it. I figure that one day I'll be earning decent money and it will take care of itself.

But now you've got me thinking about it!

You're 25 now aren't you? So you've been getting deductions from your income for some time now, and what's the total like now? Has it actually moved down in that time? Just think, without the money taken out of your income, it could be up at around what? 20K now? Painful.

[The People's Hero]

You're 25 now aren't you? So you've been getting deductions from your income for some time now, and what's the total like now? Has it actually moved down in that time? Just think, without the money taken out of your income, it could be up at around what? 20K now? Painful.

Mine was cocked up thanks to myself, my employer and the inland revenue... so for a while I made no contributions.

I got stuck at the end of the year though.. and now pay around about the same as the interest. So really, I'm getting nowhere.

[Lillehamring]

Aaaah right. So they're basically charging me a lot because I've not been in touch with them? Haha.

That's probably fair. I'm currently probably earning about £10k at most, so I presume I won't be actually paying back £44 a month once I let them know I'll happily start giving them my dollar dollar?

As an aside, has anyone ever moved abroad with a student loan? What happens?

exactly the same...

[James.]

My last payment is this month!

As for going abroad this could be one of those university myths that floats around but I heard if you leave the country for 5 years or more your loan gets written off...

[Finnegan]

exactly the same...

But how do I pay? Like, contact them with the bank details I have from my new country and they take it internationally?

Or, like, transfer money home for it to be paid from a bank account in the UK?

As for going abroad this could be one of those university myths that floats around but I heard if you leave the country for 5 years or more your loan gets written off...

I'm pretty sure I read on Yahoo answers () that that's a myth.