Student Loans & Deflation

[Mattt]

Got another statement through yesterday, reminded me that the interest rate is set by one of the retail indicies, seeing as we could be facing deflation - is there anything that says the interest rate can't be negative on the loan?

[brogenville]

Does anyone read those things?

[Olf]

Just do an IVA - don;t worry - we'll pick up the bill

[fido]

Mattt said:

by one of the retail indicies

RPI - in which case you might get a rebate if it's negative on the next reset.

[scotal]

anonymous said:

[redacted]

Trouble is Tonks the SLC is so abysmally run that there is a possiblity the documentation will say just that, or at least not have the relative clause that makes negative interest impossible.

[blindswelledrat]

I reckon Tonker was a lawyer at birth.

[Mattt]

anonymous said:

[redacted]

That was my thinking, and seeing that the agreement was signed and filed (somewhere) many years ago - I don't know what it says.

[fido]

scotal said:

Trouble is Tonks the SLC is so abysmally run that there is a possiblity the documentation will say just that, or at least not have the relative clause that makes negative interest impossible.

I don't reckon it would be 'negative interest' - they will just reduce your loan balance (and you won't pay interest that year). Heck wtf do i know, it's just my by understanding of SLC and they are a simulation of real prices.

[Chris71]

Olf said:

Just do an IVA - don;t worry - we'll pick up the bill

What's an IVA?

[scotal]

anonymous said:

[redacted]

You hope.

[deckster]

blindswelledrat said:

I reckon Tonker was a lawyer at birth.

I'm terribly sorry Mrs T, but it's...a lawyer. Is there anything I can do for you at this difficult time?

[scotal]

anonymous said:

[redacted]

Jesus wept......... a lawyer and an accountant...... if you're not being told its illegal by one, you're being told its not tax efficient by the other.

[Bill Carr]

anonymous said:

[redacted]

Note kids - always take the donut.

[bobthemonkey]

coyft said:

Chris71 said:

Olf said:

Just do an IVA - don;t worry - we'll pick up the bill

What's an IVA?

An IVA is an agreement you enter into with your creditors. They agree so much in the £ and you agree a term to repay the reduced amount. Unfortunately student loans aren't allowed to be included in an IVA, the same as bankruptcy a student loan is with you for life.

You could pay off your student loan on a credit card, then do the IVA in respect of the CC debt. Probably challengable under some provision of the Insolvency Act, but could be worth a shot.

[amglover]

brogenville said:

Does anyone read those things?

Nope

[ninja-lewis]

anonymous said:

[redacted]

[Mattt]

I had loans under the old scheme & new.

Well, I've searched the PDF for all sections relating to interest, and it tracks the RPI, with no further clarification of limits.

Edited by Mattt on Wednesday 26th November 13:17