Student loan interest rates

[youngsyr]

Just thought I'd point out that those with loans from the student loan company (including those who took them out with the government and then had their loans sold on) will be paying 3.8% on their loans until August 2009, whilst the Bank of England Base rate is currently at 2% and could well be lower in the new year.

Nice to see people profiting out of us financing our education.

Edited by youngsyr on Thursday 4th December 16:54

[johnfm]

spend less on fancy dress pub crawls, fresher's week booze ups, taxi's to and from nightclubs and new cars on finance.

When students do that, I'll give a toss.

[Maxf]

johnfm said:

spend less on fancy dress pub crawls, fresher's week booze ups, taxi's to and from nightclubs and new cars on finance.

When students do that, I'll give a toss.

Yeah, less fun more gruel suppers!

Some people use their student loans to pay for genuine expenses. (I didn't, mine went into the womanising fund - and I'd do it all again )

[mr_tony]

And I think the point is that the base rate has sod all to do with this. Try going to a high street bank and getting a loan for 3% and watch them laugh you out the door.

Students do (and should) get a preferential rate. You clearly have no grasp of basic maths, economics or politics, so I'd figure you're doing psychology

[shirt]

come on its only 4 months. when i left my interest rate was 1.3%, then upto 3.1, now 3.9.

what is more annoying is the fact the revenue take money from my wage each month but only forward it to the SLC each april.

[Lois]

I used mine to buy my car and therefore deserve to only pay 2%

[Legend83]

shirt said:

come on its only 4 months. when i left my interest rate was 1.3%, then upto 3.1, now 3.9.

what is more annoying is the fact the revenue take money from my wage each month but only forward it to the SLC each april.

That pisses me off.

[Hub]

It is unfortunately based on inflation - so it was 4.2 percent or thereabouts this year. Should come down over time though, but with a delayed reaction!

[Geronimo]

But I bet my left bk that they drop my savings % though.

[youngsyr]

mr_tony said:

And I think the point is that the base rate has sod all to do with this. Try going to a high street bank and getting a loan for 3% and watch them laugh you out the door.

Students do (and should) get a preferential rate. You clearly have no grasp of basic maths, economics or politics, so I'd figure you're doing psychology

The point is though that I didn't go to a high street bank for my loans, I went to the government, who then sold my loans on.

6 years later, I find myself paying interest on these loans at at nearly (and in the near future possibly more than) double the Bank of England base rate.

To me that is unacceptable.

And you seem to be able to tell a lot from one post, did you study astromancy or tasseography per chance?

Also, with your profound understanding of basic maths, economics and politics, you'll already know that these loans are underwritten by the government, so they are in no way equivalent to walking into a high street bank and asking for a loan.

Edited by youngsyr on Thursday 4th December 17:12

[BigBen]

youngsyr said:

Nice to see people profiting out of us financing our education.

Edited by youngsyr on Thursday 4th December 16:54

I agree. Glad to see you take a pragmatic approach to this and not get worked up.

[sleep envy]

pay the loan off early rather than bleating about it

[youngsyr]

Hub said:

It is unfortunately based on inflation - so it was 4.2 percent or thereabouts this year. Should come down over time though, but with a delayed reaction!

Delayed reaction? They change the rates once per year!

[trooperiziz]

youngsyr said:

Hub said:

It is unfortunately based on inflation - so it was 4.2 percent or thereabouts this year. Should come down over time though, but with a delayed reaction!

Delayed reaction? They change the rates once per year!

Yup, sounds pretty delayed to me.

[youngsyr]

sleep envy said:

pay the loan off early rather than bleating about it

I've already got the cash saved in an ISA with the government-owned NSA.

The problem is that the rate they offer is now 2.34% (and falling), which our talented friend above will no doubt be quick to point out is now 1.46% below what I'm being charged on a loan I took out with the same government to finance my studies.

So, I either pay off my student loan and have no savings should the worst happen, or pay for the priviledge of being able to eat should I be fired.

Edited by youngsyr on Thursday 4th December 17:19

[tubbystu]

youngsyr said:

Hub said:

It is unfortunately based on inflation - so it was 4.2 percent or thereabouts this year. Should come down over time though, but with a delayed reaction!

Delayed reaction? They change the rates once per year!

And if BoE rates had gone up would you be hollering for a rate rise with the same energy level ?









No, I thought not.

[fido]

youngsyr said:

Also, with your profound understanding of basic maths, economics and politics, you'll already know that these loans are underwritten by the government, so they are in no way equivalent to walking into a high street bank and asking for a loan.

you are borrowing at the rate of inflation (RPI), which was set out in the agreement you signed - i assume you bothered to read it before putting pen to paper. i think most working people on here would love to borrow at RPI (even when it hit the dizzy heights of 5% or thereabouts). the interest rate is reset once a year, some time in september - is that so unreasonable. jezuz, no wonder this country is f8d.

[Legend83]

youngsyr said:

sleep envy said:

pay the loan off early rather than bleating about it

I've already got the cash saved in an ISA with the government-owned NSA.

The problem is that the rate they offer is now 2.34% (and falling), which our talented friend above will no doubt be quick to point out is now 1.46% below what I'm being charged on a loan I took out with the government to finance my studies.

So, I either pay off my student loan and have no savings should the worst happen, or pay for the priviledge of being able to eat should I be fired.

Get a better ISA!

Sleepy is right. Unless you can get your savings doing more than the interest cost of the loan (which historically has been easy) pay it off.

[youngsyr]

tubbystu said:

youngsyr said:

Hub said:

It is unfortunately based on inflation - so it was 4.2 percent or thereabouts this year. Should come down over time though, but with a delayed reaction!

Delayed reaction? They change the rates once per year!

And if BoE rates had gone up would you be hollering for a rate rise with the same energy level ?









No, I thought not.

It's not my job to look after the SLC's interests, but they seem to do that well enough themselves.

If you ask me the rates should be at a discount to the BoE rates, as the loans are underwritten by the government.

If the loan holders don't pay, the government does. Where's the risk to match the SLC's return there?

[falcemob]

fido said:

youngsyr said:

Also, with your profound understanding of basic maths, economics and politics, you'll already know that these loans are underwritten by the government, so they are in no way equivalent to walking into a high street bank and asking for a loan.

you are borrowing at the rate of inflation (RPI), which was set out in the agreement you signed - i assume you bothered to read it before putting pen to paper. i think most working people on here would love to borrow at RPI (even when it hit the dizzy heights of 5% or thereabouts). the interest rate is reset once a year, some time in september - is that so unreasonable. jezuz, no wonder this country is f8d.

Very unreasonable, it should be a free loan, at least until my daughter's is paid off.