Student Loan Repayment-time issue ?
 

A student leaves university and enters paid employment, all legit, income tax, paye, superannuation etc, all above board, all paid/declared, address OK etc.
Leaving aside the moral issue....
If the 'Student Loan Company' (think it's them ? ) then fail to contact the student for repayment of loan from earnings, how long has to elapse before the original student loan is declared void ( or whatever) and no repayment can be reclaimed because of the passage of time ?

Cheers

JBL

To be honest i think the loan is still active no matter how long, but i have heard that the student loan company are in a real shambles and don't really know whats going on, so if you haven't been contacted by them when you start earning then chances are you wont. I could be wrong though.

I've been earning two years now without them taking anything, they send me a statement like once a year .. but have never requested anything from me .. so I dunno

Normal debt is "Statute barred" after 6 years of zero contact. Government debt is exempy, however, they lose powers of using any strong arm tactics after the 6 year period AFAIK.

Not sure where student loan fits into it all though.

Thank you all

JBL

Pimmo it depends on how much you earn, i only get the statement come through because they have already taken the money out of my wage before i get it, so id check your pay slips, they only take out a small amount each month anyway. Thank god i have only got a years worth of loan to pay back...

As far as I know its 15k+ to pay back ??

I;ve earned quite a bit more than that for the last 2 years ... I'm not complaining though :lol1:

My Neice finished Uni a couple of years ago and was complaining the other week about having to pay off her student loan. I thought it was a trivial ammount per month out of the £35K+ shes earning.

Student loans are a chuffin scam and you're being ripped off. If you're not paying it off then the interest is being heaped on and you'll end up paying back alot more than you borrowed.

It's the taxman who collects the money not the SLC and he takes approx 3% of your salary each month and earns interest on your money as they will take all 12 installments before giving the SLC 1 annual payment, the SLC charge you interest on the full amount for a full year and as the interest on the loan is being calculated daily you're paying interest on your interest over the year.

As the current interest rate is 4.8%, and given the way the repayments are structured it's one of the most expensive loans you can get.

What the **** are you on about? This is the biggest load of **** I have ever read :lol: .

sounds like the only way out is to pay or die.

They've just decided it's time to start taking money off my sister for her student loan... it's only 6 years since she graduated. :rolleyes:

She tried contacting them years ago to start payments, but after several attempts that got nowhere, she gave up trying and waited for them to contact her.

I'll try and find the episode of watchdog on youtube for those who find maths difficult.

Inflation is the rate at which prices rise. Therefore if inflation is 4%, this means things costing £100 this year will cost £104 next year.

There are two main measures of inflation, the CPI, which is a complex official measure standardised across Europe, and the Retail Price Index (RPI), which measures the value of a large sample of typical goods. The student loan rate is based upon the RPI.

Imagine you borrow £100, and the interest rate you pay is set at this 4% rate of inflation. That means in a year's time you will owe £104. Yet due to inflation, a basket of shopping costing £100 this year will cost £104 next year. Therefore you were lent a 'basket of shopping's worth' of money and still owe a 'basket of shopping's worth' of money, thus your actual spending power hasn't been diminished by the loan and there's no 'real' cost.

Compare this to a higher than inflation rate loan, say 10%. Here you'd owe a ‘basket of shopping's worth' plus £6. Hence to repay that money you'd need to forgo £6 of other spending.

Based on a pure financial analysis, a loan this cheap shouldn't really be paid off more quickly than is necessary.

Taken from MSE

Seen as you are the maths wizard you claim to be, could you just do the math for us now, in simple form, instead of finding that program, thanks.