I'm done with debt!

Originally Posted by graemepaterson

I have never looked into it in any particular detail, I would hope she is paying off more than just the interest though Kerry only has £9k though I believe as her course was only 3 years.

I will look into it abit more perhaps.

I think she'll be ok. the interest is 4%, so...yea, you can work out the interest and see overall how much she is paying back of the loan

Matt

On 9k interest will be approx £432 this year at current interest rate, so you have to pay more than £36 a month to cover the interest. To pay £36 a month you have to be earning £19363 (you pay 9% of anything over £15k). So if she earns less than £19363 the loan total will increase this year.

It's mad!

It is better to pay the minimum payments all your life and just let the loan lapse when you're 65 though. Say if you intended to make a £50 per month overpayment, that's £600 per year. Over 30 years that's £18000 without interest, and you'd have paid back less than that. Save it, don't make overpayments.

Congratulations Matt- must feel great to be done with the exams.

I guess with the loan, you either- carry on being a student and amass more debt, get a job low paid enough to avoid paying the loan back, or get a stupidly well paid job (quite possibly in your field!) and repay it in no time at all!

[G]

Originally Posted by cartwrim

On 9k interest will be approx £432 this year at current interest rate, so you have to pay more than £36 a month to cover the interest. To pay £36 a month you have to be earning £19363 (you pay 9% of anything over £15k). So if she earns less than £19363 the loan total will increase this year.

She earns enough then for it not to be a problem so should be ok.

But thats rediculous for people earning less than £20k, they are just paying for nothing and just having their loan increasing beggar belief really, but much like wider uk problems the govemerment are unlikely to use their brains and come up with a solution.

I dunno, i'd rather pay the debt off. What if the rules change, and you have to pay it off even after you retire?

I'd like to make in-roads into paying it off now, then have a bit more money when I (maybe) have a family

Oh, and im sure i'll accumulate debt again, but as a morgage. thats sort of a given....ok, im done with getting into more debt, apart from the interest accumulated, and apart form having a morgage

Apart form that, im done with owing people money

wait, my dad lent me some money the other week..

Ah carp, its a vicous cycle!!!

Matt

The Mrs rang up and the SLC have confirmed it gets written off when you retire (or at 65, not sure what would happen if you retired at 50 for instance). Without getting all the gumph out (doubt I've still got it to be honest but apparently its on their website) I can't imagine they can just 'change the rules' on it - you sign up to a contract when you take out the loan and I would have thought the only thing that can change is the interest rate, not the general payment terms.

Having said that, I never envisaged the interest / inflation rate would rocket to five times the rate it was when I took it out!

Originally Posted by cartwrim

The Mrs rang up and the SLC have confirmed it gets written off when you retire (or at 65, not sure what would happen if you retired at 50 for instance). Without getting all the gumph out (doubt I've still got it to be honest but apparently its on their website) I can't imagine they can just 'change the rules' on it - you sign up to a contract when you take out the loan and I would have thought the only thing that can change is the interest rate, not the general payment terms.

Having said that, I never envisaged the interest / inflation rate would rocket to five times the rate it was when I took it out!

yea! It seemed to shoot up form about 2% to 4% overnight. I think thats what worries me aswell.

Matt

congrats, i know the feeling.

Good luck finding a PhD, if youre after an electrochemistry/surface science PhD i know of one!

Originally Posted by jamesrichardson

congrats, i know the feeling.

Good luck finding a PhD, if youre after an electrochemistry/surface science PhD i know of one!

well hello...what uni, and is it funded?!?!

Matt

Southampton, and yes it will be funded. i dint think its advertised yet as we've only got confirmation of the grant acceptance this week. i will try and get some more info and pm you