Loughborough University

Loughborough

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Student Loans...

i got a letter from the Student Loan Company, and on the back it had some information....

IMPORTANT NOTES

Interest is charged daily and is currently equivalent to an APR of 3.2%.

does that mean 3.2% every day on what they're giving me?????

and i believe its compound interest - so is that 3.2% today, and then 3.2% of what the total was today, tomorrow etc...

Reply 1

andyj72

wow, i dont think i saw that if that is the case we will be so broke afterwardsa nd in serious debt cos the interest will build up. ill have to check

Loughborough University

Loughborough

Reply 2

neal.

apr is an annual calculation, for daily it would be 3.2/365

so actually it wont work very much at all.

Reply 3

iklemarc

yup isnt APR annual percentage rate.

Reply 4

Lion_uk

so, are we being robbed or not?

Reply 5

Steely

Lion_uk

so, are we being robbed or not?

Not really...worry about these things when you come out of uni...thats my motto

:wink:

Reply 6

tim05

okay matey..

3.2 APR is about the inflation rate lol (give or take a little)

you are far from being robbed lol...

bear in mind best loan deal ull get as a personal loan is about 12% APR :biggrin:

its like free loan basically but the interest on the loan is worked out on an each day basis - ie. when u have 2k loaned out it costs u more on a per day basis than when u had 1k out...

etc...

basically - no.

Reply 7

ravingdevil

wow...I'm guna be doing economics and i have no idea what u ppl are on about! says quite a lot really eh?!

Reply 8

Lion_uk

ravingdevil

wow...I'm guna be doing economics and i have no idea what u ppl are on about! says quite a lot really eh?!

haha! snap

Reply 9

theisticandy

tim05

okay matey..

3.2 APR is about the inflation rate lol (give or take a little)

you are far from being robbed lol...

bear in mind best loan deal ull get as a personal loan is about 12% APR :biggrin:

Inflation is only 2.4% atm, we're being shafted :p:

!

P.S. I'm doing economics too, nice to meet others who will be on my course!

Reply 10

joshdajoker

You can get higher interest rates when saving. You are NOT being shafted at all!

Reply 11

Woodrift

Doesn't matter really, we're students....worry bout it post uni, or post freshers week at least...

Reply 12

theisticandy

joshdajoker

You can get higher interest rates when saving. You are NOT being shafted at all!

lol I know :P, on one of the Loughborough open days thats what they actually recommended to do with our money (take out the student loan even if you don't need one and stick it in a high interest account for the 3 years, then you've made profit :P)

Reply 13

justaddh2ohere

theisticandy

i guess i wasnt listening to that bit or to anythin at all.. i should have taken one out this year and did that! :hmpf:

Reply 14

~*~Hannah~*~

loan rates at the moment are actually around 7% so its not that much difference... i was really confused by that too- i thought the whole point was u dont pay interest or start paying it back until after ur earning 15k or whatever it is....? are we paying interest on it the whole time then? cos my parents said it sounded like it meant the 3.2% started after 'your' first payment. ie after we make our first payment back to them once we've started earning the 15k...? but the rest of the letter was all about their first payment to us so im well confused!

Reply 15

theisticandy

~*~Hannah~*~

in real terms you don't pay interest at all, the interest rate is supposed to be at the same (or similar level to inflation) so that the amount you pay back will be equal in real terms to the amount you borrowed. You pay this interest all the time until the loan is paid back and the interest rate doesn't change unless inflation changes

P.S. If you're wondering why the interest they charge you is higher than the government stated measure, from what I've heard that is becasue government stated inflation uses the CPI measure, but loan interest is worked out based on the RPIX measure of inflation (which is higher)

Sorry if none of that made any sense :P, I'm in a hurry to type it before my laptop battery runs out again!