Interest payable on student loans???! Watch

snu
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#21
Report 11 years ago
#21
(Original post by kirstinx)
Once graduated and applying for mortgages etc. are you going to have a bad credit score/rating because of the "student debt"?
No. You'll only end up with a bad credit rating if you are unable to manage your debt.
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~Kirsty~
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#22
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#22
My brother did get refused credit cards once he graduated... so i think it does count in some ways (he has never had a overdraft or anything like that!)

I don't know if that still happens though.
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Juno
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#23
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#23
(Original post by ~Kirsty~)
My brother did get refused credit cards once he graduated... so i think it does count in some ways (he has never had a overdraft or anything like that!)

I don't know if that still happens though.
That'll be because he didn't have a credit rating. That can be as bad as having a bad credit rating.

Your student loan can affect how much mortgage you can get though.
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~Kirsty~
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#24
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#24
Thats silly lol! Thats why i applied for a credit card while i'm at uni, even though i hardly use it!
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snu
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#25
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#25
(Original post by Juno)
Your student loan can affect how much mortgage you can get though.
Only in that the repayments will affect your monthly incomings, surely?
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~Kirsty~
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#26
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#26
Well i couldn't understand half of what was written in the text speak post either... Text speak is against TSR rules anyway.
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bluenoxid
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#27
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#27
(Original post by snu)
Pass me the crack pipe.
Pass it to me too.

FFS

Right, student loans are charged at the rate of inflation. This is taken from the RPI (thats a measure of inflation) of the previous March for all your debts for the next year. Every September the interest rate for all Student Loan debts changes. This means that everyone from new starter to graduate who owes money is charged 4.8% on any outstanding debt they have over the year. The fee they charge you is worked out on a daily basis by using the simple figure of 4.8 (which is the rate of inflation) divided by 365/6 (the number of days in the year). They charge the fee to you the next September (correct me if I am wrong)

The interest rate is variable. This means that it changes every year. You maybe paying 4.8% this year, but next year, it could be something lower.

Dont be put off borrowing this money due to the relatively high interest rate. It will average itself out over the period of time you borrow it to hopefully a lower amount.

Commercial loans cost much more than this per annum.

DO YOU UNDERSTAND??? :confused:
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snu
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#28
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#28
Actually, interest is debited from your balance on a monthly basis at the SLC (see your annual statement, if you have one).

There is still an argument for avoiding all debt where possible. The repayments will take a chunk out of your earnings once you graduate. If you suck at managing money and you're likely to spend more if you have your loan to spend, you might want to avoid it. Otherwise, it's still a better option than spending your own money.
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bluenoxid
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#29
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Dont have one, only completed first year.
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snu
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#30
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Ah, ok. You should get one in the next few weeks.
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~Kirsty~
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#31
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#31
My yearly statement doesn't come till almost december... its shocking really!
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jennyng2000
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#32
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#32
aye and innit ARENT text speak!!!!!!!!!!!!!!!!!

no one makes money off our loans, we get them at cost price and we pay back what they are worth. if you have to have a loan its the best loan you could ever ask for!
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donuticus
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#33
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#33
Do what everyone else does. Work self employed pay yourself wages of less than 15,000pa and claim back the maximum untaxable benefits, I.e Travel, laundry etc. Otherwise do like my brothers and sisters did and emigrate to Australia. My brother got a phone call from SLC in Glsgow asking when he was gonna pay his student loan. He told them where he was and asked them if they liked there call centre job. He hung up the phone and has never heard from them again. hahaha
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