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Repayment

Hi,
I am going to apply for Student Loan, but I found a few unclear things in terms and conditions.
1. The regulations may change from time to time and this means the terms of your loan may also change.
..does it mean they can change the things like the threshold of payments, and cancellation of loan (30 years)

I don't know what to do. I'm afraid they may change many things during the years. Is it better to borrow the least money and repay it as fast as its possible.

Reply 1

Saoirse:3

Original post by sandrea

They can change what they like. It's basically a get-out clause for a future Government if they decide we aren't paying back enough as it is. They could do what you've suggested, or change the interest rate etc. However, you should still borrow as much as you need (in most cases: as much as you can). The effect on your degree of working to earn enough to live on because you didn't take the loan will have far greater consequences than this kind of thing, and it's so unpredictable there's little point worrying about it. There's so many things wrong with the system that even if you somehow alleviate this, there would still be a thousand more ways for them to **** you over.

Reply 2

balotelli12

As above BUT so far every change (at least 3 so far) have not been made retrospective.

Reply 3

Saoirse:3

Original post by balotelli12

As above BUT so far every change (at least 3 so far) have not been made retrospective.

Are you referring to the increases in tuition fees? Before 2010, such retrospective changes were far more limited. For example, the repayment threshold could only move with inflation, same with the interest rate. The act which introduced £9,000 fees also gave the Government and all future Governments far more ability to change the terms retrospectively of loans taken out since 2012. The older students will be okay, but those who started last year, or will start this year and all future years, could potentially have the rug taken from under them.

Reply 4

balotelli12

No, i have 3 kids each of whom had different tuition loans amounts and repayment structures. One paid about £1500 tuition, the second £3K and the third £9K. Each time it was changed it didn't change for students in the system already. Similarly repayment thresholds were £15K for 2 of them and £21K for the third.
I'd like to see what evidence you can produce that the last act changed anything. Governments have always been able to renege on agreements, as the NZ govt has on interest rates. I merely pointed out that so far changes have not been retrospective. You alo quote the myth that interest rates moved with inflation. They didn't. In 2010 they were only negative for pre 1998 students when they should have been negative for all students but the govt moved the goalposts for post 1998 students.

Reply 5

SilverstarDJ

A student loan is still has the lowest interest compared to a bank loan / credit card debt, and as others have said, if you work too many hours to make up the shortfall, this will impact your degree, which might impact your entire career negatively. Most students take out the maximum possible. You can repay any time in future without penalty, and it may make more sense to repay more once you've got a full time, hopefully graduate job following university, if this is what you wish to do.

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