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Reapplying for Second Year

I logged in to Student finance and started to reapply for my second year but as it was taking me through the pages it says that Student Finance England will charge me interest on my loan as soon as they make the first payment? What does this mean? I wasn't charged on my first year loans (at least I don't think), has there been a change in law?
Original post by EllieBowker13
I logged in to Student finance and started to reapply for my second year but as it was taking me through the pages it says that Student Finance England will charge me interest on my loan as soon as they make the first payment? What does this mean? I wasn't charged on my first year loans (at least I don't think), has there been a change in law?


You were charged interest on your first year loans - there was some publicity last year highlighting that SFE/SLC didn't make the interest charges clear enough which is why they've made it clearer when you apply.

The way repayments and interest work you're unlikely to repay your loans (never mind the interest) unless you have a salary above £30k immediately after graduating and get a pay rise each year....so the interest doesn't actually make any real difference to the amount you repay overall unless you're likely to be in that high income group. It's more like a graduate tax that you pay for a set number of years after your degree.

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