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interest on tuition and maintenance loan

How does the interests work? I noticed interest rate is %6.3. Is that same for both tuition and maintenance loan? Say after I finish degree I wont get minimum £25000. Do they still charge interest on the loan or is interest only charged if you are earning over £25000? I think I might get a bank loan instead sfe loan lol as interests are a lot less as with sfe your loan will just get higher and higher if thats how it works.
Original post by Kiraz
How does the interests work? I noticed interest rate is %6.3. Is that same for both tuition and maintenance loan? Say after I finish degree I wont get minimum £25000. Do they still charge interest on the loan or is interest only charged if you are earning over £25000? I think I might get a bank loan instead sfe loan lol as interests are a lot less as with sfe your loan will just get higher and higher if thats how it works.

Unlike with a bank loan, student loan won't ever demand you pay the full amount in one go, also a small amount is taken from your paycheck each month when you earn over the threshold - a bank won't care how much you are earning they will want the same payment each month
An SFE loan will be written after 30(?) years and isn't considered as 'bad debt' when applying for a mortgage or other credit, a large bank loan will!
Interest is added whilst you're studying, so essentially the debt amount will still increase from the amount you borrowed. However this is paid back incrementally, at 9% of what you're earning over 25k.
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Kiraz
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Original post by MidgetFever
Interest is added whilst you're studying, so essentially the debt amount will still increase from the amount you borrowed. However this is paid back incrementally, at 9% of what you're earning over 25k.


So first year your interest will be £582 just on tuition fees. Then when you start paying say earn £26000 you pay back £90. You will never pay it back. Take £90 out of £582. So it will add up to your loan every year £492. It doesn't even make sense. So I better take the loan then. Thank you.

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