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Student loan repayment calculation

I think my student loan repayments have been fudged up. I'm on Plan 2, so the interest rate on my loan is RPI+(0 to 3% depending on salary).

Please take a look at this:

Capture.PNG

Assuming the interest rates are calculated correctly..

Interest 3.48% results in £53.59

How??

3.48% of what?

I've tried calling SLC for some clarification and they have said were not financial advisers, go speak to one. I think my question is pretty simple but if anyone here has gone through their repayments thoroughly and understands, please shed some light!

Thanks.
(edited 3 years ago)
Reply 1
Avatar for IWMTom
IWMTom
20
Original post by MMM2020
I think my student loan repayments have been fudged up. I'm on Plan 2, so the interest rate on my loan is RPI+(0 to 3% depending on salary).

Please take a look at this:

Capture.PNG

Assuming the interest rates are calculated correctly..

Interest 3.48% results in £53.59

How??

3.48% of what?

I've tried calling SLC for some clarification and they have said were not financial advisers, go speak to one. I think my question is pretty simple but if anyone here has gone through their repayments thoroughly and understands, please shed some light!

Thanks.

The interest rate is the yearly rate, interest is calculated daily - compounded.

The only figure that doesn't make sense on there is the £53.59, but the difference is so negligible I wouldn't bother caring about it.
Reply 2
Avatar for MMM2020
MMM2020
OP
2
Original post by IWMTom
The interest rate is the yearly rate, interest is calculated daily - compounded.

The only figure that doesn't make sense on there is the £53.59, but the difference is so negligible I wouldn't bother caring about it.

Okay, but where does the £53.59 coming from? Clearly its 3.48% of something?
Reply 3
Avatar for IWMTom
IWMTom
20
Original post by MMM2020
Okay, but where does the £53.59 coming from? Clearly its 3.48% of something?

I don't know..... That's why I said that's the only figure that doesn't make sense................

It's only like £5 away from what I'd expect it to be, so it's simply not worth caring about.
Reply 4
Avatar for MMM2020
MMM2020
OP
2
Original post by IWMTom
I don't know..... That's why I said that's the only figure that doesn't make sense................

It's only like £5 away from what I'd expect it to be, so it's simply not worth caring about.

The interest is calculated on the outstanding balance? So 3.48% of £16963.46 = £590 ??

There must be something im completely missing. £5 away from what? What figure did you get and how did you arrive at it?
Reply 5
Avatar for IWMTom
IWMTom
20
Original post by MMM2020
The interest is calculated on the outstanding balance? So 3.48% of £16963.46 = £590 ??

There must be something im completely missing. £5 away from what? What figure did you get and how did you arrive at it?

Did you read my first reply?

It's 3.48% PER YEAR, calculated DAILY - COMPOUNDED.
Reply 6
Avatar for MMM2020
MMM2020
OP
2
Original post by IWMTom
Did you read my first reply?

It's 3.48% PER YEAR, calculated DAILY - COMPOUNDED.

Hmm makes sense.. thanks dude

Just a tip: have a bit more patience next time

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