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Long-term Student Debt To Have Knock-on Effect

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Is it not possible to make it a criminal offence to default on a student loan.

This would save the Government that many millions it is investing in trying to make everyone a criminal to cover up the fact that they cannot deal with real criminals.

Edited by laurejon

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Is it not possible to make it a criminal offence to default on a student loan.

This would save the Government that many millions it is investing in trying to make everyone a criminal to cover up the fact that they cannot deal with real criminals.

Erm, not sure what you mean by this. Very odd reply methinks....

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I think he's trying to say it's all about the stats - Student loans aren’t in the same bag as other debts.

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sshhhh...you'll spoil the suprise....

besides..they can afford ipods cant they.

so why not our VASTLY overpriced natty scratbucket houses ?

If I was a student leaving uni with £20K of debt the solution would be obvious. Takeout an IO mortgage for as much as you can ( lie to buy of course) and snap up a poxy little chrome and laminate shoe box for about 5 times the construction costs.... then just sit back and watch your investment grow. Then just sell up and cash in and with my big fat profit pay off my debts and snap up a portfolio of properties in Bulgaria with the loose change . Hey presto from indebted impoverished student to property millionaire in one maybe two years. Get with the program suckers.

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Figures from the Student Loans Company (SLC) show £186.3m worth of loan repayments were in arrears by the end of the financial year in 2005-06

What a joke! The SLC cant even tell me how much I owe, the interest rate I am being charged, the amount I have paid this year. How can they have any idea how much former students owe?

Has anyone else had the pleasure of trying to extract any useful information from the bunch of inbreds at the SLC?

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What a joke! The SLC cant even tell me how much I owe, the interest rate I am being charged, the amount I have paid this year. How can they have any idea how much former students owe?

Has anyone else had the pleasure of trying to extract any useful information from the bunch of inbreds at the SLC?

Several people I know who have started to repay their loan have been advised by the SLC to keep their payslips in case they ever have to prove that the repayments have actually been made. Apparently SLC are very good at losing its records of what repayments you've made and when.

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What a joke! The SLC cant even tell me how much I owe, the interest rate I am being charged, the amount I have paid this year. How can they have any idea how much former students owe?

Has anyone else had the pleasure of trying to extract any useful information from the bunch of inbreds at the SLC?

Yes, I repaid mine early as the interest rate had shot up and was getting close to the rate the sum was earning in my ISA

The reason they don't know how much you have paid is that the inland revenue take the payments from you but pay the SLC annually. Therefore they can only tell you in the start of the financial year.

I sent photocopies of all my pay slips to them and we agreed on a settlement figure

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Yes, I repaid mine early as the interest rate had shot up and was getting close to the rate the sum was earning in my ISA

The reason they don't know how much you have paid is that the inland revenue take the payments from you but pay the SLC annually. Therefore they can only tell you in the start of the financial year.

I sent photocopies of all my pay slips to them and we agreed on a settlement figure

I imagine if someone told all the current new graduates about this they'd be rather worried. As if they're not worried enough already having to look for a job etc when there aren't really any around.

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This was mentioned at work on Friday, and the only question to pop up was "how are all these students going to get a mortgage?" Yes indeed, how?

Oh, and the SLC are one big ****** up. They still havn't sent me a statement for year 03/04 (well they did, but it was totally wrong).

The current interest rate is 3.2% on SLC debt.

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The current interest rate is 3.2% on SLC debt.

What?!?!?!? I thought it was supposed to be fixed with inflation, which is supposed to be 2.2%! Oh well, as long as it's less than the interest I get from my ISA I'll know to carry on paying into that instead of thinking about paying off my SL early.

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What?!?!?!? I thought it was supposed to be fixed with inflation, which is supposed to be 2.2%! Oh well, as long as it's less than the interest I get from my ISA I'll know to carry on paying into that instead of thinking about paying off my SL early.

It's pegged to RPI

Source: http://www.studentsupportdirect.co.uk/port...schema=PROTOCOL

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What?!?!?!? I thought it was supposed to be fixed with inflation, which is supposed to be 2.2%! Oh well, as long as it's less than the interest I get from my ISA I'll know to carry on paying into that instead of thinking about paying off my SL early.

Talking of inflation.

http://www.brad.ac.uk/external/prospectus/ug/loans-2006.php

The maximum loan for maintenance available increases each year in line with inflation. However, from 2006 the maximum loan amount is being raised above the rate of inflation to more closely reflect the basic living costs of students

Edited by OnlyMe

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Talking of inflation.

http://www.brad.ac.uk/external/prospectus/ug/loans-2006.php

The maximum loan for maintenance available increases each year in line with inflation. However, from 2006 the maximum loan amount is being raised above the rate of inflation to more closely reflect the basic living costs of students

Well, there are so many things that rise faster than inflation for students, like last year for example tuition fees were about £1000, this year they're putting them up to around £3000 !!

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Well, there are so many things that rise faster than inflation for students, like last year for example tuition fees were about £1000, this year they're putting them up to around £3000 !!

That's on top of the "basic living costs" which is given as the reason for above CPI increase in available debt.

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When you apply for a mortgage the banks dont take into account your student load, so it doesnt really effect buying a house, other than personal affordability.

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When you apply for a mortgage the banks dont take into account your student load, so it doesnt really effect buying a house, other than personal affordability.

Some of them do (or at least did). I got some quotes 3/4 years ago and they all deducted the £35/month I was paying on my single student loan to work out what I could "afford" hence reducing my borrowing and with noo deposit at the time they would onyl give me a mortage for ~£60,000 which even a few years ago meant you were scuppered in the Edinburgh property market (the offers over system being the main problem - properties on at offers only £60,000 were being valued at £70,000 and sold for £80,000 - no deposit - mortage won't cover more then the valuation so no chance)

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Read this:

http://news.bbc.co.uk/1/hi/education/5086158.stm

Common sense I would have thought, but nice to see some recognition of the problem and its relationship to other types of borrowing and asset acquisition.

OD

This is so obviously going to affect the "market" as the years roll by...... big time....

Edited by eric pebble

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Some of them do (or at least did). I got some quotes 3/4 years ago and they all deducted the £35/month I was paying on my single student loan to work out what I could "afford" hence reducing my borrowing and with noo deposit at the time they would onyl give me a mortage for ~£60,000 which even a few years ago meant you were scuppered in the Edinburgh property market (the offers over system being the main problem - properties on at offers only £60,000 were being valued at £70,000 and sold for £80,000 - no deposit - mortage won't cover more then the valuation so no chance)

Depends if you tell them or not! When I bought my house I had about £4k still outstanding on a student loan that I hadn't started paying off. When I completed the mortgage application I genuinely forgot to mention it. If there aren't any repayments going out of your account then (under the old style loans) there was no way for a lender to find out. They don't show up on credit reports for example.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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