Objective Developer Posted June 16, 2006 Share Posted June 16, 2006 (edited) 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 Edited June 16, 2006 by Objective Developer Quote Link to comment Share on other sites More sharing options...
laurejon Posted June 16, 2006 Share Posted June 16, 2006 (edited) 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 June 16, 2006 by laurejon Quote Link to comment Share on other sites More sharing options...
Objective Developer Posted June 16, 2006 Author Share Posted June 16, 2006 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.... Quote Link to comment Share on other sites More sharing options...
tentboy Posted June 16, 2006 Share Posted June 16, 2006 I think he's trying to say it's all about the stats - Student loans aren’t in the same bag as other debts. Quote Link to comment Share on other sites More sharing options...
tonification Posted June 17, 2006 Share Posted June 17, 2006 Its hilarious how the older generation expect this impoverished, indebted and smaller-in-number younger generation are going to buy their £350k terraces. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted June 17, 2006 Share Posted June 17, 2006 sshhhh...you'll spoil the suprise.... besides..they can afford ipods cant they. so why not our VASTLY overpriced natty scratbucket houses ? Quote Link to comment Share on other sites More sharing options...
Bearfacts Posted June 17, 2006 Share Posted June 17, 2006 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. Quote Link to comment Share on other sites More sharing options...
Darth_Calculus Posted June 17, 2006 Share Posted June 17, 2006 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? Quote Link to comment Share on other sites More sharing options...
tomr Posted June 17, 2006 Share Posted June 17, 2006 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. Quote Link to comment Share on other sites More sharing options...
Ritters Posted June 18, 2006 Share Posted June 18, 2006 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 Quote Link to comment Share on other sites More sharing options...
tomr Posted June 18, 2006 Share Posted June 18, 2006 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. Quote Link to comment Share on other sites More sharing options...
Jason Posted June 18, 2006 Share Posted June 18, 2006 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. Quote Link to comment Share on other sites More sharing options...
tomr Posted June 18, 2006 Share Posted June 18, 2006 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. Quote Link to comment Share on other sites More sharing options...
Jason Posted June 18, 2006 Share Posted June 18, 2006 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 Quote Link to comment Share on other sites More sharing options...
tomr Posted June 18, 2006 Share Posted June 18, 2006 It's pegged to RPI Source: http://www.studentsupportdirect.co.uk/port...schema=PROTOCOL Ah of course, RPI being the measure of inflation that includes mortgage repayments, and obviously almost all graduates take out a mortgage almost immediately after graduating! Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted June 18, 2006 Share Posted June 18, 2006 (edited) 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 June 18, 2006 by OnlyMe Quote Link to comment Share on other sites More sharing options...
tomr Posted June 18, 2006 Share Posted June 18, 2006 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 !! Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted June 18, 2006 Share Posted June 18, 2006 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. Quote Link to comment Share on other sites More sharing options...
zag2me Posted June 19, 2006 Share Posted June 19, 2006 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. Quote Link to comment Share on other sites More sharing options...
lulu Posted June 19, 2006 Share Posted June 19, 2006 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) Quote Link to comment Share on other sites More sharing options...
eric pebble Posted June 19, 2006 Share Posted June 19, 2006 (edited) 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 June 20, 2006 by eric pebble Quote Link to comment Share on other sites More sharing options...
Neil D Possitt Posted June 20, 2006 Share Posted June 20, 2006 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. Quote Link to comment Share on other sites More sharing options...
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