Interesting Statistics

[Stinson]

I managed to read a press release from the Student Loans Company. According to them, for the year 2008-09, 2.9 million college students in UK applied for loans.

[Emma Roberts]

I see. Do you have any data on the status of payments?

[Stinson]

I'll try to look into that. But their figures say that of the 2.9 million accounts, 1.8 million were liable for repayment.

[Stinson]

You do know how a student loan works right?

[Chuck]

You do know how a student loan works right?

I'll help you here. The first loan a student can get is mainly for the purpose of course fees. The student cannot actually get this money. This is because the fees are paid directly to the university where the student decides to study. Most students apply for loans as course fees of over £3000 are not easy to just pay up front.

If you've applied for a loan, you don't start to pay it back until you earn at least £15000 a year. All this is sorted by the Student Loans Company for you before you actually get your wage paid as it uses the UK tax system to claim the repayments. You won't be required to pay it all at once.

For example, say you earn £21000 a year. Then your weekly repayments would be around £10. The more you earn, of course, the higher your repayments are. However the payments will be at an appropriate proportion to your income.

[Mark Russel]

The government also won't force you to pay if it seems you would find it difficult to do so.

[Prof Henry]

The government also won't force you to pay if it seems you would find it difficult to do so.

The government though makes sure that you pay it. Even if you file for bankruptcy or insolvency, you will still need to pay it. There are now three things that you can't avoid in life. Death, taxes and student loans.

[Emma Roberts]

You do know how a student loan works right?

Well now I do.

[Emma Roberts]

I'll help you here. The first loan a student can get is mainly for the purpose of course fees. The student cannot actually get this money. This is because the fees are paid directly to the university where the student decides to study. Most students apply for loans as course fees of over £3000 are not easy to just pay up front.

If you've applied for a loan, you don't start to pay it back until you earn at least £15000 a year. All this is sorted by the Student Loans Company for you before you actually get your wage paid as it uses the UK tax system to claim the repayments. You won't be required to pay it all at once.

For example, say you earn £21000 a year. Then your weekly repayments would be around £10. The more you earn, of course, the higher your repayments are. However the payments will be at an appropriate proportion to your income.

Thanks Chuck!

[Chuck]

Thanks Chuck!

You're welcome.