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2012/2013 Loan Repayments

Discussion in 'Thinking of teaching' started by thatdannyguy, Feb 23, 2012.

  1. Hi All!

    I have recently been offered an unconditional offer at MMU to start my PGCE in September. I have already done my degree and so my loans will obviously be repaid at the 9% of Salary over £15000.

    Student teachers starting their PGCEs this year will be paying back on the new system at 9% of Salary over £21000.
    Does this mean we will be paying 18% of earnings of £21000? I've looked through all of the relevant sites etc. But I cannot see anything to either confirm this or if there is some other arrangement for people with both Pre 2012 loans and Post 2012 loan.

    Surely we cannot be expected to pay 18% of our wages after £21000.

    Does anyone have any idea on how it will be re-payed etc?
     
  2. chloe1402

    chloe1402 New commenter

    I've been wondering the same thing too! and again cant find any answers
     
  3. ml01omm

    ml01omm New commenter

    Yes - I desperately want to know that too.
     
  4. I believe the post 2012 loan will over rule. 9% of everything is still a considerable amount.
     
  5. Guys, they are separate loans.

    For example if you have a loan with a bank and then take another out - you make two payments a month as they both have different T&Cs. Unless you consolidate them! However Student Finance doesn't consolidate your loans.

    Therefore your current student loan will remain on 9% of earnings above £15k T&Cs and your (new) 2012/13 student loan will be based on 9% above £21k T&Cs. So two student loans payments will be deducted each month if you are earning above £21k.

    However it is my understanding that they will take into account both student loan payments when working out payments i.e. they will calculate the payment for the old student loan first, once that annual figure is deducted then they will calculate the 9% for the second.

    Obviously there will be many factors to consider; what if you are only earning £19k - you will only be required to pay the older loan payments. etc etc..

    I hope this has shed some light on a otherwise murky subject.
     
  6. chloe1402

    chloe1402 New commenter

    As a teacher we are going to go over the £21k threshold, as Tda states 'A newly qualified teacher will earn a minimum of £21,588'

    If my calculations are correct (and I've understood correctly, I'm very confused about it all) then we'd be paying approx £593 per year for the old student loan then approx £53 per year for the new loans. That's looking at being on the minimum we could earn being NQT'S. - Someone please correct me if I've worked this out wrong!!

    Looking at it like that makes it sound a bit better if we have to pay them separately, since its an extra £5 a month. Although this is obviously going to change as our earnings do. I highly doubt that we'd be able to pay back all the loans on the new repayment scheme, look at the difference in what we'd be paying!
     
  7. For a full answer, use this link:
    http://forums.moneysavingexpert.com/showthread.php?t=3766489
    We will still only pay 9% of everything over 15k ( though the threshold is being increased in increments to 21k in 2016 ), and the payment will be split equally between the old and new loans.
    I hope this clears any confusion.
    Wendy
     

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