leading on from the bank charges discussion: Student loans..

[Mey]

So i've been doing abit of reading in regards to the bank charges and so on, and just generally looking over legislation and so on, and came across something rather interesting.

Apparently, if you are declared bankrupt, you 're student loan debt is exempt from this.

I'm suprised nobody has challenged this yet..

edit: never mind found my own answer, it got changed about 4-5 years ago because people were declaring themselves bankrupt for the 250 quid court fees to clear their student debt bugger there goes that plan >:

 

[tris-]

i never realised i would get charged so much interest on my loan.

but fuck it, only pay back a bit every month anyway

 

[Rubric]

So i've been doing abit of reading in regards to the bank charges and so on, and just generally looking over legislation and so on, and came across something rather interesting.

Apparently, if you are declared bankrupt, you 're student loan debt is exempt from this.

I'm suprised nobody has challenged this yet..

edit: never mind found my own answer, it got changed about 4-5 years ago because people were declaring themselves bankrupt for the 250 quid court fees to clear their student debt bugger there goes that plan >:

Yeah it was a bit of give and take. Length of bankruptcy shortened to around a year but student loans not allowed to be included anymore.

 

[Amildin]

i never realised i would get charged so much interest on my loan.

but fuck it, only pay back a bit every month anyway

how much is it, out of interest? (no pun intended )

 

[tris-]

how much is it, out of interest? (no pun intended )

about £15 a month iirc

 

[Chronictank]

Stick the loan in a high interest account like a ISA and you will make money on it

 

[Mey]

Ye becasuse that's an option for everyone whos parent's don't pay their rent..

 

[- English -]

declaring bankrupcy isnt the wisest move on the planet

 

[gohan]

Stick the loan in a high interest account like a ISA and you will make money on it

isa can only have 3k a year (3.6 in march) and pays like 5% ish where as headline laon rate atm is 7.4% so you'd just be losing money

 

[Rubric]

declaring bankrupcy isnt the wisest move on the planet

Depends on your circumstances. Not a nice experience but it is a good option for some people.

 

[Chronictank]

isa can only have 3k a year (3.6 in march) and pays like 5% ish where as headline laon rate atm is 7.4% so you'd just be losing money

Was 2.4% when i was in full time education yrs ago, its 4.8% now afaik
ISA depending where you go can range from 5% to 6.4% (halifax, shit bank but if all that is going in there is your loan you dont need to worry about that)

Now seeing as you get your loan at the beginning of the year (at least you used to) you still have interest being built on it throughout the year until semester 2 when you fleece your account. So that+part time tesco (which almost everyone i knew in uni had a job part time job of some sort except those who didnt need one) meant profit rather than deficit

Also at the end of the day high interest in an ISA while your money just sits there is free money, why on earth wouldnt you?


@mey; just because your too stupid to manage your finanaces or get advice doesnt meant everyone else should be

 

[tris-]

Stick the loan in a high interest account like a ISA and you will make money on it

sadly im not a millionaire or i would.
i live at home rent free but i still need a job, an overdraft and a loan to pay for life.

 

[Chronictank]

sadly im not a millionaire or i would.
i live at home rent free but i still need a job, an overdraft and a loan to pay for life.

see above, you dont need to be a millionaire.. just decide whether you want to have debt looming over you or you want to do something about it

You dont NEED to go out every night of the week and get lashed (incidently going to open-house parties will save you a fortune in that respect ) , you dont NEED that xbox, or the latest games...

And if anyone posts all their money is going on food, rent and school supplies etc, cut the crap you know as well as i do thats simply not true (in the uk)
And if it is, find somewhere else to live as you very obviously are staying in a place beyond your means

 

[tris-]

sorry but there is no way i could only live on £50 a week from my job

 

[Chronictank]

sorry but there is no way i could only live on £50 a week from my job

you live at home though, and you are getting a student loan
£50 p week is on top of your loan, i dont know how you arranged it but a couple of years ago it was a lump sum at the beginning of the year and it was up to you how you spent it.
dump it in a high interest account and even if you dont cover all of the interest on the loan you cover some of it at least do you not? £50 can easily cover the £15 p month (that likes 2 pints)

declaring yourself bankrupt will ruin your credit rating for years as well as you having no control of your assets, in addition if you are in work they may force you into a income payments order meaning you have to pay your creditors anyway for 3 yrs? (cant remember the exact length)

Your training to be a lawyer aren't you tris? surely you know that every time you get a loan/mortgage you need to tell the lender you have been bankrupt in the past
Which probably menas a much higher interest rate, if they approve you at all

 

[Chronictank]

late edit: correct me if any of the above is incorrect

 

[tris-]

see above, you dont need to be a millionaire.. just decide whether you want to have debt looming over you or you want to do something about it

You dont NEED to go out every night of the week and get lashed (incidently going to open-house parties will save you a fortune in that respect ) , you dont NEED that xbox, or the latest games...

And if anyone posts all their money is going on food, rent and school supplies etc, cut the crap you know as well as i do thats simply not true (in the uk)
And if it is, find somewhere else to live as you very obviously are staying in a place beyond your means

actually i dont go out drinking every night, i go out once a month if that. i have a car to pay for, debts to pay for that i ran up before uni, gym fees, phone fees. i have to pay out more than i earn per week put it that way.
hopfully i can clear my previous debts before next year, then i can end uni on a positive bank balance. ive been living in my overdraft the last 1.5 years.

and close, not a lawyer. trading standards officer

 

[Chronictank]

actually i dont go out drinking every night, i go out once a month if that. i have a car to pay for, debts to pay for that i ran up before uni, gym fees, phone fees. i have to pay out more than i earn per week put it that way.
hopfully i can clear my previous debts before next year, then i can end uni on a positive bank balance. ive been living in my overdraft the last 1.5 years.

and close, not a lawyer. trading standards officer

Hehe that wasn't aimed at you directly , was more for people still in uni

Fear not when you earn 50k you can put us peons to shame

 

[Himse]

Just set up internet banking, you can take the interest you earn per month from the ISA out anyway so its extra money

 

[Rubric]

you live at home though, and you are getting a student loan
£50 p week is on top of your loan, i dont know how you arranged it but a couple of years ago it was a lump sum at the beginning of the year and it was up to you how you spent it.
dump it in a high interest account and even if you dont cover all of the interest on the loan you cover some of it at least do you not? £50 can easily cover the £15 p month (that likes 2 pints)

declaring yourself bankrupt will ruin your credit rating for years as well as you having no control of your assets, in addition if you are in work they may force you into a income payments order meaning you have to pay your creditors anyway for 3 yrs? (cant remember the exact length)

Your training to be a lawyer aren't you tris? surely you know that every time you get a loan/mortgage you need to tell the lender you have been bankrupt in the past
Which probably menas a much higher interest rate, if they approve you at all

6 Years and it drops off your credit file, On £50 a week highly unlikely for an IPO and as long as circumstances do not change until after discharge, which can be as short as 9 months these days then there never will be an IPO.

Probably Irrelevant anyway as student loands are exempt from bankruptcy as per the original post. How much are your debts outside of you student stuff tris?

 

[Mey]

@mey; just because your too stupid to manage your finanaces or get advice doesnt meant everyone else should be

Lol I manage my finanaces perfectly fine thanks. This month's pay and my student overdraft that i built up stupidly in first year is gone forever.

Also if you want to act like you know what you are doing, you are playing the banking system wrong. What you want to do is open a number of student accounts at different banks, bounce your student loan between all off them. Ask for the Interest free overdraft they offer, open a savings account, transfer interest free overdraft into high savings. Bob's your uncle.

 

[Chronictank]

Lol I manage my finanaces perfectly fine thanks. This month's pay and my student overdraft that i built up stupidly in first year is gone forever.

Also if you want to act like you know what you are doing, you are playing the banking system wrong. What you want to do is open a number of student accounts at different banks, bounce your student loan between all off them. Ask for the Interest free overdraft they offer, open a savings account, transfer interest free overdraft into high savings. Bob's your uncle.

Completely irrelevant,
i said to put your money in an ISA so you get a higher interest rather than leave it where it is then wait until you are in the shitter and declare yourself bankrupt and you seemed to disagree

I am not pretending to know anything, but i also am not in debt so cant be doing something wrong either

 

[Mey]

Your posts didn't actually make all that much sense tbh. Even after reading them I still have no idea what you are trying to tell us.

The bit about declaring myself bankrupt to negate student loans was a joke. I can't do it anyway because the of the job i'll be going for after uni disqualifies you if you have been declared bankrupt at any point in your life.

Student loans are paid term by term, it's pretty impossible for me to stick my loan into savings seeing as it goes out 1-2 days after term starts to pay for my rent for that term.

Also ISA aren't instant access and have limits on the amount you can withdraw from them so again not very useful if you are up the shitter and need some cash quickly. You seemed most concerned with making the most amount of interest in order to cover the loan interest (even though this will be more than what you make from saving it - but hey-ho). If you want to make free money, I guarentee the opening of student accounts with interest free overdrafts, then placing the full amount into a savings account is the way to do it.

 

[Rubric]

The bit about declaring myself bankrupt to negate student loans was a joke. I can't do it anyway because the of the job i'll be going for after uni disqualifies you if you have been declared bankrupt at any point in your life.

Or because you can't do it as they are exempt.

 

[Mey]

Well i know that know as per the edit of my first post LOL

 

[swords]

I get the feeling that a few people here do not fully understand what a student loan actually is...

 

[pikeh]

see above, you dont need to be a millionaire.. just decide whether you want to have debt looming over you or you want to do something about it

You dont NEED to go out every night of the week and get lashed (incidently going to open-house parties will save you a fortune in that respect ) , you dont NEED that xbox, or the latest games...

And if anyone posts all their money is going on food, rent and school supplies etc, cut the crap you know as well as i do thats simply not true (in the uk)
And if it is, find somewhere else to live as you very obviously are staying in a place beyond your means

i earn about £350 a month from working at sainsburys which takes up 3 evenings (sixteen hours in total) a week. my rent is £290, the going rent for a student house in Bath. bills often are about £30 a month, and studio fees are about £25 - a new sketchbook/inks/etching plates etc. shopping accounts to about £50 a month altogether if i decide to do a big shop. i would say on average i get "lashed" once a week, but i go out for random pints etc.
i have been living out of my overdraft since the 2nd term of the first year (2 years ago now) and only break even when i get my student loan in.
i dont have any consoles, i very very rarely buy games. if i wanted to up my hours at Shitburys, then i think i would seriously jeapordise my education as im finding the work load at uni particularly heavy at the moment with live briefs coming and going. i dont often buy new clothes and if i do, its becuase i genuinely need them. fair enough, i have a good time, but i dont go out and blow my money on stuff i dont really need.
the most money ive blown on one thing at uni? probably a trip to new york, and also the trip to morocco, all organised by the uni as a study trip which i have no regrets about whatsoever.
no i dont want debt looming over me, and no, i cant do much about it at the moment. i play the lottery every week though!

so my wage from 'burys covers my unavoidable living costs, and the rest i spend on having a good time etc comes out of my overdraft.

 

[tris-]

its hardly a bad debt anyway.
considering you only pay back so much per month dependant on earnings.

 

[Lamp]

A mate of mine declared himself bankrupt. The funny thing is that you need to pay £400+ in court fees to declare yourself bankrupt. But if you're skint, how can you afford the £400...

Anyway, his credit rating is screwed for 6 years from his bankruptcy. He can't even get a mobile phone on a contract.

Declaring bankruptcy should be the absolute last recourse, but he's got rid of a 6-figure debt, his year has past, and now he's starting afresh

 

[tris-]

6 figure debt, what did he do?
failed business or something?