Student loans explained


(Beatrice Borbon) #1

Earlier this week we made Monzo available to 16-17 year olds! :rocket:

To welcome our younger Monzo users, we’ve created a couple of guides that might be helpful if you’re preparing to manage your money for the first time.

This one covers student loans – how they work, how to get one, and how you’ll pay it back :point_down:


#2

You’ll more than likely never pay it all back would probably be something to include :joy::wink:


(Sacha) #3

Also worth noting the interest rates paid on newer student loans are significantly higher.

https://www.slc.co.uk/students-and-customers/loan-repayment/interest-rates.aspx

6.1% on the outstanding balance once you earn over £41k and 3.1% before that.


(Will flag Danny for cake) #4

Any reason why this only covers England and Wales? Shouldn’t you also include Scotland and Northern Ireland as well since they are also part of the U.K. and you have customers there?

Northern Ireland link https://www.studentfinanceni.co.uk

Scotland link
http://www.saas.gov.uk


(Peter G) #5

Ouch. (I went to tap :heart: but there’s no way I can like those figures!)


(Andy - Customer of Monzo - Own Thoughts) #6

It’s a bit more complex up here as we don’t typically pay tuition fees but I agree would be nice to see the blog post cover all the nations

This blog explains Scottish system the best


(Will flag Danny for cake) #7

It’s more complex here as well as you can get a loan to study in the Republic and our fees are capped if you study here but not in the rest of the U.K. but a couple of links and a paragraph acknowledging the differences :woman_shrugging:


(Andy - Customer of Monzo - Own Thoughts) #8

Agree even links to 3rd party information would be nice.


(Jack - Customer of Monzo) #9

I’m loving these “How Money Works” blog posts, it’s about time a bank actually did this and educated people! :woman_teacher:


(Beatrice Borbon) #10

@glasgow @Rat_au_van Agree covering Scotland and Northern Ireland would make a nice follow-up :slight_smile:


(Jack - Customer of Monzo) #12

I presumed that’s what she meant


(Beatrice Borbon) #13

Glad you’re finding them useful @Jackcrwhitney! We plan to keep doing more, so let me know if you have any ideas about what we should be covering next!


(Beatrice Borbon) #14

Yep!


(Jack - Customer of Monzo) #15

I’ve been sharing them with some of my friends,

Will do :slight_smile:


(knows someone who knows Tom quite well) #16

But you do charge them to residents of England


(Andy - Customer of Monzo - Own Thoughts) #17

we charge them to rUK yes.


(knows someone who knows Tom quite well) #18

Sore point for me - my daughter, who is 50% Scottish, studied in Edinburgh and was charged, yet any number of European students were not.

I wonder what happened to the challenge that was going to the European courts…


(Andy - Customer of Monzo - Own Thoughts) #19

Can’t say I’ve heard anything but I know it’s been confirmed that Scottish and EU students will continue to not pay tuition fees in Scotland after #brexit.


(Beatrice Borbon) #20

Edited accordingly!


(Michael) #21

Eeek! My Rate 1 loan was 1.25% and went up to 1.5% earlier this year, been paying it for 3 years now and it’s actually finally starting to go down!