Val
I don't know about colleagues at other institutions, but I
am more than slightly offended by this message.
My staff and I are more than well aware of the procedure by
which student loans operate. Given the countless
complaints that we receive from students concerning the
advice and service given by SLC staff, I think that there
is more than a whiff of kettles and black pots here.
Quoting the standard SLC response to anecdotal stories from
students, unless you are able to provide details of who
these students spoke to and when, I regret that we will be
unable to take your comments on board.
Neil...
On Fri, 21 Nov 2003 17:16:24 +0000 Val Bryan
<[log in to unmask]> wrote:
> Dear Colleagues
>
> Following issue of Annual statements we have had feedback
> from various students claiming that HEI advisors have told
> them that student loans are "interest free".
>
> This is not the case although Student loans are not
> commercial loans interest is applied. The Government
> subsidises the actual cost of interest on the loans, so
> they do not attract the same rates of interest charged
> if as that from a bank or building society. However, to
> make sure that all borrowers effectively pay back the same
> amount that they borrowed, the Government has to keep the
> value of what is owed in line with the general rate of
> inflation. This is done by working out the rate of
> inflation each year as defined by the Retail Prices Index
> (RPI) and fixing the interest charged to that rate. This
> means that however long it takes to repay loan, in real
> terms no more will be paid back actually borrowed.
>
> Furthermore to protect the interests of borrowers, there is
> a limit to the rate of interest that can be charged. This
> will be equal to the bank base rate plus 1%. As the bank
> base rate moves up and down this could mean that, in
> certain circumstances, the rate of interest charged on
> student loans could change during the year. If, for
> example, the base rate plus 1% fell below the rate of
> interest being charged on student loans, the SLC
> would reduce the student loan rate to match it. Normally,
> however, the RPI is lower than the base rate plus 1%.
>
> From the moment a loan is paid and until paid off in full,
> interest will be charged on a daily basis. The interest
> will be 'compounded', that is, added to the total amount
> owed, every month.
>
> The RPI used is set annually before each new Academic Year
> and is based upon the percentage difference between the
> retail prices all items index published by the Office for
> National Statistics.
>
> That is why some documentation will not quote the actual
> specific rate applicable because at time of publishing this
> will not yet have been calculated. Websites and other
> documentation however do actually explain how interest is
> set and calculated.
>
> Once the RPI has been set and agreed we do publish this
> information. For example it is currently on the 'latest
> news' section on the SLC website.
>
> Also on Saturday 9/8/03 SLC placed a Notice in the
> following Newspapers advising of the interest rate change
>
>
> The Guardian
>
> The London Times
>
> The Independent
>
> The Glasgow Herald
>
> The Scotsman
>
> Sent on behalf
> Stephen Hainey MICM
> Student Support Liaison Manager
>
>
>
> ***************************************************************************
> The information in this e-mail is confidential and for use
> by the addressee(s) only. If you are not the intended
> recipient (or responsible for delivery of the message to
> the intended recipient) please notify us immediately on
> 0141 306 2050 and delete the message from your computer.
> You may not copy or forward it or use or disclose its
> contents to any other person. As Internet communications
> are capable of data corruption Student Loans Company
> Limited does not accept any responsibility for changes
> made to this message after it was sent. For this reason it
> may be inappropriate to rely on advice or opinions
> contained in an e-mail without obtaining written
> confirmation of it. Neither Student Loans Company Limited
> or the sender accepts any liability or responsibility for
> viruses as it is your responsibility to scan attachments
> (if any). Opinions and views expressed in this e-mail are
> those of the sender and may not reflect the opinions and
> views of The Student Loans Company Limi! ted.
>
> This footnote also confirms that this email message has
> been swept for the presence of computer viruses.
>
> **************************************************************************
>
>
> This incoming email to UWE has been independently scanned
> for viruses and any virus detected has been removed using
> McAfee anti-virus software
>
>
----------------------------------------
Neil Harrison
Head of Student Advice & Welfare Services
University of the West of England
Frenchay Campus, Coldharbour Lane
Bristol, BS16 1QY
E-mail: [log in to unmask]
Tel : (0117) 344 2822
Fax : (0117) 344 2895
|