Martin Lewis hits out at ‘dangerous’ new tool from Student Loans Company

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Martin Lewis, founder of MoneySavingExpert, has been campaigning against scam ads online for over a year: Steve Parsons/PA Archive/PA Images
Martin Lewis, founder of MoneySavingExpert, has been campaigning against scam ads online for over a year: Steve Parsons/PA Archive/PA Images

Financial campaigner Martin Lewis today blasted the Student Loans Company’s new website, dubbing it “demoralising, damaging and dangerous”.

The SLC moved its site from SLC.co.uk to Gov.uk and features tools to show students how much they owe.

However Lewis argued the tools encourage students to pay off their debts faster, even though there is no financial benefit to doing so. Annual repayments are set at 9% of anything a former student earns over a certain threshold, which is currently £26,575 per year.

Lewis, the founder of financial planning site Moneysavingexpert.com and the former head of the independent taskforce on student finance information, said: “The first thing university leavers see when they log in, in a large font, is the amount of ‘debt they owe’. This is demoralising, damaging and dangerous….

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Student Loans Company accused of encouraging graduates to make unnecessary payments

dhita yudha

Rex
Rex

The universities minister has been urged to intervene following claims the Student Loans Company is giving graduates a “demoralising, damaging and dangerous” picture of their debts.

Martin Lewis, the consumer affairs journalist, has accused the company of urging graduates to make payments they don’t have to make.

Mr Lewis, the founder of Money-SavingExpert.com website, criticised the SLC’s new repayments website.

The site highlights an overall balance from the loans taken out as students.

But Mr Lewis said it failed to point out that the size of the debt made no difference to the amount graduates had to pay, which is linked to income.

Estimates suggest many people will never have to pay back the full balance of their debt, he added.

Repayments are currently set at 9% of a graduate’s income above £26,575. Any remaining debt not paid off after 30 years is written off.

Mr Lewis called on

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Martin Lewis hits out at “dangerous” new tool from Student Loans Company

dhita yudha

Martin Lewis, founder of MoneySavingExpert, has been campaigning against scam ads online for over a year: Steve Parsons/PA Archive/PA Images
Martin Lewis, founder of MoneySavingExpert, has been campaigning against scam ads online for over a year: Steve Parsons/PA Archive/PA Images

Financial campaigner Martin Lewis today blasted the Student Loans Company’s new website, dubbing it “demoralising, damaging and dangerous”.

The SLC moved its site from SLC.co.uk to Gov.uk and features tools to show students how much they owe.

However Lewis argued the tools encourage students to pay off their debts faster, even though there is no financial benefit to doing so. Annual repayments are set at 9% of anything a former student earns over a certain threshold, which is currently £26,575 per year.

Lewis, the founder of financial planning site Moneysavingexpert.com and the former head of the independent taskforce on student finance information, said: “The first thing university leavers see when they log in, in a large font, is the amount of ‘debt they owe’. This is demoralising, damaging and dangerous….

Read More

With mortgage rates now under 3%, most home loans are due for a refinance, study says

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Few people ever expected to see mortgage rates slide so low, and many homeowners have been caught off guard. Thirty-year fixed-rate mortgages are now averaging less than 3% in multiple surveys — and are offering major refinance savings.

Though mortgage holders have been flocking to get new loans with sharply reduced interest rates, plenty of homeowners are still sitting on mortgages that are now too expensive.

In fact, a new report from mortgage company Fannie Mae says most mortgages with outstanding balances should be refinanced. Maybe that includes yours.

If you have a mortgage that’s closer to 4% than 3%, your monthly mortgage payment is probably hundreds of dollars higher than it could be.

Who needs to refinance?

Roschetzky Photography / Shutterstock

An estimated 60% of homeowners with mortgages can chop down their interest rates by at least one-half of one percentage point by refinancing, Fannie Mae says.

“The

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Congress should consider forgiving smaller business loans

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Treasury Secretary Steven Mnuchin told lawmakers on Friday that they should consider automatic forgiveness for many loans under the Paycheck Protection Program, the $670 billion government-backed rescue of small businesses.

“I know one of the things we’ll talk about is: Should we just have forgiveness for all the small loans?” Mnuchin said during testimony to the House Small Business Committee. “That’s something we should consider. We should obviously make sure there’s some fraud protection.”

He didn’t specifically endorse the threshold of forgiveness for all loans of $150,000 or less that a large group of industry trade associations have advocated for.

The Treasury chief’s comments come as Congress is considering another coronavirus relief package, including for businesses. The small business aid program, under which loans can be forgiven if companies meet certain benchmarks, is scheduled to end Aug. 8.

Treasury and the Small Business Administration earlier this month released the names

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Buy now, pay whenever? Lockdown lift for online shopping loans

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By Nikhil Nainan

(Reuters) – Browsing online during lockdown, Jessica Friend spotted a pair of Ray-Ban sunglasses she liked, but the price tag made the 30-year-old Ohio resident think twice.

What persuaded her to click ‘buy’, Friend said, was the short-term credit offered by Afterpay, which split the $260 payment into four interest-free instalments.

Afterpay is among a handful of alternative credit firms which offer small loans, mostly to online shoppers, and make their money by charging merchants a 4%-6% commission.

These buy-now-pay-later (BNPL) firms have benefited from a shift to online shopping during the coronavirus crisis in countries including the United States, where state aid has also boosted retail sales.

“I’m more inclined to use them because they make it easier to afford to get the things I want all at once … and when I want to splurge on something,” Friend said of the loans.

Some investors are

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