The Local is not responsible for content posted by users.
This discussion forum closed permanently on 25th February 2021.
  Reply to this topic

Student loans from CSN

Anyone understand how they work?

CosmoKramar
post 13.Feb.2012, 09:25 PM
Post #1
Joined: 15.Jan.2012

So...in the UK student loan repayments are handled through the tax system and they take the payments off you automatically, once you're earning enough to be able to afford it. So despite everyone's complaints about student debt, really it's a pretty good deal, both in terms of convenience and affordability - you don't have to arrange anything, and if you're paying back your student loan it means you're doing okay in life generally.

Now, as I understand it, Swedish student loans from CSN work quite differently? Is it correct that you get a year's grace period after the end of your studies, but then you have to start paying back whether you're employed or not? And the onus is on you to arrange and schedule those payments from your bank account?

Does this mean that if you're a Swedish student with a CSN loan, if you don't manage to find a steady job within a year of graduating, you have CSN essentially pursuing you as a debtor and dragging you through bankruptcy court or the equivalent? Or what? Because that would seem like a pretty harsh (and not very Swedish) way of going about it. Don't get me wrong, I don't advocate sponging or living off the state, but...it would seem kind of counter-productive to make your young people into debtors and, if they struggle to find employment, compound their misery and hardship by chasing them for money they don't have?

I've tried to find out about this from CSN themselves, but they seem suspiciously vague and non-commital, saying only "you can apply for a reduction in the annual amount" you repay...but...if you didn't have any income, surely you'd need that "reduction" to be to zero? And "you can apply..." seems to suggest that your application may not necessarily be accepted? It all seems very vague and not reassuring if you're a student considering your financial future...
Go to the top of the page
+
Puffin
post 13.Feb.2012, 10:44 PM
Post #2
Location: Dalarna
Joined: 5.Apr.2006

You pay a percentage of income - if your income changes dramatically then you can apply for a reduction - but it will depend on you individual circumstances - for example many unemployed people will be getting 80% of their previous salary from A-kassa even when unemployed s they will still have to pay something

Each year CSN sends you a schedule based on your tax declaration for the year before telling you how much to pay each month - so you just set up a bank payment
Go to the top of the page
+
Solith
post 13.Feb.2012, 10:48 PM
Post #3
Joined: 9.Jul.2006

QUOTE (CosmoKramar @ 13.Feb.2012, 09:25 PM) *
So...in the UK student loan repayments are handled through the tax system and they take the payments off you automatically, once you're earning enough to be able to afford ... (show full quote)

Ha. They sign you up to a loan, hike the interest rate massively once you graduate (which doesn't then fall in line with the rest of the banking loans etc. when the economy tanks) and tell you to be grateful that you don't qualify for repayments as you build a larger and larger debt, which I calculate I'll reach pension age before I pay off.

Then when you move abroad they fail to calculate your earnings properly from a foreign currency. Idiots.

But sorry, I know nothing of the student loans here in Sweden, since all my Swedes took them out about 7-10 years ago.
Go to the top of the page
+
Bender B Rodriquez
post 14.Feb.2012, 09:23 AM
Post #4
Joined: 25.Mar.2006

QUOTE (Puffin @ 13.Feb.2012, 11:44 PM) *
You pay a percentage of income

That is the old kind that was issued before 2001. The new type of loans have a fixed payment period, but your repayment may be reduced if you lack income. The yearly amount is not a function of your declared income though.
Go to the top of the page
+
Puffin
post 14.Feb.2012, 09:56 AM
Post #5
Location: Dalarna
Joined: 5.Apr.2006

QUOTE (Bender B Rodriquez @ 14.Feb.2012, 09:23 AM) *
That is the old kind that was issued before 2001. The new type of loans have a fixed payment period, but your repayment may be reduced if you lack income. The yearly amount is ... (show full quote)

Even with the new loans you don't need to pay more than 5% of income until you turn 49 years old - from CSNs website

QUOTE
Lån efter 30 juni 2001 (annuitetslån)Du kan ansöka om att få betala ett lägre årsbelopp med hänsyn till din inkomst.

Till och med det år du fyller 49 finns möjligheten att få ett årsbelopp som är fem procent av din inkomst

Of course they won't say no should you choose to pay more wink.gif
Go to the top of the page
+
Bender B Rodriquez
post 14.Feb.2012, 10:24 AM
Post #6
Joined: 25.Mar.2006

QUOTE (Puffin @ 14.Feb.2012, 10:56 AM) *
Even with the new loans you don't need to pay more than 5% of income until you turn 49 years old - from CSNs website. Of course they won't say no should you choose to pay more wink.gif

Yes, but you have to hand in a special application for that, and it only applies if your income is low. The default is to pay it within 25 years, not as percentage of your income. The default for the old loans was to pay 4% of your income.
Go to the top of the page
+
umers
post 15.Oct.2015, 09:14 PM
Post #7
Joined: 10.Oct.2014

I have been looking for an answer on this forum but couldn't find what i was looking for hence i am reviving an old thread that is a bit closer to what my question is.
On CSN website in the repayment option there is a option to look at what how your repayment schedule would look like and there is a option to select the interest rate from 0-4 %. What i want to inquire is that when i start repaying the loan will it be my choice to choose the interest rate? e.g can i choose 0% interest rate? of course i can understand that a lower interest rate should mean i will have to pay higher payments per year but what i want to inquire is that is it really possible to choose the interest rate?
Go to the top of the page
+

Reply to this topic
1 User(s) are reading this topic (1 Guests and 0 Anonymous Users)
0 Members: