Paying off Student Loan in full
Comments
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And personally I would be far happier knowing I had 15k in savings for any emergencies etc, than having £32 a month taken off my pay. But then were all different but it does seem silly to pay the loan off if you can be making a decent amount of money year on year. Just my opinion though :-)0
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patrickbateman wrote: »A good friend of mine told me recently that he paid his off early in 2010 (I think), and received a discount.
I am not sure if this is still possible, but if it is then perhaps worth it.
Even if that isnt the case, it is a psychological lift not having the debt. I wish I didnt have to pay mine every month.
I believe the Welsh do. Although that is what my colleague tells me... and a another thread on this forum
http://forums.moneysavingexpert.com/showthread.php?t=35062570 -
miketaff1408 wrote: »Is the student loan taken into account with regards to credit rating or mortgage applications?
No.
When I took my student loan out, they told me that it is not taken into account on your credit history / report and therefore has no bearing on application for a mortgage etc. And when I have received copies of my credit report for various reasons, there is no mention of it on there.
:beer:Kitchen Debt - 2820/260Save £12k in 2013 #060: 1293.24/3000MFW: 88760.00/85000.00 (4.24% paid)0 -
It will be factored into some affordability checks for mortgages.0
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Of course there is also the possibility that she will NEVER have too pay it off. Depending on when it was taken out, there will be an age/time period when they will write off the outstanding balance. Just imagine that you have a couple of kids, you get great job, and together you decide that she will be a stay at home mum. She'll never earn enough to pay it off!
My thinking is that until the rate charged starts costing you a lot of money, keep the cash!Unless it is damaged or discontinued - ignore any discount of over 25%0 -
The returns may be measly in a savings account, but remember you may just end up borrowing the £15k again at a much more expensive interest rate in a few years if you buy a house or car. If you already have a mortgage then I would throw the £15k at that. That way you are effectively earing your mortgage interest rate tax-free, much better than 1.5%.
Additionally, student loans get cancelled after 25 or 30 years (depending when you got them) so it's possible this would happen before she paid it off and you'd be wasting your money.0
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