Should I Pay Off My Student Loan? 2008/09 article discussion

master811

sly_dog_jonah wrote: »

Are you referring to repayments made on pre-1998 loans? Most of the above debate relates to PAYE payments made automatically to repay post-1998 loans. These payments are not 'extra'. Any additional voluntary payments are arranged directly with SLC via debti or credit card, and have to be paid out of your net income.

No, I was referring to post-1998 loans. I always thought that additional voluntary payments would come off before tax (i.e. at the same time as the mandatory payments), but it seems that isn't the case.

laurieharrison

Hi,
I don't know if anyone can help me...
I have a student loan of £10,000+ (which I haven't yet started paying off as I haven't crossed the earnings threshold, until now!) and have moved to the Isle of Man.
From what my employer says, they don't do the automatic payroll collection of SLC payments that is done in the UK.
This must then mean that the Isle of Man is classed as overseas by the SLC. However, on their overseas website, the Isle of Man isn't one of the countries listed.
Does anyone else have a similar experience and know whether I need to tell SLC that I've moved?

Thanks

Poolie

Hi Laurie

Isle Of Man is technically classed as overseas because you do not pay UK income tax. Isle Of Man has its own tax system. You should contact SLC to advise that you are overseas. They will send you the required paperwork. You will need to send either a copy of your last 3 payslips or copy of a contract.

They will then work out if any repayments are due and will write to you to advise.

sam132

Hey!

I enjoyed reading the artical about the benefits of not paying of student debt. However I have an unusual situation:

I spent two years at uni, borrowing both the maintence and tution fee loan (I was the first year to have to pay top up fees)

I then went on placement, I took out a student loan (albet it was less as I was on placement) - as I took my placement a year abroad and my pay was bad, so I needed it at the start.

Now, I am finishing my placement in 8 weeks, but my pay has risen, and thus I have the last two payments of my student loan sitting in what I thought was a high interest account (its not turned out it had withdraw penalties).

So my question is should I:

A) Pay the last two payments off?


Place it in an high interest ISA?


C) Keep it and not take out a loan next year? (When I return to study for my final year).

:j

Many thanks, basically I want to reduce my student loan, but unsure whether paying this chunk off is worth it. Compared to banking it.

Thanks!

Sam

Oldernotwiser

I'd give some thought to your plans when you finish university. Will you need to buy suits, pay a deposit for a flat, buy a car or have any other expense to ease your transition into the working world? You may be kicking yourself next year if you pay off any money now.

Lokolo

of course.

Chris2685

Lokolo wrote: »

of course.

What he said.

jakeh_3

Hi All,
There is a lot of knowledge and experience on here so I hope someone can help me.

Where can I find the details of how the interest calculation works?

Specifically I want to know if it is compounded or simply accrued. As everyone points out that it matches inflation, that would indicate it is not compounded but I would like confirmation.

Thanks

Lokolo

jakeh wrote: »

Hi All,
There is a lot of knowledge and experience on here so I hope someone can help me.

Where can I find the details of how the interest calculation works?

Specifically I want to know if it is compounded or simply accrued. As everyone points out that it matches inflation, that would indicate it is not compounded but I would like confirmation.

Thanks

It is compounded monthly. As it shows on your statements.

jakeh_3

Thanks Lokolo.
As a parent I do not see statements. I could get them from my kids but thought the info would be accessible to the public but apparently not - or at least not that I could find.
I was hoping for a link to an official site where the calculation would be set out.