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student loan
Legacy_user
Posts: 0 Newbie
in Loans
i graduated from uni last year with student loans totalling roughly £8000. I rent a house and don't get paid much so can only afford to save £50 a month. Does anyone have an opinion on whether i would be better using this £50 to clear my student loan a little bit faster or should i put it into a savings account as a start to saving a deposit for getting a mortgage? I would be grateful for any help on this subject
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Comments
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i think there is a similar question in the student money saving section
as for the answer I guess paying the loan off with the £50 is better in some respects as interest on £8k loan is going to outweigh any interest you make on the £50 a month
that said if you aim to buy somewhere in the next few years then maybe creating deposit is your best bet and just try and get the best interest rate on your money for now0 -
It depends what interest rate you are paying on your student loan. Is it from the student loans company? If it is interest rate will be low, just above inflation so virtually nothing. And you don't have to start paying it back until you are earning more.
I would use the £50 toward a home or even just in a savings account as it will earn more interest there.I'm married now! Yippee!0 -
By saving, you are also creating a reserve fund for emergencies.I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0 -
You will need a reserve fund if you want to pursue a better paid job. A new suit and haircut perhaps to impress future employers.
It is your career and hopefully it is going the way you hoped and you are enjoying the world of work.
Regards JB.0 -
just thought you might like to hear some comedy about student loans:
i graduated one year ago with a whopping £15,000 student loan debt after 4 years of study...last month one of my 3 part time jobs hit the 'pay it back mark'. I paid ...drum roll please...£1 off my loan. this month the interest is loads more than that.
sod the loan, save what you can, you cant stop it coming off your wages so just let it go like your tax and so on :P untill maybe one day you get a windfall and you can pay a big chunk off...0
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