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Student debt v. saving query...
Norton_Blade
Posts: 217 Forumite
Didn't know if this was more of a saving or a debt query... but you guys in here tend to be a bit less abrupt than the savings lot, so I come to you for advice for my quandary (I'm sure the mods will move me if they see fit) 
I know the advice normally around here is to defer paying off your student loan as it is a reasonably cheap debt and one which was a necessary evil for many people to go on to earn more money than non-graduates.
However, my circumstances are slightly different in that I went to University but left before completing my degree. So I have the loan but not the qualification in order to earn the expected increased salary.
I got quite a shock the other day when my statement came through and seeing the ~£24 a month they are adding on to my total owed.
Now, luckily, and through saving hard, I have enough money in savings to completely pay off this loan but I left it because I was earning more interest on the savings than accruing on the loan. But all my savings rates have nose-dived and the difference is now less marked.
The interest on the loan is going down to 3.8% and my savings are earning around the 4.5% mark, so while I am technically not losing money, I'm starting to think that I should just wipe the slate clean and become totally debt free before starting all over again with my saving up for a house. My student loan is the only debt I have and it rather feels like a millstone round my neck... I have savings but I don't really have savings because I owe that much.
Any advice appreciated from you lovely people
I know the advice normally around here is to defer paying off your student loan as it is a reasonably cheap debt and one which was a necessary evil for many people to go on to earn more money than non-graduates.
However, my circumstances are slightly different in that I went to University but left before completing my degree. So I have the loan but not the qualification in order to earn the expected increased salary.
I got quite a shock the other day when my statement came through and seeing the ~£24 a month they are adding on to my total owed.
Now, luckily, and through saving hard, I have enough money in savings to completely pay off this loan but I left it because I was earning more interest on the savings than accruing on the loan. But all my savings rates have nose-dived and the difference is now less marked.
The interest on the loan is going down to 3.8% and my savings are earning around the 4.5% mark, so while I am technically not losing money, I'm starting to think that I should just wipe the slate clean and become totally debt free before starting all over again with my saving up for a house. My student loan is the only debt I have and it rather feels like a millstone round my neck... I have savings but I don't really have savings because I owe that much.
Any advice appreciated from you lovely people
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