Help needed re student loan interest, can you freeze it?

Miss-spent_2

Yes I agree. It was his choice to go to university (well mine really) and whats done is done. He is not earning anywhere near threshold at the moment but then doesn't have many outgoings. We have told him to just save as much as he can.

Ideally, whether its financially sound or not, I would like to see it paid off as soon as possible but would rather do it as a lump sum.

Thanks for help

PolishBigSpender

It is very financially unsound to pay it off as soon as possible.

You'll make more money saving the money in a high interest bank account than paying it off - though I'm sure others will be along soon to tell you the details.

Oldernotwiser

Miss-spent wrote: »

Ideally, whether its financially sound or not, I would like to see it paid off as soon as possible but would rather do it as a lump sum.

Not really your decision is it, though? His loan, his earnings, his choice. Apron strings should be thoroughly cut by this stage in life or what was the point in his going to university at all?

Miss-spent_2

Oldernotwiser wrote: »

Not really your decision is it, though? His loan, his earnings, his choice. Apron strings should be thoroughly cut by this stage in life or what was the point in his going to university at all?

Your so right Oldernotwiser, what would I do without your sage advice?

williham

Don't pay it off, there's no point. Any money you do have should be put into savings or pay off any other debts that actually have an advantage of paying.

DealCruncher

Miss-spent wrote: »

I Agree and this brings us right back to myoriginal point, interest is being added all the time which makes it seem as though the debts will never be paid off.

I think the key is to put this down to experience, apart from emmigration and staying under the current threshold of £15,000 there is little option.

The positives are that it is one of the cheapest loans you will ever get [in terms of interest] and you are under no pressure to repay immediately. Does you son live with you? If so, his ability to save and repay this amount should be a lot greater. Paying £100 a month would help put a big dent in the repayments.

Note though, that each time you pay it is put towards a pot of money which is saved up by the loans company, then is deducted from the total loan amount at the end of each financial year.

My advice, don't worry too much.. try to begin paying it off with some spare cash, but you are secure in that you won't have people knocking at your door. Even graduates earning good wages at the moment are only paying £50-60 per month.