Paying off part of my loan early?

PugLady_2

Hi,

I've temporarily hijacked my mums forum account to ask a few questions about student loans.

I'm in my first year of university and i have:
A student fee loan
A student maintenance loan
Student Grant.

I have been trying to only spend my student grant, as it is free money that i won't have to pay back, and so far this is working very well, and i havn't touched the first two installments of my maintence loan and won't be needing to. Would it be possible to pay back the first two installments of the maintenance loan now without affecting my student grant?

Thanx in advance for any advice

Amy

Lokolo

Did you post somewhere else earlier? Or on TSR?

I remember answering this question!

Yes you can but the whole amount won't be paid back fully because interest would have been added on, so you will owe an extra £100 or something.

Not sure if it effects further loans, shouldn't think it would though.

whitfreak

While you probably can, I'd just stick it somewhere its earning more than 2.5%. As once you've repaid it you can't get it back again. And you might find that things like house deposit, first couple of months rent etc might be a pain come the end of your third term. (at my uni most rents started in july so you've have to pay 2 months worth of rent before your first installment of loan/grant for your second year would arrive) Just saying that your unspent loan could make a useful emergancy fund.

If your confident of living just off your grant in your secound year then reduce or just not take out your maintance loan. Or you can and just lob it in a savings account earning more interest than your paying (if they exsist at this point), to make some free money.