Repaying Student Loans 2009/10 guide discussion

Poolie

The same rules that MrsManda has posted above will apply to your loans if they are all the same time. Do you pay a direct debit to SLC? Is there any money taken via your salary?

Beverley

Poolie wrote: »

The same rules that MrsManda has posted above will apply to your loans if they are all the same time. Do you pay a direct debit to SLC? Is there any money taken via your salary?

I'm a single mum and although I do work, I'm on a low income so I don't pay anything - my loan has been deferred each year since graduation.

mahoney

Student loans make me feel sick. I started in 1998 and I have a massive loan despite paying in each month.
I'd strongly suggest to take as little as possible to any current students - not that they'd be reading this. Hard to put an old head on young shoulders.
Martin's stance seems generally seems generally not to pay it back, but even with 1.5% interest it's going to go up and make me feel iller .....though I guess I should be earning 4% on a savings account then paying the loan off and profiting. All this to get an education.

Poolie

Beverley wrote: »

I'm a single mum and although I do work, I'm on a low income so I don't pay anything - my loan has been deferred each year since graduation.

If you have been deferring then all your loans sound like they are pre-1998 so 4.4% interest

Oldernotwiser

mahoney wrote: »

Student loans make me feel sick. I started in 1998 and I have a massive loan despite paying in each month.
I'd strongly suggest to take as little as possible to any current students - not that they'd be reading this. Hard to put an old head on young shoulders.
Martin's stance seems generally seems generally not to pay it back, but even with 1.5% interest it's going to go up and make me feel iller .....though I guess I should be earning 4% on a savings account then paying the loan off and profiting. All this to get an education.

They are only going up by the rate of inflation, so not a real increase.

shroob

Hello all,

I am a recent graduate and very confused about what the best strategy is to repay my loans. I always hated the idea of loans and did my best to minimise the potential debt (lived at home, wisely spend money etc.) I have a debt of around £10k (all in tutition loans - no maintinance loans or other). I am planning to study for a P.G.C.E. in September 2011 (volunteer at local schools/part time job this year).

I am in the position that I have just enough saved up in my bank account to pay off the debt (literally just enough). This is from saving all Birthday/Christmas money from childhood.

I am wondering should I repay it all now and have the debt wiped off, or wait and let it repay off gradually when I get a job. I am just so confused, I hear people say don't pay it off, but a friend of the family did this and the interest built up to quite a bit.

Thanks for any advice.

mahoney

The interest is very low, but on such a large amount even low interest can result in quite an increase to the loan. Martin says not to pay it off. I guess it depends on what other payments you have (outside of student loans) - how much you can afford to pay it off without it encroaching on your lifestyle, and how much you can push the loan to the back of your mind.
I feel for you!

Oldernotwiser

shroob wrote: »

I am wondering should I repay it all now and have the debt wiped off, or wait and let it repay off gradually when I get a job. I am just so confused, I hear people say don't pay it off, but a friend of the family did this and the interest built up to quite a bit.

.

I certainly wouldn't pay this off now, when you don't have to. You might have expenses (clothes/trave/relocation) when you finish your PGCE and you could be very grateful that you had savings at that point.

Oldernotwiser

mahoney wrote: »

The interest is very low, but on such a large amount even low interest can result in quite an increase to the loan. Martin says not to pay it off. I guess it depends on what other payments you have (outside of student loans) - how much you can afford to pay it off without it encroaching on your lifestyle, and how much you can push the loan to the back of your mind.
I feel for you!

1.1% interest on a £10,000 loan is only £110.

booggerboy

I have a pre 98 loan and one from 2002, and have just started having to pay back both, as my salary now "exceeds both repayment thresholds" (i.e. is over 25K (ish))

Does anyone have any experience of how SLC handles this? I'm not sure I'll be able to afford repaying them both at the same time!

BB