Student Loan Repayments

x_melanie_x

I'm in my first year of employment and have received my letter about repaying my loan. Any advice here? Should I pay back the minimum?xx

piratefairy

I've found with mine that the minimum payments for the student loan don't actually cover the interest charged each month, so try and make as many contributions as possible..

Sol00

Interest is frozen at 0% this year, so you don't need to worry until September about that.

It all depends on how you view the student loan. If you view it as a debt, then pay it off; if, however, you view it as a tax (I do), then just ignore it and let the small amounts come off each month.

Neilhmtn

You probably shouldn't make any extra contributions. See http://www.moneysavingexpert.com/loans/student-loans-repay and scroll down to where it says "No, No and No" in big letters if you don't want to read all the bumph.

eslick

martins article is good but it only depends on if you have other debts, if you have none then paying it off as soon as possible would be a good idea, do you really want to be paying it off for years to come. though if you have no debts but are saving for a house then would probably be worth doing that.

ThrowingStonesAtYou

It almost never makes sense to pay off more than you have to. At the moment the interest is 0%, so it doesn't make financial sense to pay it off. My advice would be to only make minimum payments.

vaporate

ThrowingStonesAtYou wrote: »

It almost never makes sense to pay off more than you have to. At the moment the interest is 0%, so it doesn't make financial sense to pay it off. My advice would be to only make minimum payments.

Exactly!

When they do charge 50 quid almost in charges per monthly, unless you are earning in excess of 23k a year, it still wouldnt be worth it.

Just pay the minimum and stay within the legal obligated contract rules and you're laughing. (i.e make sure they have your bank details, address and evidence of supporting one self) (unless you're earning savage amounts per annum)

piratefairy

Good points there, thanks, I doubt I'll make any more extra payments til the interest is thawed on it..That is the only debt I have, so to get rid would be good.