Student Loans: "Should I pay mine off?" article Discussion Area

Former_MSE_Natasha

This thread is specifically to discuss the content of the

Student Loans: "Should I pay mine off?" article

To discuss or ask a question about the article: click reply

JenIttels

Just wanted to say thanks to Martin for the article. I've been wondering about paying off the student loan vs over paying on the mortgage and I feel much more comfortable with my decision now I've read the article.

muddyfox470

Thank you

Very helpful article.

Ian

(PS. Loving the tash)

andyrules

Thanks for the no-nonsense explanation, Martin, very helpful and useful. Is there any info about loans taken out before 1998? There seems very little on the slc site. I defer mine every year and was told by them several times that one of my loans would expire when I reached the grand age of 50. However, on my 50th birthday I rang and was told the age is now 60. I have no relevant original paperwork. (it was all much quicker and simpler back then!) Thanks

Johny_Bravo_2

Very Helpful article :j

honest--jon

Exactly the question I was asking my self, Im going into my third year of uni and already have enough money to pay off my student loan for the whole of uni but am gona but it toward my first house in a years time instead.

delorean_2

Very useful and informative article there!

This has though risen up some concerns for me. I am moving to Canada next month and need to know what steps to take next as the article has risen some new issues for me.

I'm going to be moving around quite a lot in Canada and so will have periods of unemployment and a change of address quite frequently. Also how do I set up a direct debit when I will have no UK bank account? Do I need to wire money over to SLC? Send a cheque in CA$?

How about times of unemployment? Does the SLC earning threshold still apply for employment outside the UK?

Am a bit worried about this now as I hope it doesn't devour my earnings.

Anyone got any advice please on what to do now? Many thanks.

HPJon

I have just started my 4th year at uni and have taken loans out each year, but not spent them. I have put them in my oneaccount, an account that combines all your money (current account, savings, loans and mortgage) so they are therefore reducing my morgage.

If I then pay them off at the minimum rate if I earn enough next year, isn't this even better? My sister did something similar by just putting them in high interest accounts and made a few hundred pounds.

Just an idea if you can afford it


ps - it helps if you have a wife who can support you through uni!!!

sly_dog_jonah

I'm a 2003 graduate and got a job shortly after graduating. SLC sent a form in late 2003 for me to enter employers details etc so the Inland Revenue could send an instruction to my employer to deduct my repayments from my salary commencing April 2004. Although I returned the form promptly, that instruction has never been sent by the Inland Revenue.

I phoned up in April/May the following year to query this with SLC, and they explained I was 'stuck in the system'. They sent a letter saying much the same later that year. They invited me to make manual payments over the phone or via standing order, but I declined once I confirmed I had no obligation to do so. I also checked they wouldn't back-date the repayments once my salary deductions kicked in, or hike the interest rate.

It's no skin off my nose, its £75 odd more a month that I can save towards next year's mini Cash ISA contribution. :rotfl: Each month I check my payslip to see if the repayment has kicked in, and to see that it hasn't always softens the blow of seeing how much tax and NI has been deducted.

This month the interest rate for income contingent loans has gone down to 2.4% (effective 1st Sept). So I'm earning an extra 3.05% tax free in my A&L Cash ISA (at 5.45%) on every pound I'm holding onto instead of repaying early.

I guess the message is: Martin speaks wise words (as always).

diskbox

well i`m soon to be emigrating, having just graduated. i wont have a uk bank acocunt, and i have no address where im going. im basically leaving and travelling a certain country, while in possesion of a 3 year residency visa, which can move on to permanent. so basically im not planning on coming back here.

how can i inform them where i am going if i dont know myself.

mattsaze

What are the benefits though, if you don't have the full loan amount in an account earning interest. If I put repayment money (£73 a month) in an ISA will I make more than the loan is accruing?
Considering it is accruing interest at inflation on a loan of £2300 and I start paying £73/month into an account paying approx 5% from scratch?