Student Loan Debt

Sweet_Pea_2

Hi Marie,

For what its worth I agree with Katsu, if you are married you are there to support one another, it's part of being married! My OH and I have always had joint accounts and share everything despite the fact he earns more than me, he always has, but I am part time now anyway. Luckily we have similar attitudes to money so it has never, so far, caused any marital strife.

My DD's are coming up to the time when they will be moving onto higher education, I know nothing about student loans as did not go to uni myself. I have been told the increase in fees should not put anyone off going to uni, but I hate the idea of them starting off in life with huge debt, even if it's a "different" type of debt. The thing that worries me is if the student loan company/government are able to to change the terms of the repayment, and suddenly decide to try and claw back some money by lowering the amount that you need to be earning or something, and in turn if that could affect any mortgage applications etc they were to make in the future.

jennikitten

Sweet_Pea wrote: »

The thing that worries me is if the student loan company/government are able to to change the terms of the repayment

I don't if legally they can, but they never actually have. Hence why the OP is on the old rates of repayment. They actually change the variables (when to pay back, when it gets cancelled etc.) every few years, but it hasn't ever affected the previous generation as far as I know. For example, my boyfriend graduated 2 years after me, and his loan gets cancelled at 45, whereas mine gets cancelled at 65.

To the OP - if it makes you feel any better, I graduated three years ago and my loan is currently around the £12,000 mark even after three years of repayments, so consider yourself lucky!

Zoology_Dragon

Definitely don't worry about paying off student loans. I currently have £16k owed on mine as I did a four year undergraduate degree starting in 1998 and have only been paying back my loans for a couple of years now as I also did a masters and PhD so the interest was just piling up all those years. It annoys me, especially as my husbands will be paid off very soon as he started uni the year before me so had minimal loans and a grant. Oh well! Such is life, it's much worse for those going through uni now.

Anyway, back to the point, it's much better to pay off your mortgage before putting any extra money to your student loan.

Nanny.Ogg_3

In my opinion a student loan shouldn't really be called a loan at all.

This is because:
- You don't get in trouble if you don't pay it all back within the allotted time.
- Its run by the government.
- Any money you do pay comes straight out of your earnings.
- There is a reason you have to earn enough to pay it back.
- The debt is written off without consequence after 25 years or age 65.
- The bailiffs wont come round, it has no implication on your abilities to get loans or mortgages, I don't think it shows up on credit searches, but I may be wrong on that.

I have £6k of student loans from 1 failed year of uni in 2006 (damn top up fees). I have yet to pay a penny of that back, and I have no idea what I owe. It doesn't come out of my pay because I don't earn enough (after deductions - I'm self employed). It has absolutely no bearing on my life. I fully intend never to pay it back if I can get away with it.

I consider it more of a tax style deduction than a loan to be honest. Personally, I totally ignore it and pretend it doesn't exist until you earn over the threshold. Overpaying a student loan whilst you are under the threshold of earnings gives you no long term benefits whatsoever - if you pay it off, you'll never be able to borrow it again at that rate, if that makes sense? I say the money is chucked at your mortgage or savings account, and the loan paid back when you earn over the 16k limit.

I'd also be !!!!!slapping my other half if he opened my mail like that. That's obnoxious behaviour.

dreamdreamer

Yeah i'd be livid if my OH did that!! We don't have any finance secrets but I stil wouldn't touch his mail.

I graduated in 2005 with 12k of student loans. After 4 years of full time work it's down to 7k so it's going to take me ages to pay off but I'm not overpaying. If I want to overpay I'll do it on the mortgage!

jaffacakegal

Like other people have said, I wouldn't worry about the student loan being a debt. It is depressing to see that statement every year though and see it mounting up. I did three years at uni, but didn't graduate, and have only a £12k student loan to show for it. I left uni nearly 5 years ago, have worked in low paid jobs ever since, and have only just got a job which takes me over the £15k threshold. I now pay the pricely sum of.... £1 a month!!! Just seems like a waste of time IMHO! I personally can't wait for a time when I earn enough to be making some kind of dent in this loan, but until that time I have enough to pay for without trying to pay this off!