Student loan

freebie_fairy

I have student debts of £6,000 which I am paying off at £255 a month. I have enough savings to pay off £6,000 but I have no income and I am likely to have to move into private accommodation soon and rely on my savings to pay for rent, bills, food etc... until I get a job. Should I hold off paying my debt until I have secure employment? I have put £1000 in the loan account before but the bank still drip fed the money off the loan in the monthly payments. When I have a full time job should I just pay the bank the full £6,000 and clear it?

AddieH

What sort of debt do you have? Loan from the Student Loans Company, credit cards, bank loan? If you could tell us a bit more it would really help.

pollyanna24

Do you have a old style of loan? Cos the type of loan I have is taken direct out my wages each month, so if you didn't have any income, you wouldn't pay any back.

freebie_fairy

I worked full time and self financed my degree (part time evening course). I took out my bank loan as a graduate to enable me to develop my career and take a year out of work to study full time. It was £10,000 and I have got it down to £6,000. I pay quarterly interest on it and the interest is dependent on the outstanding balance. I took it out in 2003.
Unfortunately due to family problems I have not been able to return to work. This situation has been resolved now and I am applying for full time work again. In the meantime however, I am contesting an eviction from my family home ( I am the last surviving family member) and if the worst happens I will have to use my personal savings to pay for private accommodation (£9,000 pa rent) at least until I find a high paid job! My intention was to pay the remainder of the loan off from my savings when I had an income but now with an unsure future I am holding off until I know what is going to happen.