Student Loan Challenge

zag2me

Ms_Piggy wrote:

Now you see I'm not paying any more than the minimum on the grounds that I earn more interest on my savings than I'm paying on the load IYSWIM?

Do you really earn more interest though?

Remember if it is outside an ISA then you are taxed on the interest in a savings account.

For example I have filled my ISA's which are earning a nice 5.3% which is all well and good. But also have money in a normal savings account which also earns 5%+ but is taxed at 20-30% so in reality the interest rate is much less.

The student loan is a very cheap way to get credit, but its still a loan and it still accrues interest for every day you have it.

I would be interested in some more accurate examples, maybe I have missed something.

zag2me

C1aire wrote:

I graduated in 2005 and my debt is still H_U_G_E! What's worse, my income is so low that I only contribute £2 a month - pathetic! I can see my way out of the other debts (eg - CC, OD), but at this rate my grandchildren will have to finish it off for me!

I admit it is something that I just don't tend to think about, but when I do, I could cry. Any chance of an SL-Free Wannabe board? I read the other DFW posts as I find them really helpful and supportive, but the thought of my SL gives me palpitations, even though it is 'good' (I use the term loosely) debt.

Don't worry about that feeling, I felt exactly the same after taking out 4 years of loans and spending it on partying and drinking. After 4+ years of paying it off the repayments hardly even effected me and it was gone before I knew it. Best thing was when I went to get a mortgage they didn't take it into account.

But then again I'm on my last payment today and I would say that

slowlyfading

Well done for getting it paid off! I'm a second year student at the moment, and it kinda bothers me how much I'll owe when I finish. Should I start saving a little bit here and there and pay some of it off straight away when I graduate? I'm not sure how it works and what to do really
Nicola x

C1aire

I have to say, I'm jealous of you zag2me. It's just horrible having something that accrues interest at about £30 a month and not being able to pay it because I have to prioritise other, more expensive debts. I have been working on a bit of damage limitation though, and have started to claim my bank charges back and use a bike rather than the tube. Maybe I should put what I would otherwise spend on travel into the SL pot?

seaweasel

It is an achievement, but I don't really see what the fuss is about. Yes, of course I owe SLC this money but I won't start earning enough to pay it back until I get a proper job (within the next few months hopefully), and then I have other priorities, e.g. paying off my credit cards and over drafts, moving banks, and then saving for our wedding and buying/building a house. Yes it would be nice to be completely debt free, however I see a difference between being completely debt free (which given that I'll hopefully own a home at some point is unlikely), and functionally debt free. The latter to me would mean having my credit cards and overdrafts paid off so I can get into the black and start putting money aside, the former is great in an ideal world but I don't see it as being particularly practical or useful.

zag2me

Just rang them up to pay my final payment, and they are messing me around

Keeps on being engaged. Grrr.

zag2me

Finally got through, and payed off my last £550 installment.

I am now DEBT FREE! wow that felt good to write.

slowlyfading

well done!!!

pollyanna24

Hmm, I got my student loan and quite uni after two days. Took the money (and the next two instalments) and blew it.

Not completely, £1,000 went into a savings account and became the basis for the deposit on our first house. We bought (2003) and sold the house (2005) and made £20K, so I suppose I can't really complain about the student loan!

I've worked out (not precisely) that it will be paid off in October of this year. Now while it was annoying when they started taking it out, I've kinda come used to the money not being there as they take it out of your wages and all, but come this October, it sure will be nice to have £104 extra in the bank account.

How do I go about making the last payment? Got a feeling they are just going to keep on taking it unless I tell them to stop! When I ring up, they always tell me they can't give me a precise figure, so how do they know when to stop taking the money?

zag2me

You simply ring up and ask to pay off the last payment, they can do it via debit card. They should also always be able to tell you your balance over the phone.

Otherwise they will take it out via direct debit on the date as always.

They then send you a letter to confirm the payment and the end of your commitment to them. I think I'm going to frame it

Its such a good feeling, the girl on the phone said she loved these calls when people finish payments as the people where always so happy.