Thoughts for Student Loan

rmcc89

I received my Annual Statement today from SLC (Student Loan Company). However, I'm unsure of to either do something about it or ignore it and forget about it.

I've only just realised from the statement that interest applies, and although now after being informed that the Interest is 1.5%, rate of inflation? - the thought of interest building up, annoys me.

My balance to date is "£1,877.71", my last maintenance loan payment was on 06/05/2011, where I graduated and on statement leaves 11 months interest varying between £2.27 and £2.36 per month. Although around £3 a month does seem like nothing.

The thing is though, I don't work, I am currently on DLA and Contributory ESA. And right now my conditions have deteriorated and I've been passed and in the process for Severely Visually Impaired certification (I.E. Blind Registration). Thus... I' ain't going to be getting mega bucks from employment any time soon. So this £3 a month --> £30+ a year --> £300 per 10 year interest is certainly may add up.

Any thoughts?

Regards,
RMC

mynameistallulah

Nothing to stop you making voluntary contributions ...

Edit: On other posts you say you have savings, why not just pay it off?

melancholly

since you won't have to pay back anything unless you earn over the threshold, the standard advice is not to pay back early. this isn't like any other form of debt. have a read of this article:
http://www.moneysavingexpert.com/students/student-loans-repay

Lokolo

To pay off a loan of 1.5% when you can earn 3%+ on the money is not very MSE. However, it is your choice.

ViolaLass

£36 a year is not going to accrue to any significant amount particularly quickly. I think you've got more pressing problems to worry about.

mynameistallulah

Lokolo wrote: »

To pay off a loan of 1.5% when you can earn 3%+ on the money is not very MSE. However, it is your choice.

I wholly agree, but the OP objects to paying the interest, and there is only one way to stop that interesting accruing ...