Student loan paid off

CLAPTON

the 4.8% rate, if it is confirmed only takes effect from september 2008

[Deleted User]

CLAPTON wrote: »

the 4.8% rate, if it is confirmed only takes effect from september 2008

What I meant was the RPI index is at 4.8% at this very minute and it will always effect teh student loan it simply gets delayed by 1 year, so this years average will be next years student loan rate. Interest rates are going to be rocketting for the next 2 or three years this will have a major impact on the student loan, it may well remain the cheapest form of borrowing though. Depends on your situation though. If your never likely to borrow again then paying it off would probably be better then a basic rate savings account at teh moment.

bmouthboyo

Why bother paying off you SL so early? the payments are so minimal i really dont care about mine, youd be stupid to splash out 13 grand paying it off, you might aswell get property and the inflation on the home will earn you a nice lil nest egg.
Student loans are not ment to be money makers for the government they are designed to help encourage people to get higher education.

CrispyUK

I'd look at moving your 13k of savings if you're only just making more than the interest you're paying on the loan - check the Banking & Saving section of MSE and look at moving them to ICICI or Alliance & Leicester for 6.05% / 6.1% (depending on whether you dip into it often will affect which one to choose).

You've worked hard to stash those savings up so make them work for you! Don't leave them sitting in a poor paying account

kr15snw

When was Martin was on Radio 1 this week he said if you have a large sum of cash, dont pay your loans back! Use the cash as a deposit for a house / buy a car (well that kind of thing!).

If I was you I would keep the 13k and then stay at home and save, save, save! Once you have enough for a deposit then go! I personally think renting is like burning your money, so I would rather get a mortgage than rent.