We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Student Loan Repayment, which debt is paid first

jrh2254
jrh2254 Posts: 35 Forumite
edited 14 April 2013 at 1:13PM in Loans
My daughter has two income contingent loans. This is because she completed her degree under the old loan scheme where the interest rate was 1.5% and then started another course last Sept where the interest rate is 6.6%

So plan1 is at 1.5% with a balance of circa £21,000 and
plan 2 is at 6.6% with a balance of circa £7,000

I want to pay off the loan with an interest rate of 6.6% and leave the one with an interest rate of 1.5%

If I make a voluntary payment at the student loans repayment website which loan does it deduct the voluntary payment from? Its not very clear on the website.
Clearly I want to pay off the 6.6% interest rate loan first!

Many thanks.

John.

Comments

  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    Ring them up and find out, though it may well have to be your daughter that does this due to confidentiality rules, it's her finances after all.
  • If you do it online the payment is divided over the loans that are currently in repayment.

    If you call up you can request what loan the balance goes towards.

    Hope this helps
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.2K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.