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Coming to the end of my student loan, advice please...
dreamdreamer
Posts: 619 Forumite
I was at university from 2002-2005 and have a new style "income contingent" loan at 1.5% currently. My balance left is approximately £1500. I'm now pushing toward £15k in savings with another account due to mature at the end of January. I'm planning to pay my remaining balance off with some of it.
(Side note: Yes, I know it makes no financial sense when it could earn 3% interest in my 123 account, but it has less than a year to run now and if I pay the monthly amounts I would have been paying to SLC into my 123 instead I'll only be about £6 worse off over the year. For the emotional victory of paying my student loan off before my 30th I'm willing to pay that!)
SO, my question is - if I call the SLC and settle the loan there and then is that the end of it? Or will HMRC keep taking payments until they communicate and then rebate me? Also is there any early repayment charges? I've found a bit about switching to direct debit on the SLC website, would this be my best way of avoiding overpayment?
Thanks for any help, I'm finding the info very difficult to come by!
Dreamer x
(Side note: Yes, I know it makes no financial sense when it could earn 3% interest in my 123 account, but it has less than a year to run now and if I pay the monthly amounts I would have been paying to SLC into my 123 instead I'll only be about £6 worse off over the year. For the emotional victory of paying my student loan off before my 30th I'm willing to pay that!)
SO, my question is - if I call the SLC and settle the loan there and then is that the end of it? Or will HMRC keep taking payments until they communicate and then rebate me? Also is there any early repayment charges? I've found a bit about switching to direct debit on the SLC website, would this be my best way of avoiding overpayment?
Thanks for any help, I'm finding the info very difficult to come by!
Dreamer x
DEBT FREE 3rd Sept 2011 (Debts at highest £15.8k Nov '08)
Student Loan paid off July 2014
First Direct Regular Saver #2: £2700 ** Santander 123: £13,106
Car Insurance/Tax Fund: £305 ** Present Savings: £525 ** Disneyworld Fund £100
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