please help... student loan since 2008

LJB14

I started university in 2008, took out a student loan and graduated in 2011.

I was going to pay off the lump sum of approx £23,000 however after looking of this website am unsure if that is the best idea.

I will be earning approx £26,000 a year so not sure the best course of action as there is so much info on here.

Could someone please advise and also confirm whether the 25years is from the end of your first year or when you graduate. I feel like I'm going round in circles

Thank you.

Ed-1

LJB14 wrote: »

I started university in 2008, took out a student loan and graduated in 2011.

I was going to pay off the lump sum of approx £23,000 however after looking of this website am unsure if that is the best idea.

I will be earning approx £26,000 a year so not sure the best course of action as there is so much info on here.

Could someone please advise and also confirm whether the 25years is from the end of your first year or when you graduate. I feel like I'm going round in circles

Thank you.

With pre-2012 loans, in almost all cases it's best not to make any repayments that you're not required to make, for the simple reason that the interest rate is never going to be more than inflation (RPI) and for the time being is actually below it at 1.5% so the loan is actually losing value as time goes on. The 2nd reason is if it's not paid off after 25 years from the 6th April after you graduated (i.e. the date you first became liable to repay it providing you earn over the annual threshold) it's wiped.

CharlieBilly

andreasssss spam: merchant reported

Masomnia

You can earn more in interest on savings than the loan is costing you, so it's a no brainer not to pay off the loan but save the money instead.