Student Loan Repayment

garfield1983

Good Afternoon

Well the review of my current bills, loans etc is well underway and I know exactly what I have left to pay on everything...

One thing I have realised though is I am currently paying circa £108 a month for my student loan (post 1998 student so income based) yet when I have just checked the balance I have just over £6200 outstanding on a £9000 loan (and I have been paying at least £76 a month for the past 5 years). The balance screen shows the current interest as 1.5 (not sure if this has changed over the years or if it is a fixed amount).

I am due to commence maternity leave in September with full pay until the end of the year then SMP and will be looking to return to work part time (3 days a week) so the payments I will be making will reduce significantly and I can't see an end to the loan.

What would you all advice for repayment - continue to pay monthly from my salary? Move the outstanding balance to a 0% credit card so that I can aim for an end goal with fixed payment amounts or is there another way?

Many thanks GF

lulu_92

I'm on the deal where you don't pay when you earn less than £15k pa, are you?

I graduated last year, got approx. £20k of debt and I've made 3 payments of about £70. I'm not actually bothered about it. If you don't pay it off, it doesn't actually matter as it will get paid off after a certain amount of time (35 years?)

You don't see that money as it's taken out of your gross pay so it's not like our going to miss it. I say take any money you've been using on any overpayments and enjoy your maternity leave and your new baby

CLAPTON

garfield1983 wrote: »

Good Afternoon

Well the review of my current bills, loans etc is well underway and I know exactly what I have left to pay on everything...

One thing I have realised though is I am currently paying circa £108 a month for my student loan (post 1998 student so income based) yet when I have just checked the balance I have just over £6200 outstanding on a £9000 loan (and I have been paying at least £76 a month for the past 5 years). The balance screen shows the current interest as 1.5 (not sure if this has changed over the years or if it is a fixed amount).

I am due to commence maternity leave in September with full pay until the end of the year then SMP and will be looking to return to work part time (3 days a week) so the payments I will be making will reduce significantly and I can't see an end to the loan.

What would you all advice for repayment - continue to pay monthly from my salary? Move the outstanding balance to a 0% credit card so that I can aim for an end goal with fixed payment amounts or is there another way?

Many thanks GF

pay the debts with the highest APR first

garfield1983

Thanks for your replies Lulu and Clapton.

Lulu - I earn over £15k and will do even when working 3 days a week (I have to commute for this salary, at least I know the student loan was worth it now I am earning) so unfortunately I will continue to pay when I return.

Clapton - Thanks for your advice, I am working on the higher APR first, I was thinking longer term in order to be DF by early 2018, all the loans bar one will be paid off in 2016 so was thinking if I can then move the outstanding Student Loan balance to a 24 month 0% interest CC in 2016 in line with my other loans finishing, wouldn't this be the better approach than making repayments from my salary for many years to come (apologies, I didn't explain that in my original post)

GF x

CLAPTON

garfield1983 wrote: »

Thanks for your replies Lulu and Clapton.

Lulu - I earn over £15k and will do even when working 3 days a week (I have to commute for this salary, at least I know the student loan was worth it now I am earning) so unfortunately I will continue to pay when I return.

Clapton - Thanks for your advice, I am working on the higher APR first, I was thinking longer term in order to be DF by early 2018, all the loans bar one will be paid off in 2016 so was thinking if I can then move the outstanding Student Loan balance to a 24 month 0% interest CC in 2016 in line with my other loans finishing, wouldn't this be the better approach than making repayments from my salary for many years to come (apologies, I didn't explain that in my original post)

GF x

I'ld wait until nearer the time and see what interest rates are doing etc.