Guide discussion: Should I repay my post-2012 student loan?

Farmer_Johnson

Ah, Peter, it’s always amusing when people who achieved far less than me professionally try to give advice like this.

People from all over the world are still flicking to work in London because it still has far better opportunities for them than nearly anywhere else on Earth.

You come across like a regional manager in a retail bank. There’s nothing wrong with that, it probably got you a nice house and a company car, but you need to think bigger, and not be limited by your own horizons.

May I ask, you write like you attended a second-tier redbrick, would that be right?

silvercar

Tis the season of goodwill, can we try to post with respect please? Some comments come over as very aggresive/ mean.

MummyRivett

Hello All,
I'm wanting to pay off my plan 2 student loan, I know what Martin has said about it, but I was a mature student and the final amount that I took for for the whole degree was only £12,260. The repayments start in April I am mid to high salary bracket. I've done the calculations and if I left it, it would take 11 years to pay back with quite a bit of interest.

I think my circumstances may be different and I feel I should make overpayments over the next 18 months and save paying back over 11 years with interest?

I would appreciate your thoughts

Ed-1

MummyRivett wrote: »

Hello All,
I'm wanting to pay off my plan 2 student loan, I know what Martin has said about it, but I was a mature student and the final amount that I took for for the whole degree was only £12,260. The repayments start in April I am mid to high salary bracket. I've done the calculations and if I left it, it would take 11 years to pay back with quite a bit of interest.

I think my circumstances may be different and I feel I should make overpayments over the next 18 months and save paying back over 11 years with interest?

I would appreciate your thoughts

Personally I'd wait and see what comes out of the review of the system early next year. There's a high chance the interest rate will be cut.

MummyRivett

Thank you for your response, I had no idea that this was the case. I’m going to do some research on it.

hopelessr

Just quickly on something Martin said:

"- Earn under £25,000: Interest rate = RPI
- Earn over £45,000: Interest rate = RPI + 3%
- Earn from £25,000 to £45,000: It rises gradually from RPI to RPI + 3%. For example, earn midway, so £35,000, and your rate'll be RPI + 1.5%"

I'm on the highest interest rate of 6.3% but don't earn close to the £45,000 mark. Can this interest rate be changed if I ring up and question it or will I just be wasting my time sitting on hold?

Ed-1

hopelessr wrote: »

Just quickly on something Martin said:

"- Earn under £25,000: Interest rate = RPI
- Earn over £45,000: Interest rate = RPI + 3%
- Earn from £25,000 to £45,000: It rises gradually from RPI to RPI + 3%. For example, earn midway, so £35,000, and your rate'll be RPI + 1.5%"

I'm on the highest interest rate of 6.3% but don't earn close to the £45,000 mark. Can this interest rate be changed if I ring up and question it or will I just be wasting my time sitting on hold?

The maximum RPI+3% applies until 5th April after leaving the course. A penalty interest rate of RPI+3% also applies if you don't respond to their requests for information. Either of these apply to you?

chippy1001

An interesting discussion
I was wanting some help to confim im correct
Ive decided im going to pay off my student loan
My loan is £6300
I earn 34k a year.
Im 25
So as ill be paying RPI plus roughly 1.5% interest (4.5%)
I will pay my student loan off eventually
It would be beneficial to pay it off now??

Would i be correct???

FTC

Hello,

Do these rules still apply to EU students commencing 2020?

Thank you.

Filipa.

Rich168

The House of Lords found that the current interest rate structure applied to student loans should be reviewed. See:

moneysavingexpert.com/news/2018/06/drop-student-loan-interest-rate-to-15-says-group-of-lords/

but this is not even mentioned in the possible subjects for the "Pick key issues for PM candidates" poll. Charging interest at 3% over RPI while the student is studying is "legalised" Usury.