Card to pay off Student Loan?

Lokolo

When she has less than 23 months worth of payments left, SLC will set up a DD to take the rest. You can set this to X number of months. Although if she is abroad I suspect she is already paying by DD? If so, why doesn't she just phone them and ask to increase the DD? I am pretty sure she can also do this online.

Also RG2015s post is about the 2012+ loans. Given you said you have had this for 7 years, the loan will not be attracting the 6.1% that RG2015 states, but instead is at 1.5%, as it would be a 1998-2012 repayment loan, which has very good terms.

I paid mine off 2 years ago now and had the same query, but given the credit card surcharge (which I am surprised didn't happen for you, which it should), it wasn't worth it. I just set up a DD and paid the last 23 months off in 12 months.

gatters

Regarding the credit card surcharge, did it definitely reduce the balance owed by £100? Perhaps the fee is taken from the £100, not added to it. Just a guess.

RG2015

Chippy wrote: »

Thank you for your input- I too think it will be beneficial to pay it as she now owes less than £8000 so without any doubt will pay it off in full in less than 30 yrs! My savings are unlikely to earn the same amount of interest that will be paid if she carries on paying monthly. I will have a look at the Nationwide but I thought you have to have a current account with them and that is one of the few banks that I don't have an account with. :rotfl:

I forgot that the Nationwide card is for account holders only. However the Flexdirect pays 5% interest on balances up to £2,500 for 1 year. It also qualifies a holder for a 5% regular saver for up to £250 per month.

RG2015

Lokolo wrote: »

Also RG2015s post is about the 2012+ loans. Given you said you have had this for 7 years, the loan will not be attracting the 6.1% that RG2015 states, but instead is at 1.5%, as it would be a 1998-2012 repayment loan, which has very good terms.

I missed the 7 year bit and assumed the interest would be at a higher rate. If it is only accruing interest at 1.5% the cash may be better off in a high interest earning account.

My children both have student loans at 1.5% and I have advised them to treat this as a tax and not a loan.