Student Loan Options - 7 years left

becky701

Hi,
I get £100 taken from my pay each month for my student loan, I feel like I've been paying this for years but still have 8.5K left to pay, so 7 years of this hanging over my head.

Are there any better options like getting a personal loan or something or a 0% interest card to pay it off?

I have this and a £3K credit card at 0% interest.

I really need the best solution to pay these off. Currently I pay £100 off each a month

Help!

ViolaLass

How would moving it to another loan stop it hanging over your head?

SeduLOUs

It'll be hanging over your head even more by moving it, as the risk is what happens if you lose your job or your income drops for whatever reason and you start struggling to repay. Student loan is income based - no job, no payments to make.

becky701

It wouldn't but is there an option to pay less per months? It's quite a big chunk for 7 years of my salary

Thanks

[Deleted User]

Paying less a month would meaning it hanging over your head for even longer.

You need to decide if you want to pay it off or keep it for longer.

becky701

I think less per month is the best option for me right now, but I didn't think it was possible as they take the % of your salary

[Deleted User]

You would need to refinance it if you want to pay less. But accept the risks that come with that.

yoshiyella

Doesn't the student loan come out of your wage before taxes are applied? If so then you are saving money there as well.

Nub

Student finance is calculated against gross pay, and comes off with tax/NI.

7 years is a long time to pay it, and with the interest they add it will likely be even longer, but don't transfer it anywhere. If you're struggling to pay £100/month, you don't want a credit card, loan or anything similar. With a student loan you'll never be chased for more than that % of your salary, and you stop paying it below a threshold. If you leave the country/stop earning/go on maternity leave/go back to school etc. you will stop paying it, and the number of people who end up never repaying it in full is shocking.

It looks better on a mortgage application and can't affect your credit file.

You may be able to get a better rate elsewhere, but you lose all of the above benefits and can't go back.

SeduLOUs

yoshiyella wrote: »

Doesn't the student loan come out of your wage before taxes are applied? If so then you are saving money there as well.

I wish. Unfortunately no, there's no tax relief on student loan repayments.

NineDeuce

Double check with the SLC that the accounts stack up. Although it may little affect things, I received my annual statement from one year and the amount shown as paid did not match the amount on my pay slip.