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Student loan overpayment [2008 start]
Financially_Backwards
Posts: 38 Forumite
in Loans
Hi,
I started university in 2008 and have a student loan outstanding of around £20k. I currently earn £42k including a bonus of £5k which I usually get in it's entirety. I can reasonably expect this to raise to £50k within 5 years.
I've watched the recent Martin Lewis show episode on student loans and I understand the principals of overpaying - if you're going to pay off the whole debt PLUS interest then it makes sense to overpay it so you pay back less in total.
Is there a calculator somewhere that I can use to work out how much I'm likely to repay? Most of what I see is for post 2012 starters. What interest rate and thresholds apply for the older loans like mine?
Following up - if I should repay early, is there a smart way to do it? I have access to around 10k of interest free credit on 12-24month cards. I could theoretically pay SLC up front and then repay those cards interest free - at the risk that losing my income wouldn't effect the amount I need to be repaying. I could extend the interest free duration via balance transfers, and have paid off far less far quicker!
Thoughts?
I started university in 2008 and have a student loan outstanding of around £20k. I currently earn £42k including a bonus of £5k which I usually get in it's entirety. I can reasonably expect this to raise to £50k within 5 years.
I've watched the recent Martin Lewis show episode on student loans and I understand the principals of overpaying - if you're going to pay off the whole debt PLUS interest then it makes sense to overpay it so you pay back less in total.
Is there a calculator somewhere that I can use to work out how much I'm likely to repay? Most of what I see is for post 2012 starters. What interest rate and thresholds apply for the older loans like mine?
Following up - if I should repay early, is there a smart way to do it? I have access to around 10k of interest free credit on 12-24month cards. I could theoretically pay SLC up front and then repay those cards interest free - at the risk that losing my income wouldn't effect the amount I need to be repaying. I could extend the interest free duration via balance transfers, and have paid off far less far quicker!
Thoughts?
0
Comments
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kind of similar to me this is0
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365 Day 1p challenge - £371.49 / 667.95
Emergency Fund £1000 / £1000 ( will enlarge once debts are cleared)
DFW - £TBC0
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