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Student loans from 1998 - pay off or not?
Hi all,
I have an outstanding student loan of about £20,000 still left to pay. With my current salary, I pay £160 per month to pay it off. I was the first year that Tony Blair used as a'trial' to introduced loans instead of grants, etc, in 1998, so I beleive that I will have to pay this until I am 65 years old, rather than the 30 year limit that other people have. I graduated in 2003, but then did a PGCE which I completed in 2006. Having watched the programme on student loans, I am not sure whether I should pay mine off, as by my calculations, I will need approx 10 years to pay it off. I could ask to pay more per month, which would obviously decrease the repayment period, but I won't do so unless it will benefit me, obviously. Also, there is a chance I may have more children in the future, which would mean I may well earn under £25k for a few years.
I am not sure, therefore, whether it is worht paying slightly more, say £200 a month into my student loan (while saving for a house deposit, mortgage, etc) or not? Any advice, clarifications, etc would be very welcome!
I have an outstanding student loan of about £20,000 still left to pay. With my current salary, I pay £160 per month to pay it off. I was the first year that Tony Blair used as a'trial' to introduced loans instead of grants, etc, in 1998, so I beleive that I will have to pay this until I am 65 years old, rather than the 30 year limit that other people have. I graduated in 2003, but then did a PGCE which I completed in 2006. Having watched the programme on student loans, I am not sure whether I should pay mine off, as by my calculations, I will need approx 10 years to pay it off. I could ask to pay more per month, which would obviously decrease the repayment period, but I won't do so unless it will benefit me, obviously. Also, there is a chance I may have more children in the future, which would mean I may well earn under £25k for a few years.
I am not sure, therefore, whether it is worht paying slightly more, say £200 a month into my student loan (while saving for a house deposit, mortgage, etc) or not? Any advice, clarifications, etc would be very welcome!
0
Comments
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Don't pay any extra... Just leave it... and let whatever amount get taken from your salary.
Since your loan is pr 2012...its likely our interest ratews will be fairly cheaper than the current 6.1% been bantered around!365 Day 1p challenge - £371.49 / 667.95
Emergency Fund £1000 / £1000 ( will enlarge once debts are cleared)
DFW - £TBC0
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