Student Loan growing

Dobbibill

It will be paid back through the tax system if/when he earns enough to meet the threshold for his particular loan plan.
He should be getting an annual statement.

Unless he is a high earner he may never pay it off in full.

Lots of info here https://www.moneysavingexpert.com/students/repay-post-2012-student-loan

mobileron

I understand only about 23% of people ever pay this off,its not treated as a loan. Check out what Martin says about it.

badmemory

Don't you have to declare it though when trying to take out a mortgage or loan. Which will of course reduce how much they will lend you. Saying it is not a loan is just semantics.

ViolaLass

badmemory wrote: »

Don't you have to declare it though when trying to take out a mortgage or loan. Which will of course reduce how much they will lend you. Saying it is not a loan is just semantics.

You have to declare how much you are currently repaying, which is not related to how much you owe.

BakingC

They will take it into account in affordability either they will ask for your salary (then take off an additional 9% for sl deductions). If they ask for take home pay then it will already be counted for in that. Its impact on affordability is in effect reducing your income rather then increasing your debt utilisation.

The size of the loan has no bearing on the repayments only the income drives that so again unless it is likely that it will be paid off before being written off in which case there is some benefit to overpaying (but that's for another thread with benefits of that vs e.g. investing / pension)