Post grad.student loan - repay now or not?

Jill_Sunny

New to this sorry if in wrong place.
I will complete postgrad course in August'19 for which I took the PGL loan in the region of 10K (7K was the course fee), already have undergrad Plan 2 loan of ~48K .
i)Now I have 10K available (through family), and no card debts etc, should I clear the postgrad. loan with this money?
ii) Or is it just the 7K course fee that I could pay off, as I'm not sure in the remainder falls under Plan 2 loan?
My thinking is then I will just continue with the repayments for the Plan 2 loan (6% above the earning threshold set) and I won't have the PGL loan repayments ..as I understand having both leads to repaying at the 15% level (when and if I earn above the thresholds set)
Thanks

atush

At what % are the loans payable? nt the % you pay from salary.
What will your salary be by estimate? ie will you repay the loas or will you not pay in full?

Jill_Sunny

Plan 2 (48K) student loan is RPI +3% on anything you earn above 25,725 and the post grad loan is 6% when u earn above 21,000. Wiped out after 30yrs
I noted a thread where someone had 10K and paid it off their large student loan - but it actually made no difference to what you pay back under the current way student loans work...so to pay down just 10K (too small an amount) on Plan2 would not be the thing to do. As the PG loan is about 10K (7K course fees) - I wanted to know if its best to clear this ?
No salary estimate!! if Im lucky Ill start low and increase over time!

Albermarle

Suggest you read this:
https://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes/