Do I pay my refunded rent back to the SLC or keep it?

Many students, including me, have been released from paying third term rent.  Do I pay back the £2000 that I'd normally pay to uni or do I keep it?  On the one hand I can pay it off and that £2000 will not gather interest but on the other I'm not sure how much difference it will make to how much I'll repay once I graduate.  Any thoughts?

Comments

  • fred246
    fred246 Posts: 3,620
    First Anniversary Name Dropper First Post
    Forumite
    Assuming you have borrowed £9250 a year tuition fees then you have borrowed a lot of money anyway. You would need a very well paid job for years to ever pay it off. I sat down with my children and we agreed that they would borrow the maximum. It is unlikely you will ever pay it off. I think Martin Lewis reckons 83% won't pay it off. If you have a very large salary for many years you will be very happy and won't miss the payments too much. If you have time off for travelling or childcare commitments your loan just keeps getting bigger and bigger. I worked out that one of my student children would have to earn £58K a year just to keep up with interest payments.
  • I think I'm coming to the decision that I should pay it back.  The money would never have been mine anyway and I don't need it.
  • fred246
    fred246 Posts: 3,620
    First Anniversary Name Dropper First Post
    Forumite
    edited 23 April 2020 at 10:34AM
    How much will you have borrowed when you finish? Most students will have borrowed at least £14k a year. You have to have very high earnings year after year to pay it back. For some people it's a matter of maths while for others there are moral arguments. For me the interest rate is immoral so questions of morality go out of the window and I do what is best for us.
    You are better off reading 
    https://www.moneysavingexpert.com/students/repay-post-2012-student-loan/

  • Masomnia
    Masomnia Posts: 19,506
    Name Dropper First Post First Anniversary
    Forumite
    You don't know what economy you're going to graduate into. I'd keep it.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
Meet your Ambassadors

Categories

  • All Categories
  • 341.6K Banking & Borrowing
  • 249.6K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.7K Work, Benefits & Business
  • 605.8K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards