We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Student loan
CharlesStuart
Posts: 7 Forumite
in Loans
My daughter has a modest student loan, approx £15000, which is far less than the ones generally referred to on MSE. She is currently earning £40000+ per year. Undoubtedly she will pay the loan off within the 30 year term.
Would she be better off taking out a bank loan at the current relatively low loan rate and pay it off within 3 - 5 years?
Would she be better off taking out a bank loan at the current relatively low loan rate and pay it off within 3 - 5 years?
0
Comments
-
If she's convinced she'll pay it back, then yes, refinancing at a lower rate/shorter period will save her money.
But should she suffer a pay drop or lose her job, she's be committed to paying it back. I wouldn't be changing it to a personal loan just at the moment.3 -
What plan is the student loan? If it's a plan 1 then absolutely not.
If it's a plan 2 then there could be savings on a reduce APR (assuming she gets accepted at the representative rate), but then as above, she would loose out on the benefits of only paying 9% above the earning threshold, and having it written off after 30yrs.
The personal loan will be a fixed amount that will need paying over the term regardless of a change in circumstances.1 -
She’s on post 2012 loan and a masters loan, does that change things?0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.1K Reduce Debt & Boost Income
- 455K Spending & Discounts
- 246.6K Work, Benefits & Business
- 602.9K Mortgages, Homes & Bills
- 178K Life & Family
- 260.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards