Withdrawing from university in the first term - repayment of tuition loan (25%)

queenv00

Hi
For various reasons I quit university in the first term.  I’d started the course late and felt I’d missed too much work to be able to catch up . I actually only attended 1 lecture before realising things weren’t going to work out.  Having withdrawn in the first term I am liable for 25% of the annual tuition fees - currently around £3000 which is increasing with interest set at 4.4%.  My dilemma is do I pay this off in full (I’d have to get a bank loan to do so) or do I let this debt run and wait until I’m earning over the £27500 threshold then pay the 9%/year?  SLC have put the fear of god in me having this loan and it’s causing me anxiety knowing it’s hanging over me.
Please could anyone advise what the best move would be… get a bank loan and just pay it off or wait years until I eventually earn over the £27K marker.  I’m only 18 and currently working part time in a low paid job.
Thanks in advance
V

DrEskimo

Do not get a bank loan to pay it off.

The interest will likely be higher, and you will be liable to pay it regardless of your income status.

If you want, you can set up a direct debit for the amount a loan would cost you, that way you can pay the balance down and save on interest, with the freedom to adjust if income drops.

MalMonroe

Not being rude but would you actually be able to get a loan?  

Here is a link to some helpful government info on what happens with your student finance when you leave a uni course.

https://www.gov.uk/student-finance-if-you-suspend-or-leave

There's also info about what can happen if you have to suspend for illness, or a serious personal reason -

https://www.gov.uk/student-finance-if-you-suspend-or-leave/getting-student-finance-while-you-suspend-your-studies

Plus, there's also an article from this site, updated by Martin last month. I'm not sure whether it's applicable to you but it's got some good info and you may find it helpful/useful.

https://www.moneysavingexpert.com/students/repay-post-2012-student-loan/

Finally, there's some more info here from UCAS -

https://www.ucas.com/finance/student-finance-england/suspending-or-withdrawing-your-full-time-studies

Good luck, whatever you decide to do   

queenv00

Thank you so much for your helpful advice. Really appreciate it .