Repay.....Plan 2 Loans going to 7.5% APR from 1st March 2023?

IAMIAM
IAMIAM Posts: 1,185
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edited 16 January 2023 at 9:28AM in Student MoneySaving
Is this the case?

I have £10k left to pay and pay around £180 a month.

If I make a payment of 5k online this weekend, can I ring them on Monday and switch to Direct Debit or is £5k still too much left for me to switch to DD.

I am ultimately going to pay it off in the next 6-9 months with overpayments I feel....

Comments

  • DrEskimo
    DrEskimo Posts: 2,333
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    Should be fine. 

    Will take around 3months before it’s switched and you can set whatever monthly amount you like, as long as it’s above the amount you are paying via PAYE. 

    In your case, if you had £5k left and wanted it paid in 8months, you could pay £625 via direct debit. They would have no problem with this as it’s considerably over what you are paying via PAYE. 
  • MalMonroe
    MalMonroe Posts: 5,783
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    Hi, the information in the following link may be of interest (pun kind-of intended) to you -

    https://www.savethestudent.org/student-finance/student-loan-repayments.html#plan2

    Especially the information under "how is student loan interest calculated?"

    And don't forget that student loans don't affect your credit history. 

    As a mature student in 1998, I had Plan 1 funding but never managed to earn enough to pay anything towards my loan after graduating and then when I turned 65 it was written off. So now I'm old but didn't have to pay my loan. 

    Just something to think about - but you're obviously on a high salary if you're paying £180 pcm. 

    All the best, whatever you decide to do. 
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
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