Pay Student Loan or Mortgage overpayment?

IAMIAM

I disagree with most on here. I had a student loan plan 2 balance of 9k and the rate was/is 7% for a while (always the highest). Salary circa 50k. I would have eventually paid it off anyway....but when you stop working, move abroad etc, the interest just racks up. So I would have effectively been paying an extra £175 per month from my salary for life.....no thanks....would rather have as much money as I can every month. 

kaMelo

IAMIAM said:

I disagree with most on here. I had a student loan plan 2 balance of 9k and the rate was/is 7% for a while (always the highest). Salary circa 50k. I would have eventually paid it off anyway....but when you stop working, move abroad etc, the interest just racks up. So I would have effectively been paying an extra £175 per month from my salary for life.....no thanks....would rather have as much money as I can every month. 

Your situation is not the OP's situation, whilst there are some base assumptions about what is best there is no one size fits all answer and any decision on what it best is always based upon personal circumstances

Also working abroad doesn't stop your student loan payments for plan 2 loans, it just means you are responsible for making arrangements to pay based upon your earnings above the relevant earnings thresholds for the particular country you are working in.
https://www.gov.uk/government/publications/overseas-earnings-thresholds-for-plan-2-student-loans/overseas-earnings-thresholds-for-plan-2-student-loans-2020-21

IAMIAM

kaMelo said:

IAMIAM said:

I disagree with most on here. I had a student loan plan 2 balance of 9k and the rate was/is 7% for a while (always the highest). Salary circa 50k. I would have eventually paid it off anyway....but when you stop working, move abroad etc, the interest just racks up. So I would have effectively been paying an extra £175 per month from my salary for life.....no thanks....would rather have as much money as I can every month. 

Your situation is not the OP's situation, whilst there are some base assumptions about what is best there is no one size fits all answer and any decision on what it best is always based upon personal circumstances

Also working abroad doesn't stop your student loan payments for plan 2 loans, it just means you are responsible for making arrangements to pay based upon your earnings above the relevant earnings thresholds for the particular country you are working in.
https://www.gov.uk/government/publications/overseas-earnings-thresholds-for-plan-2-student-loans/overseas-earnings-thresholds-for-plan-2-student-loans-2020-21

Who actually works abroad and rings Rishi Sunak and his treasury team to repay their student loan....

kaMelo

IAMIAM said:

kaMelo said:

IAMIAM said:

I disagree with most on here. I had a student loan plan 2 balance of 9k and the rate was/is 7% for a while (always the highest). Salary circa 50k. I would have eventually paid it off anyway....but when you stop working, move abroad etc, the interest just racks up. So I would have effectively been paying an extra £175 per month from my salary for life.....no thanks....would rather have as much money as I can every month. 

Your situation is not the OP's situation, whilst there are some base assumptions about what is best there is no one size fits all answer and any decision on what it best is always based upon personal circumstances

Also working abroad doesn't stop your student loan payments for plan 2 loans, it just means you are responsible for making arrangements to pay based upon your earnings above the relevant earnings thresholds for the particular country you are working in.
https://www.gov.uk/government/publications/overseas-earnings-thresholds-for-plan-2-student-loans/overseas-earnings-thresholds-for-plan-2-student-loans-2020-21

Who actually works abroad and rings Rishi Sunak and his treasury team to repay their student loan....

6.7 What happens if you travel or work overseas

If you don’t pay UK tax or you plan to leave the UK for more than 3 months at any point after you finish or leave your course (whether this is temporarily or because you will live in another country), you’ll make repayments directly to SLC. You must let SLC know before you leave the UK. If you don’t, they can charge penalties on your loan and where necessary, ask you to repay the full amount of loan plus interest and penalties in one lump sum.

If you have no plans to return to the UK then maybe, whilst hoping no reciprocal agreement is made between the UK and the country you reside.

If you do have plans to return to the UK however then the risk is always there. The loan is not subject to statute of limitations for one and penalties could range from a slap on the wrist right up to the loan being in default and never written off. The choice, as they say, is yours.

IAMIAM

Correct. Everyone loves paying their taxes and loans, including 22 year olds working abroad....

penners324

Ignore the student loan