Pay off student loan early???

pecunianonolet

Hi,

My partner still has a student loan (Scotland) and is paying back monthly as per usual process. However, they charge quite a bit of interest on the loan, used to be 4.5% but now I think they said it went up to 5%.

Our idea was now to pay off in full so instead of having to make monthly contributions the money can go into savings and earn us interest while the rates are high. The idea was to pay by credit card and balance transfer to a 0% interest card. That way we don't pay interest for the repayment to the government, pay no interest for the repayments to the cc and instead generate interst into our pockets with the additional disposable income.

The issue is now that, to my surprise, the stundet loan provider doesn't accept credit card paymnets as we just found out when we called. My parner doesn't have any fee free money transfer offers on any of the cc available, which we could use to circumvent this. I do have fee free money transfer options but have only some space left on a 1% fee balance transfer card but it would mean I essentiall would take on the dead, which would be an option but one we try to avoid.

We share everything else so I could take on the dead and pay the 1% transfer fee but we would prefer to keep things seperate if at all possible, also for credit rating purposes of utilised cc dead as I have quite a bit on for stoozing already. We also could pay off in one go with savings but that would defeat the purpose of what we actually want to achieve.

Any recommendations or advice?

MSE_ForumTeam5

We've moved this thread to the Student MoneySaving board.

silvercar

I’m to an expert on this, but I thought there was a card called curve that you could use for stuff like this.