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Student Loan Repayment Calculator

pjb007
pjb007 Posts: 160 Forumite
in Student MoneySaving
Does anyone know of a good method of working out how much and how often to re-pay part of a student loan.

The interest rate on my loan is 4.8% per annum. I have now noticed that the interst my bank is offering me has dropped below that to 4.45% gross p.a. (it was 5.something a not that long ago)

So I guess I need to start re-paying as its not gaining me any further interest.

I am with the Halifax and have their websaver account. I also have an Icesave ISA but thats farily new.

Comments

  • roxalana
    roxalana Posts: 631 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    From reading Martin's article I think the advice is that whilst you are earning a higher % of interest on your savings than you are paying on your student loan, you are best off NOT overpaying your student loan (unless you wish to do so for piece of mind).

    But the interest rate your bank is offering is now not the best. Why don't you put your savings in an account with a higher rate (see Martin's savings article - though I notice you say you do have Icesave) - that way you should be earning more % interest again.

    If you want to overpay for piece of mind then of course do so but I believe the above makes the most financial sense.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Student loan IR is going down to 3.4% (or around it) in September.
  • pjb007
    pjb007 Posts: 160 Forumite
    Lokolo wrote: »
    Student loan IR is going down to 3.4% (or around it) in September.

    Thanks, but do you have a source for this at all?
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Each septmeber the rate goes to the previous March RPI rate. Its 3.8%

    http://www.statistics.gov.uk/StatBase/tsdataset.asp?vlnk=229&More=N&All=Y
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