may as well just pay the minimum until I'm 65

Idiophreak

I hate my student loan. Having a chunk of your wages taken each month seemingly *forever* is just so demoralising. Fortunately I'm now earning enough it should be gone in around 10 years, but even so, if I had the chance to get rid of the thing, I wouldn't hesitate.

Out of interest, if you can't afford to save for a deposit, are you sure you'll be able to afford a house?

Lokolo

Don't forget, a lot of mortgages now won't take 100% which is what you really need when you are young and wanting to get on the market. Obviously you can rent for a few years and then take the 90% or whatever, but it is a lot easier instead to just buy the house straight away if you have the money, i.e. student loan.

I am going to do the same but mainly because mortgage rate will be around 5% I suspect (suspect) and the student loan is 4.8%, (going to 3.8%) so its worthwhile instead of taking out £10k on a mortgage, I take it from student loan and then that £10k is going to cost a bit less. But to be honest, it really matters on the state of the housing market when I graduate, otherwise its a nice savings account for my money.

becominganobsessivesaver

Personally I think paying the minimum amount back is best. I consider my repayments (if they ever get matched to my account!!!) to be tax rather than debt repayments. There isn't the same level of risk as if for any reason (sickness etc.) your income falls below the threshold then you have no liability to pay anything. For example i'm currently on maternity leave so don't have to make the payments, whereas with a conventional loan i would have to.

JammyP_2

Damn I wish I was one of those people who could have afforded to just take out a student loan to save it,

Seriously though OP, don't you hope to get a good career? I think once your earnings hit around £30k you may be able and want to pay off more than the minimum, espcially if your paying into a pension etc.

I loved uni debt so much I am going back for more, this time as a medical student (hopefully, fingers crossed for 2009 entry) the £3k I did manage to save while at uni (also from 1 year at work) will go to pay my first years fees as a medicine student.

JoeA81

Its funny how some people can never seem to get over the "debt" aspect of the student loan. Im sure everyone now understands that only ever paying the minimum repayments, and saving your spare cash in a high interest account is the logical thing to do. But for some reason, some people still want to pay their student loans off quicker than they have to. It must be some kind of ingrained feeling that "any debt is bad", which whizzes through their brain and over-rides the logic of paying it back as slowly as possible.

kr15snw

You 'think' youll be earning that much, doesnt work like that though!

Ive just qualified as a graphic designer and should be earning about 15k starting rate. Unfortunately every job Ive applied for wants experience, which I have a year of. But this isnt enough for them so Im stuck.

In the end Ive got a job BUT it only pays 12k a year. I will be starting at the very bottom and working my way up, which Im happy with

But dont assume youll all get good paying jobs!

melancholly

Lokolo wrote: »

Don't forget, a lot of mortgages now won't take 100% which is what you really need when you are young and wanting to get on the market. Obviously you can rent for a few years and then take the 90% or whatever, but it is a lot easier instead to just buy the house straight away if you have the money, i.e. student loan.

I am going to do the same but mainly because mortgage rate will be around 5% I suspect (suspect) and the student loan is 4.8%, (going to 3.8%) so its worthwhile instead of taking out £10k on a mortgage, I take it from student loan and then that £10k is going to cost a bit less. But to be honest, it really matters on the state of the housing market when I graduate, otherwise its a nice savings account for my money.

no no no

don't leave university and immediately jump on the housing ladder.... it's seriously not a wise plan to be that financially and physically tied up just at the point when your career gets going and flexibility is important. it is also a very recent thing to expect a 100% mortgage and it's clearly the worst possible way to buy a house. rent for a while - see what an area is like, wait til you have a deposit/pay rise. this modern obsession with getting a house as soon as anyone graduates is bizarre and one of the reasons why so many people are now mortgaged up to their eyeballs, unable to absorb the increase in repayments with interest rate rises.

moneymass

JoeA81 wrote: »

Its funny how some people can never seem to get over the "debt" aspect of the student loan. Im sure everyone now understands that only ever paying the minimum repayments, and saving your spare cash in a high interest account is the logical thing to do. But for some reason, some people still want to pay their student loans off quicker than they have to. It must be some kind of ingrained feeling that "any debt is bad", which whizzes through their brain and over-rides the logic of paying it back as slowly as possible.

I've been deliberating over this for awhile.

I have recently graduated from University and start work soon. My starting salary is high for a graduate so I was tempted to start making large contributions when I could. I won't be doing that now that i've read around but I think it was the 'stigma' of owing people money that I didn't like. I'm sure I'll get over it though. Thanks!

[Deleted User]

You're better off putting your 'overpayments' into an ISA and save, save, save

lilysgarden

Wow, am I the only student in the world who's leaving uni with more than 15 grands worth of debts?! Does this also mean it isn't worth my while taking a graduate loan to clear the credit card and loans I had before starting uni? Bearing in mind their probably at least 3 times the interest of my student loan?! I hate this money stuff at the best of times, but even less when my brains frazzelled from dissertations!!!!!