Am i doing the right thing with my student loan money?

Marsy

Hi,
I work part time aswell as studying full time in university, my job money covers me for my exspenses so i dont touch my student loan money Total of £15,000 when i finish uni.
So whenever i get my loan money i put it straight into my ISA
Only thing is im not sure to pay it all back once i finish university (im currantly going onto my 2nd year in Sept). I feel if i was to keep the money there in my ISA, and end up needing it for something in the future ill be better off as it is cheaper than a bank loan. (I dont plan too, but you never now)

Also if i ended up getting a job for say £18,000 which i think works out £22 a month out of my salary. Could i still benifit from paying this back (monthly through my job) as im making more on it being in my ISA?

Thanks, im just wondering what other people will think of this idea?

Lokolo

Only pay back what you have to (the minimum)

The £15000 will be increasing at a rate of 4.8% (currently, going to 3.8% in Septmeber) each year for the loan.

Your ISA should be going at an ever more increasing rate (I hope you have an ISA which is paying more than 4.8%).

As you said, later on in life you may need the money for something else so its always good to keep it handy.

A_fiend_for_life

Hi! Very commendable strategy. I'm assuming you are eating healthily and your not stressing with your current finances though and not picking up costs such as charges and interest elsewhere. Otherwise keep going - very organized and responsible.

As far as I know the current student loan just comes out of your salary so if that is the correct value based on an £18,000 salary I would continue to pay out of the salary when you graduate as you would lose the equivalent of the previous two years ISA allowance if you were to pay it off in one go. I am assuming £15,000 is the value you will be depositing over your period of study rather than the deposit plus interest.

So long as the interest is greater than inflation the nest egg will grow. As inflation has jumped slightly I would check that you are still getting the best interest rate you can for your ISA. Banks need cash at the moment so there should be some good deals. Check out the savings board.

Marsy

Many Thanks for your comments.
Lol yes i am eating healthily and i try my best not to stress with my finances.
Just need to now im not making a bad decisions
I currantly got my ISA with Nationwide which i think is at a rate of 6%. Yes £15,000 will be the vaule i'll be depositing.
I will have a look around to see who does the best rates ISA's!