univeristy loan questions

OpenToSuggestions

OpenToSuggestions

OpenToSuggestions

Soldato
Joined
5 Aug 2006
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11,423
Location
Derbyshire
Hi, I am coming to the end of my 2nd year at uni, and therefore owe circa £13k in loans. I have savings and would like to pay as much as possible off in june, then take the next loan in october, as this way I owe very little /nothing for a few months and will save on interest??

Either that or I just pay my own way next year and dont get a loan.

I am 99.9% sure I will be earning over 15k upon graduation and so will have to pay back the loan. I originally thought the loans were interest free but they arent:(

So, whats the best option?
 
Savings account interest rates are greater than the loan interest rate, therefore you should take out as much loan as possible and put it into a savings account.
 
The limit isn't 15k, it increases every year. at the moment it's about 24k I think. I'm under it by about £5 a month and I never seem to get any closer.

You could put you money in a high interest account so you earn more in interest than the loan accrues. The trick is not to spend the cash

Someone more qualified than me will be along in a minute to give you some better advice i'm sure :o
 
Energize said:
Savings account interest rates are greater than the loan interest rate, therefore you should take out as much loan as possible and put it into a savings account.
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Indeed. Put the money in the highest rate savings account you can that offers the facilities you need, likely to be an ISA.

Inflation interest rates for student loans is at 4.8% I believe, so you need one that's higher.
 
DO NOT PAY BACK YOUR STUDENT LOAN IN FULL.

You will ALWAYS be able to earn more in interest on the money you'd use than you'd save by paying it back.
 
Its starting to come out of my pay, ~£95 a month, however tax changes mean i'm still earning more than before that loan payment came out.

Looked at a statement and its about £46 interest a month on the loan if i'm not mistaken (about 10k loan)
 
there's no point in paying it back

you just leave it there and they take payments out of paycheck

i heard that if you haven't payed it back after 10 years then it gets wiped, but thats prob not true
 
RichIbizaSport said:
I was reading the t&c the other day and they basically say if you dont sort out arrangements to pay when you move abroad they'll hunt you down and make you pay!
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thats bs, like tv license people

i know for a fact that people have gone to the US without paying

just dont expect to come back to the uk
 
I expect to go USA, however knowing my luck I will be hunted down. I am becoming an engineer and what I aim to earn will deffo mean I have to pay it back. I just want it paid of asap, cant see it being anything but more outgoings when I come to get a house or whatever, whether that be 2 or 10years time.
 
mglover070588 said:
I expect to go USA, however knowing my luck I will be hunted down. I am becoming an engineer and what I aim to earn will deffo mean I have to pay it back. I just want it paid of asap, cant see it being anything but more outgoings when I come to get a house or whatever, whether that be 2 or 10years time.
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they cant hunt you down, not for £10K, its bull

just dont come back expenting to use the NHS or something
 
[TW]Fox;11884668 said:
Yup £3-4k loan for living away from home and £3k fees loan per year.
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ow, forgot about top up fee's. so after a 4 year course you will over £24K!!!!

at them moment its going to take me about 5 years to pay of my 12K student lone. that's taking the.....
 
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