Student loan! what should i buy?
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I had put all of it in a savings account as soon as I got it. It was an "emergency" fund. I dipped into it now and again. I wasn't perfect at managing my money either - heck I was a student and wanted to have fun! Anyway, despite working and earning some money, I liked my good food, I like my travel, and I took up skydiving and motorbikes which cost me a lot of money... well skydiving cost me the most! 
By the end of uni, I had effectively dipped into 50% of my student loan, so I paid all of my "savings" account (which was 100% generated from student loan) off to the SLC in the hope to reduce my payback window (I know some people who were still paying it back in the 30s!). As it stands, I started paying it back late in 2003 (despite graduating over a year before then - but as I said work cocked up), but in the 7 years since started paying it back, I'm almost done, mainly down to the last 3 years where my salary has been helping to put a significant chunk into it (and out of my pocket
).
By the end of uni, I had effectively dipped into 50% of my student loan, so I paid all of my "savings" account (which was 100% generated from student loan) off to the SLC in the hope to reduce my payback window (I know some people who were still paying it back in the 30s!). As it stands, I started paying it back late in 2003 (despite graduating over a year before then - but as I said work cocked up), but in the 7 years since started paying it back, I'm almost done, mainly down to the last 3 years where my salary has been helping to put a significant chunk into it (and out of my pocket
).
....
When you're a student not earning you value money a lot more than say, you're in a £20k full time job.
Not personally. I've been out of uni around 2 years, now earning around £45k and value money a lot more than I did at Uni. Yes, I have more coming in but I also have more outgoing.
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Why wouldn't I? I'm almost done paying it back before I hit my 30s. I think that was rather sensible. I still have my ISA and savings account too - but I'll have no liabilities left by the end of the year.
What would you have done? Bear in mind this was quite a while ago too.
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Agreed - I appreciate and value money a lot more now than I did. However, it's also good to be young and have fun.
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I was on the old loan system and took 3 loans but didn't need one in my final year because, well, I didn't need it. Money left from placement and part time work.
First year I was sponsored by a company so I blew my money on a suped up engine for the car. Then it was just tyres and petrol for winning races after that.
I still had some of it lingering in 2006 and they decided to stick the rate up to 7.9% so I decided to pay it off with my savings. That £120 coming out the account each month does actually make a noticeable dent and it was the difference between having *only* just enough coming in each month and plenty coming in each month.
First year I was sponsored by a company so I blew my money on a suped up engine for the car. Then it was just tyres and petrol for winning races after that.
I still had some of it lingering in 2006 and they decided to stick the rate up to 7.9% so I decided to pay it off with my savings. That £120 coming out the account each month does actually make a noticeable dent and it was the difference between having *only* just enough coming in each month and plenty coming in each month.
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As someone with a student loan still left to pay, if I could go back and do it again, I would blow half and save half.
I enjoyed my time at Uni and would love to do it again. I paid for my tuition fees with my loan while my parents paid for my food and rent (I was very lucky). Whatever was left from my loan after paying fees, I spent on partying and gadgets.
However, now that I am working, I pay back 9% of everything over £15k that I earn. Whilst it's not a HUGE amount, it is another painful deduction from my monthly wage and, more to the point, the bonuses I receive sometimes (it hurts a lot on the bonus, since it's 9% of the whole bonus, since that is above the £15k threshold).
On the other hand, you are only young once and you could get hit by a bus and all that, so my vote is spend half and save half to try and compromise between living now and living later.
I enjoyed my time at Uni and would love to do it again. I paid for my tuition fees with my loan while my parents paid for my food and rent (I was very lucky). Whatever was left from my loan after paying fees, I spent on partying and gadgets.
However, now that I am working, I pay back 9% of everything over £15k that I earn. Whilst it's not a HUGE amount, it is another painful deduction from my monthly wage and, more to the point, the bonuses I receive sometimes (it hurts a lot on the bonus, since it's 9% of the whole bonus, since that is above the £15k threshold).
On the other hand, you are only young once and you could get hit by a bus and all that, so my vote is spend half and save half to try and compromise between living now and living later.
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I do my best to captialise on what I do have - at the time trying to get rid of the debt was the sensible thing to do in my eyes. I tried not to spend any of it, but took it out as a precaution and because I claimed complete independence from my parents so wanted to stand on my own 2 feet. I'm sure I could have stopped myself from dipping into it at all and just paid it off and made some profit from the interest rates 10 years ago which were a lot higher than they are now but when you're 19/20 and starting uni after travelling the world and pretty broke that's the last thing you think about!
Besides I wouldn't have got to do all the things I wanted to do. I did work and try and spend my money sensibly - I think I did a pretty good job all things considered.
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Having only needed to take 2 years worth of loan money (year out working paid for my 3rd year) I would defo say save the extra you don't need for food etc in an ISA or some such account and let it accumulate (of course it'll be much slower to do so now).
After 2 years and now about 3/4 of interest my total amount owed is still around the £10-11k mark but I'm going hopefully to pay off a large chunk of it as my savings aren't making more than the interest on the loan so no point sitting on the money!
After 2 years and now about 3/4 of interest my total amount owed is still around the £10-11k mark but I'm going hopefully to pay off a large chunk of it as my savings aren't making more than the interest on the loan so no point sitting on the money!
Yeah fair point. I know you would have more outgoings (as well as income). My point was the average cost of things you bought would probably be higher - renting a house, mortgage, car, tax etc. So as a student you could enjoy the 'smaller' things which the student loan gave you access to.
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This. The amount they take really hurts when you add tax, NI etc.
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What I mean is how can you have so much left over if you only get the loan?
I get 4.8k a year including a tiny tiny grant off the slc, plus my tuition paid. The 4.8k literally just pays my accomodation. No food, no beer, no books. Nothing
I'm just sort of perplexed how you have so much to spare. Unless you have a shed load of savings?
Most of the students I know who don't work have full loans, grants and thousands of savings given to them by parents.
I've managed to save up about £1000 in a few months, bombing work in, but even so I'll still have to work at uni to afford the basic standard of living.
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I've still got £1,500 of mine from Jan.
Don't think i get my next (and last) one till end of the month.
I'm just going to use it to live off and stay sensible in case job seeking is as bad as it was before i started my degree 3 years ago.
Don't think i get my next (and last) one till end of the month.
I'm just going to use it to live off and stay sensible in case job seeking is as bad as it was before i started my degree 3 years ago.
not sure who it really hurts, I don't notice mine in among my NI, tax, pension; and in theory the more you earn the less you should feel the pinch, even though you're paying back a larger monthly amount, as I said before that does mean you'll be paying it back over a shorter time.