Student loan re-payment

No point paying it off, it's the only debt you can't default on and is cancelled if you move out of the country, retire or simply don't earn enough.

How bad would you feel if you spent lost of time and energy paying it off only to find yourself jobless a month later with no savings because you spent it all on paying off your SL?

I don't even consider it a loan or a debt because it doesn't act like one in any way (see line 1), it's more of a student tax.
 
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Surveyor said:
The caveat that should come with all investment advice.
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Of course, at the moment though it should be noted that very little risk is required to beat the savings rates being offered.

I mean even something like Zopa pays ~5% and that's p2p lending so no need to dabble in stocks and shares.
 
estebanrey said:
No point paying it off, it's the only debt you can't default on and is cancelled if you move out of the country, retire or simply don't earn enough.

How bad would you feel if you spent lost of time and energy paying it off only to find yourself jobless a month later with no savings because you spent it all on paying off your SL?

I don't even consider it a loan or a debt because it doesn't act like one in any way (see line 1), it's more of a student tax.
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Its not cancelled if you move out of the country sadly. They try and track you down, if they don't succeed they go after the guarantor, which is typically your parents.
 
D.P. said:
Its not cancelled if you move out of the country sadly. They try and track you down, if they don't succeed they go after the guarantor, which is typically your parents.
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When I got my student loan I was specifically told by the advisor that any outstanding amount is written off if you emigrate (leave the country for 10 years or more).

Also, student loans don't have guarantors.
 
D.P. said:
Its not cancelled if you move out of the country sadly. They try and track you down, if they don't succeed they go after the guarantor, which is typically your parents.
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what guarantor??? student loans are not subject to this

paying off a lump of your student loan is stupid, just forget about it, until its either paid off or its written off. No other loan stops when you're out of work or earn too little.

If the worst happens and you lose your job, you will regret paying off a lump sum you could have had in savings
 
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MrMoonX said:
what guarantor??? student loans are not subject to this

paying off a lump of your student loan is stupid, just forget about it, until its either paid off or its written off. No other loan stops when you're out of work or earn too little
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or turn 65, or become disabled, or have paid for 25 years etc etc
 
Ive got about £9k loan, I graduated in 2008.

Since then I had pretty average jobs maxing out at about £20k a year pay so havent been paying much back...they sent me a statement recently and the total Ive paid back is nearly exactly the same as the interest I have been charged....so I have basically paid nothing back really...

Since I got a new job few months ago they are taking about £100 a month...seems like such a waste...Im also tempted to just pay it all back...otherwise will take 7.5 years :eek:
 
Has anyone else noticed that interest is charged monthly, a deduction is taken from pay monthly, but the payment is only applied at the end of the tax year.

That's what is happening on mine...Bit of a con really.
 
stigggeh said:
Has anyone else noticed that interest is charged monthly, a deduction is taken from pay monthly, but the payment is only applied at the end of the tax year.

That's what is happening on mine...Bit of a con really.
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Even with that I believe they work it out properly.

Also comments about leaving the country and not paying back the loan to the government (if above the earnings threshold) is as bad as condoning benefit fraud and tax evasion.

Funny how some people are willing to break the rules when it suits them.
 
Makes me glad to be self employed. I only have to make one payment a year, no risk of overpayment or having to take into account money coming off my monthly pay.
 
estebanrey said:
When I got my student loan I was specifically told by the advisor that any outstanding amount is written off if you emigrate (leave the country for 10 years or more).

Also, student loans don't have guarantors.
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I emigrated and was hunted down by SLC, as were my parents who were on the contact information and they started receiving letter for court appearance that if I did not provide contact information they were authorized to seek repayment from my parents!

A lot of the rules change regularly; the 10 year rule was scrapped some time ago.
 
muon said:
Also comments about leaving the country and not paying back the loan to the government (if above the earnings threshold) is as bad as condoning benefit fraud and tax evasion.

Funny how some people are willing to break the rules when it suits them.
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Um, I wasn't advising people do it, I was stating that a Student Loan doesn't resemble a loan or debt in reality because there are almost no penalties and plenty of ways the loan is cancelled (unlike a 'real' loan).

I also mentioned that people who become disable can have it written off, did you read that as me recommending people severely injure themselves?


D.P. said:
the 10 year rule was scrapped some time ago.
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I'm pretty old ;)
 
It is actually getting a lot of press since many students either want to move aborad or find better opportunities there:
http://www.telegraph.co.uk/finance/...d-land-you-in-court-if-you-move-overseas.html


They are pretty good at tracking you down. I never gave them any information that I left the country or gave them any new address at all and they still go hold of me. I assume they managed to search passenger lists, found I flew to Switzerland a few times and asked the Swiss authorities for my address. It is possible my parents caved in under the mountain of legal threats they were sent- it makes the TV license warnings look you Christmas cards


Note, I had every intention of paying back the loan but I didn't want to do it my monthly directly debits room my swiss account because I would get charged 25 quid for each transaction. When I spoke to them they were adamant that no other arrangement could be made such as paying a lump sum twice a year, even overpaying the lump sum.
 
D.P. said:
Thing is if a mortgage is not on the horizon then it doesn't help.

and actually when you apply for a mortgage you need to declare all outstanding loans, including your student loan, and these loan amounts will be removed from your mortgage so unless you lie and cheat it doesn't actually help you there.
Does help pay off credit card bills or other loans though.
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A student loan is considered separately from a normal loan when it comes to mortgages though. As others have pointed out, if you lose your job, you don't have to to pay your student loan.

Yes having a SL reduces the amount of cash you have to spare each month so this will obviously reduce the amount you can pay back each month, but in the eyes of a mortgage provider, 20k of student loan is much more preferable to 20k of a normal loan.
 
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