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Spare student loan money..

Discussion in 'General Discussion' started by Chives, Feb 8, 2015.

  1. Chives

    Mobster

    Joined: Dec 17, 2009

    Posts: 3,584

    Location: Wales

    Afternoon gents. I have found myself in a position where I have a lot of my student loan left over and I very rarely need to dip into it to avoid myself needing an overdraft. It's quite a lot of money (into the mid thousands) and I was wondering what best to do with it. Its currently sat in one of those online e savings accounts with 0.1% interest :p. What is the best thing to do with it? I know very little about these matters
     
    Last edited: Feb 8, 2015
  2. ivrytwr3

    Mobster

    Joined: Aug 25, 2006

    Posts: 3,504

    all on red.
     
  3. malfunkshun

    Soldato

    Joined: Aug 20, 2003

    Posts: 6,661

    Location: Pembrokeshire

    Pay it off your student loan?
     
  4. yer_averagejoe

    Mobster

    Joined: May 23, 2005

    Posts: 2,958

    Location: Dundee, Scotland

    YOLO
     
  5. {SAS}TB

    Soldato

    Joined: May 20, 2007

    Posts: 5,048

    Location: Location: Location:

    Student loan money left over?

    You're doing it wrong ............
     
  6. Chives

    Mobster

    Joined: Dec 17, 2009

    Posts: 3,584

    Location: Wales

    My family very kindly send me a a bit of money my way as well, which usually leaves me with no need for the loan, at least for day to day living expenses ;)
     
  7. Glaucus

    Man of Honour

    Joined: Mar 11, 2004

    Posts: 76,645

    Safe high interest savings account for a house deposit in ~6 or so years
    Medium risk high interest savings account & funds/shares for a house deposit in ~6years or so years
    High risk funds/shares for a house deposit in ~6years or so years

    And any extra money keep adding to it, and when you start work put a little money in every month.
    You think it's not worth it, but so many people, myself included regret not doing it. Even £50 a month is better than nothing. It soon adds up by your late 20s.
     
  8. Deus Ex

    Hitman

    Joined: Aug 22, 2013

    Posts: 931

    Location: North East

    Start a business.
     
  9. Chris [BEANS]

    Soldato

    Joined: Dec 30, 2003

    Posts: 6,287

    Location: Bigger box!

    Pay back the loan! Future without debt is the way forward.....
     
  10. Glaucus

    Man of Honour

    Joined: Mar 11, 2004

    Posts: 76,645

    Absolutely do not do this. Unless you own your house outright.
    It is a very cheap and risk free loan.
     
  11. monkeypants

    Mobster

    Joined: Jun 12, 2005

    Posts: 2,804

    Location: A lake!

    I think if you didn't pay it back now and don't need the cash at all then you'd look back in 5-10 years and wish you had paid it off. However, it's nice to have a bit of an emergency fund so perhaps consider paying back two thirds of what you have left.
     
  12. Chives

    Mobster

    Joined: Dec 17, 2009

    Posts: 3,584

    Location: Wales

    I have heard it is better to make use of the loan...
    Indeed. Heard from several people that it is 'the best loan you will ever get'

    Something like this is what I had in mind. Now to find the best one
     
    Last edited: Feb 8, 2015
  13. Tobywon

    Hitman

    Joined: Jan 7, 2009

    Posts: 664

    Location: Germany

    Go traveling with it and see the world. I have £45,000 student debt and am currently in Malaysia. It's great!
     
  14. Kenai

    Capodecina

    Joined: Apr 5, 2009

    Posts: 18,034

    Put it in savings, use it towards a house deposit.

    You would struggle to get the equivalent amount back as additional mortgage value in the future if you just paid it back so to speak.
     
  15. Terminal_Boy

    Soldato

    Joined: Apr 13, 2013

    Posts: 7,077

    Location: La France

    What ^ he said. Thanks to your folks and your not wazzing it up the wall, you've got a chance to use the loan to your advantage.
     
  16. Skeeter

    Caporegime

    Joined: Mar 8, 2007

    Posts: 37,147

    Location: Surrey

    Make it work for you. A student loan is the cheapest loan you will ever have. Putting it in some high interest savings to use as a house deposit later is a good call.

    Paying a student loan off early is a foolish thing to do for the majority of people.
     
  17. amigafan2003

    Capodecina

    Joined: Jan 18, 2008

    Posts: 14,286

    Location: Fylde Coast, Lancashire

    +1

    I've taken all the maintanence loan I can, I don't spend any of it so I've and chucked it into an stock options based investment plan that's currently returning 8% p.a (of course I could lose all of it at the drop of a hat but meh).
     
  18. phil675

    Mobster

    Joined: Jan 15, 2005

    Posts: 4,389

    Location: UK

    I'm in a similar situation, I bought a motorbike.
     
  19. Caged

    Capodecina

    Joined: Oct 18, 2002

    Posts: 23,242

    Ah yes, those high interest savings accounts such as
     
  20. FlapR

    Hitman

    Joined: Oct 5, 2011

    Posts: 591

    Location: Manchester

    Same answer as a few others. High interest savings account to use for a deposit on a property.