Student loan re-payment

Guest2

Guest2

Guest2

Soldato
Joined
6 May 2009
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Everyone says its better to not make additional contributions and just keep paying it out of your wage however the interest rate is 1.5% on mine at the moment.

This is the same rate as the highest % ISA savings account I have and a lot more than standard saver account and things like e-savings which is 0.25%
 
I managed to find out APR for student loan (plan 1 before 2012)

2014/15 1.5%
13/14 1.5%
12/13 1.5%
11/12 1.5%
10/11 1.5%
9/10 0.0%
... - inbetween was raising and falling between 2.5% and 1.5%
08/09 3.54
07/08 4.8%


It was that first year in 07/08 that hammered me when I went travelling. I was told by student loan company that from September it the % will be falling to 0.9% However I am still tempted to pay off a chunk of my loan (it will be on about 16k now) Paying small chunks of 3 or 4k would soon get rid of it and wouldnt be a big hit like paying the full wack at once... that said, its only 0.9% apr now, so maybe leave the money in an isa where it earns 1.5%
 
cheesyboy said:
Cleared mine last month. Quite a relief it is too. Only took 12 years :rolleyes:
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Better than mine. Graduated in 2008 and its more now than when I started!

50k is quite something else though. I feel for the students now paying 9k tuition fees a year and a loan that doesnt even cover rent and bills
 
Thread update. I decided to pay off a chunk of it in September and use a lot of my overtime to help pay some off every month for te past 5 months

If I want to get rid of it, is it best to do it before April / May so I do not continue to pay it then not get a refund from SLC for a whole year?
 
I decided to pay chunks of mine off with overtime money i had spare. I was only spending it instead on things i didnt need. Also, my overtime is coming to an end soon so not paying SLC £15-£200 a month will lessen the blow of no OT.
 
4 years of fun, got a degree, got into 20k of dept, now almost paid it off. I actually think its a good system - without it I wouldnt have been able to go.

On another note did anyone see the news this morning that blackburn was a low-wage high welfare town whilst Cambridge was a high-wage low welfare town? They then show a toilet roll factory in Blackburn - not exactly a highly skilled job paying 60k. Media must be stupid sometimes, the reason Cambridge is like it is, is because people are skilled and dont work in toilet roll factories!
 
Agree. If you earn 21k or under for 25 years you can't be having much of a life.

As soon as I started earning >16k it was automatically deducted from my wage each month, only a very small abount like £6 - £10 but still, it was being paid off (and not even covering the interest)

The first year the interest was 4.5% too when I was travelling for 10 months
 
Amp34 said:
Its where you (actually your household) become a net contributor to the economy, rather than a net receiver.

So basically if you earn less than £35k then you get more in benefits than you pay in taxes, which is the majority of households in the UK.

http://www.telegraph.co.uk/finance/...he-state-in-tax-and-how-much-we-get-back.html

Obviously its a very generic/broad brush approach but then so was his comment in the first place.
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Is this because over £31,786 you get stung with 40% tax? In my opinion its a joke, work hard to get a good education then job, then pay 40% or 45% tax. Most of which goes on welfare - basically paying for scrotes that can't be arsed to learn and/or work. The past 6 months I have worked my sack off doing overtime and out of hours work, only for almost half of it to be taken off me. Backwards
 
Amp34 said:
I take from the article that essentially it costs around £35k per household to run the UK in its current form.
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For theorys sake, what would happen if every household only earned 20k? The UK would not grind to halt!

Might consider moving to Switzerland or maybe Dubai when I am earning more money
 
thebennyboy said:
Most people on the dole are people that have genuinely fallen on hard times, there are many scroungers though which unfortunately comes with giving money for "free".
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Incorrect. I have been on the dole twice, the first time for a month and the second time for a week. Everyone in JSA (multiple branches) were just trying to get their money a quick as possible and not look for a job. People were sharing tips on how to get more benefits and I was actually given info on how to claim more benefits by an advisor that worked there!

They should put a limit of a year on JSA before stopping it completely. Its a disgrace that people have been on JSA all their lives. If it was up to me they would be sweeping the streets or doing any old work to cover what they got.

Anyway, back on topic I plan to have my loan paid off by April
 
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