That depends. If you're not getting 1.25% on savings/investments then your money is inflating itself away faster than your loan is so you'd be better off paying it.
Student loan repayment
- Thread starter goldy6660
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That depends. If you're not getting 1.25% on savings/investments then your money is inflating itself away faster than your loan is so you'd be better off paying it.
This thread prompted me to look at my own student loan debt etc. I'm on plan 1, I think the loan interest rate is 1.5%. I did check to see if mine was the loan type that's wiped after x number of years and it isn't 
its wiped when I hit 65!! I can't really afford to put more towards it so it looks like 10 more years for me until mines paid off.
its wiped when I hit 65!! I can't really afford to put more towards it so it looks like 10 more years for me until mines paid off.
Soldato
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If pre-2012 loans, then its simple, dont pay anything extra regardless.
If post 2012, then if you earn around 50k or so+, and have cash to spare, its worth doing the calculations and then making extra payments.
The caveat to this is, once you decide to pay it off, you need to do it aggressively and not stop, otherwise all additional repayments become entirely wasted money providing no benefit at all.
If post 2012, then if you earn around 50k or so+, and have cash to spare, its worth doing the calculations and then making extra payments.
The caveat to this is, once you decide to pay it off, you need to do it aggressively and not stop, otherwise all additional repayments become entirely wasted money providing no benefit at all.
As others have said you need to contact SLC and get them to tell your employer to stop the PAYE payments. This can be quick or long depending on your employer. Once you're on DD then you can do the one off payment and there will be no overpayments. I recently did this as they contacted me to say i was in my final year of payments and it took around 3 months to clear through and switch over. Should be done with SLC after 2 more months 
If you are not getting 1.25% on investments you are either very unlucky or doing something very wrong.
Associate
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I graduated in 2020 and owe a despicable >£60k.
The loan rate of 12% is scandalous. As others have said, I'll evaluate overpaying when I hit a salary of £50k+, but should the high rates of inflation continue for any number of years then it'll likely just more sense to wait for it to be written off.
The loan rate of 12% is scandalous. As others have said, I'll evaluate overpaying when I hit a salary of £50k+, but should the high rates of inflation continue for any number of years then it'll likely just more sense to wait for it to be written off.
That certainly could happen in the past, it was some odd system where they looked at tax records or something (?).
I guess the assumption is or was that it would only cause slight overpayments and then they'd just refund it but it caught out quite a few people in the city especially if they had generous bonuses.