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superman

Should I try to repay my student loan?

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My student loan statement came today. It says I owe them 40 grand or something. I was thinking about repaying it early but apparently Martin Lewis says its not really worth it?

 

My main concern is that I wanted to invest in the stock market etc, and I don't like having the interest from debts eating away at my gains. Though, I am not sure if I will still get charged interest after I finished university? (I have the post 2012 loans - 3% interest + inflation)

 

It really sucks that our batch got the highest fees and the highest interest rates. And I will be extremely jealous if Jeremy Corbin gets into power lool

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Please tell me this fun topic wasn't your way of jumpstarting the forum post-redesign

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No need to repay it early. Student loan won't take from you while unemployed or earning below a generous threshold, and when you get employed it takes a fixed percentage. Depending on income the rate is generally very very low. 

 

The debt also doesn't effect your financial status or change your credit rating. There aren't any set repayment periods etc. 

 

The only downside of the loan is it gobbles up 9% of your pretax income, so if I was you I'd pay slightly more of the threshold now if earning in the lower threshold or just pay what they take if in the higher threshold. 

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I've been trying to contact our national funding centre to pay back my loan but no one responds and the website is unhelpful. I wonder if I can use this as an excuse not to pay :hmm:

Like, I tried but you don't want the money so ...

Also, I have no idea how much I owe them :ph34r:

Haven't received statements in years

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4 hours ago, cubster said:

I've been trying to contact our national funding centre to pay back my loan but no one responds and the website is unhelpful. I wonder if I can use this as an excuse not to pay :hmm:

Like, I tried but you don't want the money so ...

Also, I have no idea how much I owe them :ph34r:

Haven't received statements in years

 

Continue life as normal. Just keep a record of your contact with them (in your case lack of) and they can't extract a penny from you.

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1 hour ago, Mo- said:

 

Continue life as normal. Just keep a record of your contact with them (in your case lack of) and they can't extract a penny from you.

Bro this is South Africa, its street rules

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Any amount of debt will impact your credit - pay it off as much as you can without taking away from your needs.

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25 minutes ago, Ishavemychesthair2 said:

Any amount of debt will impact your credit - pay it off as much as you can without taking away from your needs.

Do you mean credit rating? Student Loans don't affect that (not in UK anyway)

Other rules:

 

3% interest + inflation annually I think

Gets written off after 30 years of start of degree

Gets written off if you die

9% deducted from each pay packet/ pay slip goes towards debt

 

Apparently most people don't pay it all back before it gets written off so I heard its a good idea to not pay early lol

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33 minutes ago, Ishavemychesthair2 said:

Any amount of debt will impact your credit - pay it off as much as you can without taking away from your needs.

 

Student debt in the UK doesn't do this. It is in effect a graduate tax on those that received a grant. 

 

4 minutes ago, superman said:

Also if you earn below a certain threshold you don't pay anything http://www.moneysavingexpert.com/students/should-i-get-student-loan

 

Look this is why it frustrates me when they say the SLC excludes the poor from earning degrees - it does not!! They aren't loan sharks lol.

 

Yup it is a pretty good deal. I think the problem is that they phrased it in a way it's viewed as a debt when really it's just a tax. 

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19 hours ago, superman said:

Do you mean credit rating? Student Loans don't affect that (not in UK anyway)

Other rules:

 

3% interest + inflation annually I think

Gets written off after 30 years of start of degree

Gets written off if you die

9% deducted from each pay packet/ pay slip goes towards debt

 

Apparently most people don't pay it all back before it gets written off so I heard its a good idea to not pay early lol

2

Wow, that is great. Ours defers to your next of kin (at least that is how it was when I signed up for it).

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On 2017/06/04 at 2:40 AM, Mo- said:

 

Continue life as normal. Just keep a record of your contact with them (in your case lack of) and they can't extract a penny from you.

lol I don't know if I can continue life as normal cos its niggling at me that I owe this money and I want to get it out of the way. But yeah, I am keeping the emails that I have sent to them to show that I have tried to get in contact. 

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