Student Loan

Hey, I'm starting University in September 2023 and would like to know whether I could pay off my student loans early. I have some money saved up. Would it be possible for me to start off with a student loan and pay off a year, for instance, at any time I want?

Dear Julia6411

First of all I am NOT a financial advisor.

Second the answer to your question is YES you can pay student loans through the SFE portal as soon as you receive funds from SFE.

Third WHY? If you are a UK citizen and after graduation you will earn less than approximately £56,000 a year you will never pay off a standard student loan. you will pay approximately $80,000 in interest over 30years and then the loan will be wiped clean. If living in the UK your student loans are only paid at 10% of your income over £26,500 (confirm this number as possibly lower). As a UK citizen your student loan has no bearing on your ability to get a housing loan. So conventional wisdom is to stop thinking of student Loans as loans and more as a Graduate tax that ends after 30years. Even if interest rates go up the tax rate of student loans is still only 10% of your income.

Please do not take my word for all this. All figures are estimates and subject to change. Tax law, student loan agreements and current processes could all change over 30 years. Martin Lewis the money saving expert has pages of advice on this subject. https://www.moneysavingexpert.com/students/student-loans-repay/

Mark Bush

Can an international student get a uk student loan