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    I saw on tv the other day that the government hadn't decided if they will impose Early Repayment charges on student loans for those people paying the new fees.

    Does anyone know if they have decided on this yet?

    Personally I think it is shocking they would even consider it but nothing surprises me now after these increases lol
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    Why would you want to pay it off early anyway? It's the best debt you can have, the interest rate is so low that it's you'd make more money by putting your money in a high interest rate savings account instead of paying of large lumps of the debt at once.
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    (Original post by Phobia27)
    Why would you want to pay it off early anyway? It's the best debt you can have, the interest rate is so low that it's you'd make more money by putting your money in a high interest rate savings account instead of paying of large lumps of the debt at once.
    I would rather be debt free tbh. Paying it off may not be the best option financially but I don't want to be in debt. It doesn't matter if it is the best kind of debt, I still don't want it lol I'd rather have peace of mind then make small amounts of money in savings. Plus I would rather avoid the monthly bout of depression when I get my pay slip and realise an extra chunk of it has gone.
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    (Original post by Smophy)
    I would rather be debt free tbh. Paying it off may not be the best option financially but I don't want to be in debt. It doesn't matter if it is the best kind of debt, I still don't want it lol I'd rather have peace of mind then make small amounts of money in savings. Plus I would rather avoid the monthly bout of depression when I get my pay slip and realise an extra chunk of it has gone.
    Sorry but it really is quite foolish to pay off your student debt just for peace of mind. When you leave university there are many other things that should take priority first, such as mortgages, overdrafts, and credit cards. And even after all that, you still shouldn't, you can make hundreds a year just by having the money in an high interest rate account. You should read this article for further information, it explains why you shouldn't do it better than I could - http://www.moneysavingexpert.com/loa...nt-loans-repay

    Yes it may look depressing having some of your pay slip taken away, but this is completely counter acted when you look into your savings account and find even more money has been made through interest.
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    (Original post by Phobia27)
    Sorry but it really is quite foolish to pay off your student debt just for peace of mind. When you leave university there are many other things that should take priority first, such as mortgages, overdrafts, and credit cards. And even after all that, you still shouldn't, you can make hundreds a year just by having the money in an high interest rate account. You should read this article for further information, it explains why you shouldn't do it better than I could - http://www.moneysavingexpert.com/loa...nt-loans-repay

    Yes it may look depressing having some of your pay slip taken away, but this is completely counter acted when you look into your savings account and find even more money has been made through interest.
    I do completely see your point. I know that it is much better financially not to pay it off. I would only be paying of a large amount though if I was to come in to a large amount of cash, which is unlikely, but I just wanted to know if I would be punished with early repayment charges for doing so.

    Thank you for all the information though
 
 
 
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