Paying off student loan Watch

Joshmeid
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#1
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Is it best to pay off my student loan in full when possible or to leave it to pay itself off over time?

It seems much cheaper by paying off straight away. What are your opinions?
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Lulu24
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(Original post by Joshmeid)
Is it best to pay off my student loan in full when possible or to leave it to pay itself off over time?

It seems much cheaper by paying off straight away. What are your opinions?
I am trying to pay mine off whilst i am at uni. I think it is undignified to wait until it "expires".
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Reue
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(Original post by Joshmeid)
Is it best to pay off my student loan in full when possible or to leave it to pay itself off over time?

It seems much cheaper by paying off straight away. What are your opinions?
Entirely depends on what the interest rate on it is.
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PrincessZara
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Message Bill Gates through Facebook. There is always that 0.01% chance that he will send you some money
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elfreda69
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Depending on the interest rate, i would advise against paying it off early. See martin lewis' website.
Let's say that you over pay by £250 per month that will equate to £3000 per yr.
Instead of paying off the loan you could put this money into a savings account and after 3 or 4 yrs you would have enough to put a deposit down on a house or buy a car. The interest rate for buying a car is typically 17% so you would save money by not having to pay that. Likewise, a bigger deposit when buying a house equals a lower mortgage.
Student loans are repayable on any amount qbove £21k. You pay 9% of earnings above 21k.
I was a mature student and took out a loan 10yrs ago. When i first started working i earnt around 27k. I think i only paid about £70-90 per month. As my salary increased so did my loan contributions. To be honest, i really did not notice the money, and i was quite strapped for cash (high rents, cost of living in london etc).

Iknow that it is not nice to think thst you owe so much money, but you should focus more on saving for a mortgage etc before paying off the loan.
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Findlay6
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Assuming that you get a good job as soon as you leave uni and earn over a certain amount it will automatically come out of your wages and be visible on your pay-slip for any job, saying that if you have extra cash and can pay off more, go for it.
The interest is ridiculous though, so if you are paying it off it needs to be consistent or the interest will catch up with you and make it worthless.
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