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    I took out a student loan a few years ago to start university but quit during the first year so I only borrowed £900, this after 3 years has increased to 1070 due to inflation or interest Im not sure which. Anyway Ive recieved £1000 as a family will and Im wondering would it be better to pay it off now with this? Im not in full time employment, would you wait until you were in full time employment earing over a certain amount before paying it off, bearing in mind by much more interest will have gone on it? I feel like Im losing out somehow by paying it off now but what would you do?
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    This might be useful. http://www.moneysavingexpert.com/loa...nt-loans-repay
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    That was very helpful Mel16
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    Do you have any intention of going back to university and applying for finance again? If so, I definitely advise paying it off.
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    I would suggest not paying it now, as when you start work they will take such small amounts out of your pay that you may hardly notice it. That way you can enjoy the money now, put the 1000 plus in the bank and get interest on that!
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    Thanks, its going up by £20 every 3 months they call this low interest??
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    (Original post by Jennifer87)
    I would suggest not paying it now, as when you start work they will take such small amounts out of your pay that you may hardly notice it. That way you can enjoy the money now, put the 1000 plus in the bank and get interest on that!
    By the time I get a full time job/career though it would have gone up a lot more. I know what you mean though.
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    If I were in your situation I would want to keep the money.
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    (Original post by saturn)
    By the time I get a full time job/career though it would have gone up a lot more. I know what you mean though.
    If you get an ISA account you will earn more interest on the £1000 than your student loan will increase in interest. Therefore it is more profitable to save the £1000 as opposed to paying off your loan.
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    Plus it you paid the £1000 towards your loan now then you later need some money for a deposi on a house, postgrad studies e.t.c it would mean you having to get a commercial loan which would charge you much more interest
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    (Original post by Chrisateen)
    Plus it you paid the £1000 towards your loan now then you later need some money for a deposi on a house, postgrad studies e.t.c it would mean you having to get a commercial loan which would charge you much more interest
    Aye. That's why I have some saving accounts and when they are done I will be looking for fixed rate investment bonds for one big lump sum. When my account is over I should be able to invest in around 10k and that's not taking into any account of any employment during university, holiday or term time.
 
 
 
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