Paying Back Loan Early

Hi there,

Wondering if someone can offer some guidance about a hypothetical scenario please:

If I were to use a student loan to take two short/part time courses, and I were to call student loans before my deductions were to start after finishing my studies in order to pay it off in full... would the amount I owe have been subject to any interest accumulation?

Thank you

Reply 1

Fox Hound

Hello, the answer to your question is yes. You begin accruing interest on the day that payment is made to you or your institution so interest will still be added on over the course of your studies. Check out page 10 of this document for clarification:

https://media.slc.co.uk/sfe/1920/ft/sfe_terms_and_conditions_guide_1920_o.pdf

Reply 2

anettjonsson