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Paying student loans back in one go?????

Hey All,

So the course I would do costs £9,250.

At the end of the degree I’ll be 27k in debt (without including interest).

I wanna know if I can pay all that back in one go? Like I save up for 3 years and then pay it back. Is that possible

Reply 1

Clearing and Applications Advisor

In theory yes but that’s financially a really stupid use of ~£30k

Have a read of the moneysavingexpert website on student loans

Reply 2

CSstudent23

Original post by PQ

In theory yes but that’s financially a really stupid use of ~£30k

Have a read of the moneysavingexpert website on student loans

I’m not tryna pay it back over time I hate being in debt. I would rather give that 30k away than be in debt and pay like 40£ a week

Reply 3

ArtsUniPlymouth

Official Rep

Original post by CSstudent23

Hey there!

It is possible for you to pay it all back in one go. I'd be surprised if you managed to save that much money during your three years at Uni but maybe you have sources of income that could allow for you to save that much!
I read your post where you said about not liking being in debt - I don't really consider my student finance as "debt" as it gets wiped after 30 years and you only have to pay a little bit back if you're earning over a certain amount anyway! You would be better off just keeping that money honestly if you made it, but obviously at the end of the day, it's your choice! You might change your mind as time passes though!

Best of luck with it all!
Jess
Student Ambassador and MA Illustration Student

Reply 4

ArtsUniPlymouth

Official Rep

Original post by CSstudent23

I’m not tryna pay it back over time I hate being in debt. I would rather give that 30k away than be in debt and pay like 40£ a week

It's not really £40 a week, it's much more likely to be that amount a month, if you're earning over the threshold.

Reply 5

Clearing and Applications Advisor

it's only £40 a week when you earn about £50k (and to be frank if you are earning around £1,000 a week you're not likely to notice the £40pw to SLC.

Please have a read https://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes/ - student loans aren't like other debts. Most students won't repay within 30 years if their STARTING salary on graduation is below £50k. 83% of graduates aren't expected to finish paying off their loan within 30 years. So unless you expect to earn £50k as your starting salary then early repayment won't actually reduce the amount you repay in real terms.

See also https://www.moneysavingexpert.com/students/should-i-get-student-loan/

Reply 6

Admit-One

Universities Forum Helper

Having been in the wide world of work for 20+yrs, I can tell you that I’ve paid back a net… zero of my loan. And I’ve lived pretty comfortably during that time.

As above, prioritise everything else above student loan repayments.

Reply 7

artful_lounger

Universities Forum Helper

Even when I was working full time equivalent I'd rarely pay back much more than £40 a month much less a week.

Also student finance debt is impossible to default on, so you'll never have bailiffs knocking down your door for repayments, unless you leave the country and don't tell SFE or misrepresent your earnings as a contractor/self employed worker. Further, it doesn't affect your credit score, and 30 years after you take out the loan (or when you hit 65, whichever happens first) whatever remains of it is written off.

There is literally no reason to pay it back in a lump sum, because it isn't actually "debt" in the general sense of the term. For all intents and purposes it's just a graduate tax, and a very small one at that. You could literally take that 30k you want to use to repay the student loan instantly, invest it carefully, and make more in interest from that investment than your student finance loan repayments cost anyway (unless you are earning oodles of money - in which case as above you won't even notice the relatively tiny outgoings every month anyway).

(edited 2 years ago)

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