Student finance loan repayment!
Hi, I logged into my student loan repayment account after completing my first year at university and its showing that my interest rate is 7.1% in plan 2. I took out tuition fee loan and maintenance loan (5k) and its already accrued 130 pounds in interest. I don't know what to do or how to manage it- is it not possible to pay off the principal loan or can I only repay towards the overall amount? Can anyone please advise, I'm very stressed about this and thought it would be 6%. Thank you
If it helps, don't think of your loan as a loan. Think of it as a graduate tax. Given you have a degree, chances are you will earn more than your non-degree counterpart so can afford to pay something back in return for that education. The government has deliberately rigged the system to make it pretty much impossible to pay back. But given that when you earn it comes out of your pay packet you don't miss it.
The other solution is to set up your own business and then pay yourself a salary below the minimum threshold whilst topping your income up through dividends.
The other solution is to set up your own business and then pay yourself a salary below the minimum threshold whilst topping your income up through dividends.
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