Hey there! Sign in to join this conversationNew here? Join for free
    • Thread Starter
    Offline

    3
    ReputationRep:
    Is it possible to pay back a lump sum ammount (not the full amount of the loan) to student finance before i have finished my degree? If so, how?

    Edit: I should also mention that I am not paying back with my own money that would otherwise be used for other things. I am using money given to me by my grandparents, specifically for the use of paying for tuition fees.
    Offline

    1
    ReputationRep:
    Not sure how you'd go about it but it is supposedly better to put it in a high interest savings account instead of paying back lump amounts, in the long run
    (I don't know what I'm gonna do)
    Read this for more info of why: http://www.moneysavingexpert.com/loa...repay#payitall
    Offline

    0
    ReputationRep:
    Yeah, you can pay whenever, 01412433576 is the number of the loan repayments office.
    Offline

    2
    ReputationRep:
    (Original post by superman19)
    Yeah, you can pay whenever, 01412433576 is the number of the loan repayments office.
    Good answer
    Offline

    0
    ReputationRep:
    Yes you can, but you'll get a higher interest rate in a bank account(if you pick the right one) than you are paying on your loan so you would be silly to pay it back quicker than you have to.
    • PS Helper
    Offline

    14
    ReputationRep:
    PS Helper
    Yep you can, but like the others have said, put it in a savings account (or other high interest thing).

    You only pay back what the loan is worth, so getting extra money is best
    Offline

    2
    ReputationRep:
    You can in fact do it online, http://www.studentloanrepayment.co.uk/
    Offline

    0
    ReputationRep:
    OK, yes you can repay your loan whenever you want, even before the end of your course.

    When you finish your course, however, you start paying off your loan through your wages once you earn over £15000 a year. You pay 9% of your wages each month provided you are earning over the threshold above. You can pay off lump sums or just let it slowly drain down out of your wages.

    It is probably best, however, to not pay it back at an accelerated rate unless you are desperate not to owe the SLC any money. The money you owe is not technically counted as debt and is not considered for things such as your credit rating etc. The rate is lower than any other you will ever get again, and basically just follows inflation.

    You can even make money off your loan if you stick it in a high-interest bank account or ISA. The interest you earn is greater than the interest you owe.
    • Thread Starter
    Offline

    3
    ReputationRep:
    (Original post by bubbles50)
    Not sure how you'd go about it but it is supposedly better to put it in a high interest savings account instead of paying back lump amounts, in the long run
    (I don't know what I'm gonna do)
    Read this for more info of why: http://www.moneysavingexpert.com/loa...repay#payitall
    I was going to do this, but with the current economic climate it doesn't really make sense. The interest rate (inflation) for student loans is 4.5% i think and you can't even match that at the moment.
    Offline

    0
    ReputationRep:
    would it be worth putting your loan in an ISA? because it's only paid in installments
    Offline

    17
    ReputationRep:
    (Original post by lɪŋgwɪst)
    would it be worth putting your loan in an ISA? because it's only paid in installments
    Many (most?) ISAs allow deposits in after the initial one, so you could still use one. However, most students will probably not be earning above the £6,475 annual threshold at which you have to start paying tax, so may get better interest elsewhere.

    (Note: being a student does not automatically mean that you don't have to pay tax; the important factor is annual earnings, not student status)
    Offline

    0
    ReputationRep:
    (Original post by biffyclyro27)
    I was going to do this, but with the current economic climate it doesn't really make sense. The interest rate (inflation) for student loans is 4.5% i think and you can't even match that at the moment.
    This is utterly wrong!
    The current student loan interest rate was 3.5% in September last but has been 1.5% since February and from September 09 it will be an actual 0% for 12 months!
    • Thread Starter
    Offline

    3
    ReputationRep:
    (Original post by roubiliac)
    This is utterly wrong!
    The current student loan interest rate was 3.5% in September last but has been 1.5% since February and from September 09 it will be an actual 0% for 12 months!
    Ok perhaps i will put it in a high interest bank account. Anyone got any suggestions?
    Offline

    17
    ReputationRep:
    (Original post by biffyclyro27)
    Ok perhaps i will put it in a high interest bank account. Anyone got any suggestions?
    http://www.moneysupermarket.com/savings/

    You'll get access to higher rates if you can afford to go with a fixed term account, but that will place limits on when you can access the money.
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Would you like to hibernate through the winter months?
    Useful resources
    How much money do you spend a week?The ultimate guide to tax!Guide to student bank accounts

    Sponsored features:

    Web Legend

    Win a Macbook Air!

    Blog about setting up a website for a chance to win in our Web Legend competition.

    Quick link:

    Unanswered money and finance threads

    Groups associated with this forum:

    View associated groups
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.