Paying off 20K student debt

#1
Hi all,

Anyone got any thoughts on paying off student as soon as possible?

i was recently advised to not save anything until I am debt free. That seems somewhat brash, is that a good idea?

When I do finally graduate (next year) I will probably have an entry level job earning around 21-22k.
 
#3
Bigdumps said:
Hi all,

Anyone got any thoughts on paying off student as soon as possible?

i was recently advised to not save anything until I am debt free. That seems somewhat brash, is that a good idea?

When I do finally graduate (next year) I will probably have an entry level job earning around 21-22k.

I'm much the same as you and was told different things over the last two years by previous students. You should make an appointment with your Student Services. Some rush to get it from around their necks but others say it's the cheapest loan you will ever have. I went to SS and have a case worker who is great.

If the debt goes over 25 years it's wiped out, or if you die.

I have heard urban myths about some young students opting to be declared bankrupt which puts you on the credit black list for one or two years, but can all but wipe out the debt. Ummm when something sounds too good to be true it always is. I only tell you about this so you don't do it!
 
#4
NOTE TO STUDENTS.

Stop going on the piss every night if you can't afford it.
Oh and get a job, No reason why you can't flip burgers in the evening :)
 
#5
You're just jealous you grumpy old fart...I love being a student :wink:

Most are working part time, study hard and still have a fantastic student life.

:p
 

oldbaldy

LE
Moderator
#6
I saw a student I know, last night, when he was working at a boating lake for tourists. At 7am this morning the same lad was working in a newsagents where I go for my paper. Not to pay his student loan but to help steer clear of an overdraft.
 
#7
You do not need to pay back anything under a student loan agreement until you earn above a certain threshold; it is unlikely that you will be earning above that amount for some years. The amount you are charged annually on this debt is minimal, and there is no good reason to pay it off until you have to. You will receive a reminder annually that will give you the option of paying it off if you are earning below the threshhold. Do not pay it back until you have no choice in the matter.

BTW what sort of degree and job will give you an entry level salary of 22k?
 
#9
Joe_Private said:
You do not need to pay back anything under a student loan agreement until you earn above a certain threshold; it is unlikely that you will be earning above that amount for some years. The amount you are charged annually on this debt is minimal, and there is no good reason to pay it off until you have to. You will receive a reminder annually that will give you the option of paying it off if you are earning below the threshhold. Do not pay it back until you have no choice in the matter.

BTW what sort of degree and job will give you an entry level salary of 22k?
A degree in War Studies and a career in the civil service - all being well.

My understanding so far is that the threshold is 15k per annum. Now, I am aware a number of students (im a fair bit older) have put much of their loan in an ISA or some such thing. Admittedly, if they can do that...why do they need a loan in the first place?

And...im getting married in May...eeeeeep!
 
#10
Big dumps said:
Hi all,

Anyone got any thoughts on paying off student as soon as possible?

i was recently advised to not save anything until I am debt free. That seems somewhat brash, is that a good idea?

When I do finally graduate (next year) I will probably have an entry level job earning around 21-22k.
I have paid nearly 60% of my student loan ,When you have a job just pay for the most essential items and then you have to be very strict and not spend you access money on luxury's you don't need .
 
#12
OK - so you're at KCL and if you're trawling the ARRSE you're probably in ULOTC. A different option to the Civil Service for clearing the loan is to join up.
 
#13
hason said:
I have paid nearly 60% of my student loan ,When you have a job just pay for the most essential items and then you have to be very strict and not spend you access money on luxury's you don't need .
Was your student loan for buying lots of crayons?


I don't think you can do a four year course in 'colouring in'.

Retard.
 
#14
Just go to the cashpoint, draw out the money and pay them back - End of student debt.
 
#18
I always understood that student debt was the last thing you paid off. It is accruing interest at the same rate as inflation, although I can't remember which rate...) and is, therefore, costing you very little. The cheapest debt going!

Litotes
 
#19
The interest rate paid on the student loan is decided annually by the retail price index in March/April of the previous year. It goes down as well as up.

This year, we got a relatively high interest rate (4.8%) - the highest it's been for years. Even so, you can still earn more in a good savings account or an ISA.

I'm in the situation where I'm in a position to pay off my £13.5k student loan with cash I have in my ISA and savings account. The question is - why would I want to? The average interest rate on the loan is a lot lower than the interest I make on my savings. Furthermore if I decided to pay it back I'd suddenly be missing 13.5k that could otherwise be used to put a deposit on a house or buy a car.

So, keep an eye on the annual student loan interest rate - and only pay it off when you can't earn more from interest elsewhere (after tax)... which will probably be never.

My old man asked his FA about this as well, and he echoed the above.
 
#20
Sell your ricker to the highest bidder on Ebay.
Paying back a student loan on a CS wage...you'll be lucky to be eating owt but pot noodles.
 

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