Now that the interest on Student loans is increasing do you think it is worth paying more each month/year?
| Related: | Lifestyle•Students•Student Finance |
I am inclined to pay more into my mortgage, do you agree?
Answers (3)
Do you mean worth paying more towards the student loan repayments? Certainly not, for me. I'm never going to be able to pay back what I owe. It's just not possible in my career. Therefore, no matter how much they increase interest by, I'll only end up paying the same amount back before it's written off.
At current interest rates (as they have been since I took the loan out) my £21,000 will be £74,000 by the time it's written off. And that's AFTER I've spent 25 years paying off what I can each month.
Yes you are probably right. The interest you will no doubt pay over the lifetime of your mortgage will probably far exceed that of your student loan. From what cpj1987 has said about her student loan unless you ever are in a position to earn enough to realistically pay it off, why bother trying to? I have never had a student loan so do not really understand the principles of borrowing the money when it is accepted that this money may never be repaid. I am aware that if you earn in excess of £15k per annum (I think) you must make repayments on money owed. If your income falls below this threshold and you can afford to pay off extra towards your mortgage, then I would try and reduce it as much as you can now.
Always pay off as much as you can on your higher interest loans first. In the case of your mortgage you will have an asset once paid off as well.
Posts within the money.co.uk community represent the views, experiences and opinions of members only. They should not be taken as financial advice and should not be followed without further research.
More Questions for Student Finance
Get fast answers to your money questions, Expert insight, top tips & much more...
Oh my goodness put like that it sounds absolutely horrendous!
My son is hoping to go to university next year and I would dread him having that amount of debt.Given the course he is hoping to do it is going to be difficult for him to work part time while there. Perhaps it's just not worth it any more.
From my point of view, it was very much worth it. I didn't go for the piece of paper at the end of the three years, I went for the education and the experience, and I'm now in my ideal career, still living in the city I moved to for university, and in a long-term relationship with the man who was my closest friend throughout my time at university. All worth far more than £74,000, but of course it's easier to say that with the type of debt it is. I don't count it as true debt, because I won't ever have to pay it off and repayments are taken from my salary, more as a tax than a debt repayment.
Thankfully, the system is like that. The way I am with money, I would never have taken out £20,000 to get a degree in the first place, and my life would be so, so different.
I never actually worked out how much it would be (and take) to pay it off. That is a lot of money when you work it out. But if I hadn't have gone, I wouldn't have the job I do now.