Are you making student loan repayments? If so, read!

I've just discovered that the interest rate for student loans has been cut from 3% to 0% until the 31st August 2010!! - I didnt get any letters or emails telling me about it I only found by chance because I logged in to check what my balance was (what a painful experience )

I think I better take advantage and make some extra payments when I can!

Just thought Id share that with the fellow student loan payee's

My advice..... Don't.
you can earn more interest in savings than you loose on a student loan, so only payback what you have to, and put the rest in savings!

Radio 4 were talking about this a while a go. Lucky you!

Yay for me

Better than last year when I was paying off £15 a month and they were charging £30 interest per month!!!

The *******s are taking £200 per month off me atm.

Originally Posted by Jackie_Black

The *******s are taking £200 per month off me atm.

Try £100 a week!

Originally Posted by Duckboy1989

My advice..... Don't.
you can earn more interest in savings than you loose on a student loan, so only payback what you have to, and put the rest in savings!

I am saving, but its frusturating when you pay back X amount (via PAYE) which doesnt even make a difference. My PAYE payments dont cover all the interest which means Im not even paying it off At least I can make some difference now

I heard it gets written off when your 65..I hope thats true!

Originally Posted by carty

Try £100 a week!

Are you kidding? ouch!! Mine is only £30 a month (which is good or bad depending on how you look at it *shrugs*)

I heard it gets written off when your 65..I hope thats true!

It does indeed!
i know it seems wierd not paying it, but so long as you can earn a higher % interest on savings, your better off just leaving it.
I'm sure there must be accountant on here that can explain better........

Alternately... move to another country without telling them... apparently it works....... but don't quote me if you get found out.

[phi-dan]

Hehe, I'm on the original student loans system, where you get to defer repayment if you earn below x% of the national average wage. Thanks to low NHS pay, and "modest" public sector pay awards I haven't paid back a penny yet, and I graduated 12 years ago! And thanks to a recruitment freeze (to try and claw back some of the £50 million-ish my Trust owes)there's no chance of a promotion to push into the repayment bracket.

I don't understand why you'd pay extra when you interest rate has gone down. While your interest rate is 0% you could pay nothing until it goes back up again and whilst it would take longer to pay off it would cost you no more. If you pay extra then sure you would pay less in interest when the rate goes back up, as it is a percentage of the overall balance, but you can do that and reduce the overall balance at any time. They take interest as a percentage of your balance, not as a percentage of your payments.