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Original poster

To wonder why anyone rushes to pay off their student finance?

267 replies

ChoppedChorizo · 11/02/2025 17:56

A couple of friends of mine make regular overpayments with a view to paying it off quicker. Some have used inheritance to clear it. I don’t understand the motivation? The lot gets written off if you haven’t paid by X number of years.

Mine has continued to increase - I started uni in 2012 so my fees were around £7k per year. Plus living. It sits around £23k now.

Ive earned well enough but did a post grad (self funded) two years of training on the job and then had children and so two years of mat leave.

I don’t see the motivation to pay it off sooner.

OP posts:
ThePartingOfTheWays · 11/02/2025 20:17

We are eating our young.

Original poster
ChoppedChorizo · 11/02/2025 20:17

@Meredithwho I’m sorry that sounds so unfair! My debt pales in insignificance.

OP posts:
MidnightPatrol · 11/02/2025 20:15

I paid mine off (albeit noting it was nowhere as big as today’s students) because I psychologically couldn’t cope with a 51% tax rate.

So I paid it off, shaving probably 2 years of payments off.

If I were ten years younger, my debt would be 4x higher though. Then it may not have made as much sense.

My younger colleagues will be stuck on that 51%+ rate for many, many years (decades) longer than me.

Original poster
ChoppedChorizo · 11/02/2025 20:14

Tiredtiredtiredachey · 11/02/2025 20:11

Because those of us who went to uni on plan one before z2006 don’t get them written off until we’re 65. I had 5 years at uni on the old cheap fees and ran up about 23k. After years as a low earner where the “cheap” interest meant my balance increased I now earn 59k and repay 255ish a month with approx 7k left to pay. Something terrible would have to happen for me not to pay off that 7k before I’m 65 so I can save myself interest currently at 4.something % if I pay it off in one go. Plus I “earn” 255ish extra a month as my pay packet increases.

And it does affect mortgages. Mortgage lenders look at your wage slips. They judge affordability on take home pay.

Thank you - I didn’t realise there were two sides to the part 1 rules that differed so drastically.

OP posts:
Original poster
ChoppedChorizo · 11/02/2025 20:13

BornSandyDevotional · 11/02/2025 20:01

You asked a question. People answered it. Ultimately, if you don't want to overpay your student loan repayments, just don't. You're the only one that's rattled by this. Or the only one that has a vested interest in your student loan. At £263pcm, it won't hang around for 25yrs. Unless it's a lot of money or you're planning on earning less. Or whatever.

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As I said above I was interested in canvassing opinion.

OP posts:
Original poster
ChoppedChorizo · 11/02/2025 20:13

Completelyjo · 11/02/2025 20:00

But on a 60k salary you will pay it off before, hence you will pay more interest than needed.
Why do you keep banging on about it being written off?

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Because I earn that now and as I said that’s relatively recent, but there’s no guarantee I won’t get knocked up or earn less, or lose my earning ability. But my mortgage will still be repayable. I was interested in a discussion.

OP posts:
Tiredtiredtiredachey · 11/02/2025 20:11

Because those of us who went to uni on plan one before z2006 don’t get them written off until we’re 65. I had 5 years at uni on the old cheap fees and ran up about 23k. After years as a low earner where the “cheap” interest meant my balance increased I now earn 59k and repay 255ish a month with approx 7k left to pay. Something terrible would have to happen for me not to pay off that 7k before I’m 65 so I can save myself interest currently at 4.something % if I pay it off in one go. Plus I “earn” 255ish extra a month as my pay packet increases.

And it does affect mortgages. Mortgage lenders look at your wage slips. They judge affordability on take home pay.

Meredithwho · 11/02/2025 20:08

My student loan increases insanely each year; I did a 5 year degree and it currently sits at over £115k. I earn way over the threshold so am paying it back but last year they added over 5k in interest and I paid back 2.3k…

edited to correct the numbers

CheeryOtter · 11/02/2025 20:06

I currently pay 9% of my income over 27k to my student loan. I owed 40k 8 years ago and that's now increased to 48k! Only in the last couple of years have I actually paid off more than the interest but I am on track to pay it off eventually. Id rather get rid of it as fast as possible.

ThePartingOfTheWays · 11/02/2025 20:05

IKnowAristotle · 11/02/2025 18:53

Mine gets written off when I'm 65. I'm determined to get there without paying it off!

Top tip: if you have two jobs, you get two thresholds so have to pay back less.

I discovered this about 18 months after mine got sold off, without my consent. It's knowledge that has served me well!

BornSandyDevotional · 11/02/2025 20:01

ChoppedChorizo · 11/02/2025 19:54

Firstly, you made an assumption re my earnings. I didn’t divulge anything until quite late on.

Secondly - how much you can borrow has no interlink between your future earning potential. I’m not clear why you’ve raised that?

Show quote history

You asked a question. People answered it. Ultimately, if you don't want to overpay your student loan repayments, just don't. You're the only one that's rattled by this. Or the only one that has a vested interest in your student loan. At £263pcm, it won't hang around for 25yrs. Unless it's a lot of money or you're planning on earning less. Or whatever.

Completelyjo · 11/02/2025 20:00

ChoppedChorizo · 11/02/2025 19:53

I’ve said it earlier on the thread - but view my mortgage, which has a similar interest rate but a much, much larger amount of capital and will never get written off a priority vs student loans.

Edited
Show quote history

But on a 60k salary you will pay it off before, hence you will pay more interest than needed.
Why do you keep banging on about it being written off?

Original poster
ChoppedChorizo · 11/02/2025 19:54

BornSandyDevotional · 11/02/2025 19:52

Not at all. Your OP came over as if you were earning below the threshold. Rather than earning over £60k annually. If it's going to be written off at some stage - at £263 a month - how ever much were you able to borrow?

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Firstly, you made an assumption re my earnings. I didn’t divulge anything until quite late on.

Secondly - how much you can borrow has no interlink between your future earning potential. I’m not clear why you’ve raised that?

OP posts:
Original poster
ChoppedChorizo · 11/02/2025 19:53

Completelyjo · 11/02/2025 19:52

Why doesn’t it makes sense? You will pay more interest paying your loan off slowly, you
specifically on your income will pay more interest.
It’s not 4.5 isn’t rock bottom interest. In many cases it does make sense to pay it off. Why are you making it seem like it’s a cut and dry case for everyone?
If you don’t have the spare money to overpay then you’re simply working with the financial situation you have, that doesn’t mean it doesn’t make financial sense to clear it early though.

Show quote history

I’ve said it earlier on the thread - but view my mortgage, which has a similar interest rate but a much, much larger amount of capital and will never get written off a priority vs student loans.

OP posts:
BornSandyDevotional · 11/02/2025 19:52

ChoppedChorizo · 11/02/2025 19:40

My point was obviously that it hasn’t been a barrier to mortgages. Although I know you’re being deliberately obtuse.

Show quote history

Not at all. Your OP came over as if you were earning below the threshold. Rather than earning over £60k annually. If it's going to be written off at some stage - at £263 a month - how ever much were you able to borrow?

Completelyjo · 11/02/2025 19:52

ChoppedChorizo · 11/02/2025 19:45

It doesn’t mean it makes the most financial sense to pay it back early though does it?

Show quote history

Why doesn’t it makes sense? You will pay more interest paying your loan off slowly, you
specifically on your income will pay more interest.
It’s not 4.5 isn’t rock bottom interest. In many cases it does make sense to pay it off. Why are you making it seem like it’s a cut and dry case for everyone?
If you don’t have the spare money to overpay then you’re simply working with the financial situation you have, that doesn’t mean it doesn’t make financial sense to clear it early though.

Original poster
ChoppedChorizo · 11/02/2025 19:49

BornSandyDevotional · 11/02/2025 19:15

You're economically productive, sure. Just below the threshold for repayments. Which is fine. Circumstances do change though. In the many, many years before the debt is written off. Interest keeps applying annually wether you're paying or not. Wouldn't be a risk Id be prepared to take. But it's up to you.

Who said I was below the threshold? Are you directing that at me?

OP posts:
Original poster
ChoppedChorizo · 11/02/2025 19:45

Completelyjo · 11/02/2025 19:42

So you earn 60k doing 3 days a week and you can’t figure out that you’ll pay less interest if you pay it off early?

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It doesn’t mean it makes the most financial sense to pay it back early though does it?

OP posts:
dahliadiva · 11/02/2025 19:42

My student loan debt is currently 93k, plan 2. I'm a part time FE teacher so I earn under threshold to repay. Balance goes up and up each year. Crazy system really. It will get written off eventually.

Completelyjo · 11/02/2025 19:42

ChoppedChorizo · 11/02/2025 19:38

I earn above it. I pay around £262 pcm, it varies slightly as I have SE income. This is only relatively recent though as I’ve only been back at work 3 years after my last baby.

Show quote history

So you earn 60k doing 3 days a week and you can’t figure out that you’ll pay less interest if you pay it off early?

Original poster
ChoppedChorizo · 11/02/2025 19:41

@Catza I was the year before the tuition fees went up again - I timed it well, despite not having meant to. The cost of uni is eye watering now.

OP posts:
Original poster
ChoppedChorizo · 11/02/2025 19:40

BornSandyDevotional · 11/02/2025 19:22

Cool story, bro

Edited
Show quote history

My point was obviously that it hasn’t been a barrier to mortgages. Although I know you’re being deliberately obtuse.

OP posts:
Original poster
ChoppedChorizo · 11/02/2025 19:39

Plus I can reinvest £23k but can’t if I’ve used it to pay off a loan.

OP posts:
Original poster
ChoppedChorizo · 11/02/2025 19:39

GermanBite · 11/02/2025 19:28

I’m on plan 1 so it’s 4.3%

That's higher than the interest rate on my mortgage so it isn't exactly cheap for a long term financial product.

I guess it depends on what other debts you have.

It’s similar to my mortgage. I don’t have any other debts, but figure my mortgage is the best one to clear as it won’t get wiped and the rates are similar.

OP posts:
Original poster
ChoppedChorizo · 11/02/2025 19:38

BornSandyDevotional · 11/02/2025 19:24

Do you earn above the threshold? Or are you just not paying it?

Show quote history

I earn above it. I pay around £262 pcm, it varies slightly as I have SE income. This is only relatively recent though as I’ve only been back at work 3 years after my last baby.

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