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Original poster

Just paid off my student loan

82 replies

ChiefClerkDrumknott · 15/02/2022 13:38

After taking it out in 2000 😱 Had a few years where I didn’t pay off anything due to not earning enough. Then over the last 2 years or so I’ve managed to get a lot of overtime and chipped away at it.

On the one hand I’m pleased it’s done, on the other I’m horrified at how long ago it was that I first had it. 2000 was like 8 years ago, yeah?

OP posts:
BernadetteRostankowskiWolowitz · 15/02/2022 13:39

I'm pretty certain the interest on mine is higher than the amount taken off my salary. It's like a never ending tax.

DistrictCommissioner · 15/02/2022 13:41

ugh. I look forward to DH student loans being paid off. We will have an extra £300 a month! Think he’ll finish paying it off just in time for DC1 to go to uni…

Original poster
ChiefClerkDrumknott · 15/02/2022 13:45

It does seem never-ending, I’m really fortunate that I managed to do it. Just in time for the payments to go on energy bills instead Hmm So I probably won’t see a difference tbh.

I just wanted to have a little 🥳 moment on a wet Tuesday

OP posts:

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pumpkinpie01 · 15/02/2022 13:46

Yay ! Well done ! 😀

OhNoWhatYouGonnaDo · 15/02/2022 13:51

I paid mine off last year. I started uni in 2005. I actually paid the last few thousand off as a lump sum, because I was going to be paying it off within a year or two anyway and thought I might as well save myself the interest. I was the last year group to only pay £1k in tuition fees. Now students pay £9k a year the loan is much more like a graduate tax for most.

amusedbush · 15/02/2022 14:00

Congratulations, that's great news! I'm lucky that my undergrad was free (Scotland) and I got alumni discount on my MSc, which brought the fees down. I took the maximum £5500 tuition loan, which covered a big chunk of the cost because I didn't go to a very fancy university Grin

I haven't started paying it off yet (I went on to further study because I'm a glutton for punishment) so I have that to look forward to!

RoyKentsChestHair · 15/02/2022 14:04

Congratulations!! What a weight off to finally be free. My eldest was born in 2000 - It’s a long time ago!!

I’d always thought it was interest free Shock - what are the interest payments like?

JackieCollinshasnoauthority · 15/02/2022 14:11

It's 1.25% on plan 1 student loans. Interest rate is higher for later loans but the threshold to pay off is higher.

Personally I'm determined to get to retirement without paying it off but it's unlikely.

JustSmallFry · 15/02/2022 14:12

Well done. It must be a relief!

Original poster
ChiefClerkDrumknott · 15/02/2022 14:15

Thanks all, I’m so chuffed 😁 Mine was 10k in all which I worked out was the equivilent of roughly 18k now!

@RoyKentsChestHair Interest is not high but it’s there. Mine was 1.10% Not sure what it is now

OP posts:
Arewethebadguys · 15/02/2022 14:16

This is HUGE!!! Well done OP if you don't crack the champers tonight I'll be very disappointed!

Original poster
ChiefClerkDrumknott · 15/02/2022 14:18

@Arewethebadguys Well, I wouldn’t want to let you down 🤣🍾🥂

OP posts:
AwkwardPaws27 · 15/02/2022 14:26

@RoyKentsChestHair

Congratulations!! What a weight off to finally be free. My eldest was born in 2000 - It’s a long time ago!!

I’d always thought it was interest free Shock - what are the interest payments like?

Plan 2 interest varies depending on your income (www.gov.uk/repaying-your-student-loan/what-you-pay) but is the Retail Price Index (RPI) plus up to 3% (this bit varies).

The kicker for me is that they charge you 4.4% while you are studying - I really think it should be interest-free/RPI only whilst you are a student. I had missed that bit when applying and was a bit gutted when I realised the debt I thought I was graduating with was actually even higher than I realised.

I worked around uni & didn't take full loans, so mine is "only" about £43k Hmm
Wish I'd gone to uni at 18 (before the increase) instead of 26, but you live and learn!

thereinmadnesslies · 15/02/2022 14:33

Yay! I’ve got about 1k left to go and I should finish paying it off by the summer. I also took mine out in 2000 and I’m kinda shocked how long it’s taken to pay off, but there was about a decade of maternity leave and part time work where I was under the repayment threshold.

Original poster
ChiefClerkDrumknott · 15/02/2022 14:49

@thereinmadnesslies Good luck! Mine took ages too as I floated around a bit after uni before falling into a career. I was at the very bottom and worked my way up a few rungs, so didn’t pay much off to begin with.

It doesn’t seem real when you sign up for it but 20-odd years later, it’s been a slog to get rid of it!

OP posts:
PanickedE · 15/02/2022 14:58

Congrats! I doubt I will ever pay mine off!!
It’s £116,000 Sad

AwkwardPaws27 · 15/02/2022 15:03

@PanickedE

Congrats! I doubt I will ever pay mine off!! It’s £116,000 Sad
I feel this. Mine is less but I accumulated about £5k interest on it while studying (rates were over 6% then). I'm on a graduate scheme and accumulate more interest each month than I pay off. I think for most Plan 2ers, Martin Lewis is correct in framing it as a tax.
wendz86 · 15/02/2022 15:11

Well done OP! I will hopefully have paid mine off in about 4-5 years, can't wait to have the extra money. Mine was around 18k in total, finished uni in 2008.

Original poster
ChiefClerkDrumknott · 15/02/2022 15:20

@PanickedE 😮 That makes my paltry sum seem a lot less!

OP posts:
fussychica · 15/02/2022 15:20

DS graduated in 2014 with a Plan 1 loan but then did a postgraduate course which came under Plan 2. He would liked to have paid one off before the other as one is higher interest but the payments are spread equally so he's barely made a dent in either Sad. He just accepts he's going to be paying what amounts to another sizable chunk of tax forever.

kirinm · 15/02/2022 15:22

I paid mine off a couple of years ago. After 17 years!

DuneFan · 15/02/2022 15:25

Congratulations!!!

I remember really clearly the day i phoned the SLC from a rainy car park in the outskirts of Birmingham to make my final payment. Such a great feeling!

I also was on £1k per year fees and can't see how anyone on the higher fees will ever pay it off. Crazy.

user1471504747 · 15/02/2022 15:43

I think it’s unfair anyway that SL accumulate interest while the student is still studying, but it’s even more unfair for the recent Covid cohort to have paid fees + interest for not very much in return.

Original poster
ChiefClerkDrumknott · 15/02/2022 19:24

@DuneFan I’m slightly stunned that I managed it!

Thanks all, I was so excited earlier 🤣 I never realised students pay higher interest whilst studying, that’s mad

OP posts:
PanickedE · 15/02/2022 19:41

@ChiefClerkDrumknott
The joys of a 6 year degree! With another year to go Grin
The way I see it, if I earn enough to pay a substantial amount back then I will be on a good wage (NE England) and hopefully comfortable so I can’t complain!

But well done to you!