Just paid off my student loan

[ChiefClerkDrumknott]

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?

@SunnyKlara
If you look at my earlier posts you will see my DD did too. But that was plan 1. So much lower tuition fees. I was actually responding to @RandomMess saying the loan had to be “repaid” when it doesn’t. Payments are made but that’s totally different. The final sum doesn’t make much difference to lower earners or stay at home parents. It’s written off 25 years after first payment. It’s still the only way most DC get to university and we shouldn’t scare them off by takes of repaying loans snd not explaining they don’t work like bank loans where the expectations are totally different.

@camperqueen54

I'm pretty sure Martin Lewis says it makes no sense to pay this off early but hey ho!

That applies more to Plan 2 where most people won't ever pay the full amount off completely even if they earn quite well. So making overpayments is pointless because you're just paying more than you need and it won't make a difference to the end outcome - you'll either retire or go past 30 years and the remainder will be written off. Which is why Martin MS reframes it as a graduate tax.

Whereas with OP and most people on Plan 1, they will pay it off, and probably with 20 more working years to go, so overpayments (plus the fact you can't avoid them with overtime anyway) will mean from now on she won't have 12% deductions every payslip.

@ElliotGoss

DH only did 2 years at uni. It still costs us £500 a month. For what?! He didn't even get a degree. Such dead money.

For what? Um the tuition and support materials (library access, student union membership, etc) he had access to, plus if it's also his maintenance loan, food and accommodation! All of which cost money so it's hardly unfair he has to pay it back. Who else should pay for it if not the person who benefitted? The fact he didn't graduate is irrelevant.

That must be a huge relief to have paid it off!
DS is in his 1st year of university. When he finishes, is he able to pay the loan off straight away if the money is available?

@StiggyZardust
He really should think twice about that. What are his earnings likely to be? It’s not a bank loan. It never has to be paid off. What else could he do with the money? Deposit for a property? Pension or savings? It really depends how well off you are and how he snd you manage money. If he’s got £50,000 spare he could pay it off but if he doesn’t have a property, £50,000 isn’t a bad deposit.

[quote TizerorFizz]@StiggyZardust
He really should think twice about that. What are his earnings likely to be? It’s not a bank loan. It never has to be paid off. What else could he do with the money? Deposit for a property? Pension or savings? It really depends how well off you are and how he snd you manage money. If he’s got £50,000 spare he could pay it off but if he doesn’t have a property, £50,000 isn’t a bad deposit.[/quote]
^this.
Far better to use any funds towards a deposit for Plan 2 grads.

@SunnyKlara Good luck! SLC haven’t been too bad with me but I’ll have a look next month to to check that the payments have actually stopped