AIBU to ask if you have a Student Loan, what is the estimated time-frame of clearing it? Was it worth it?

[christmastreesparklex]

Hi all

I graduated in 2013 and have £10,000 remaining on my student loan (Plan 1). I have calculated on my current salary that it will take me approximately 7 years (assuming a year out for maternity leave in the future) before I will have paid it off completely. On my current salary it is deducting approximately £150.00 each month, so definitely a noticeable deduction. The interest on the PAYE statements is currently 1.75%.

I am in two minds whether to start making additional payments to pay the salary off early to reduce the total amount paid due to the interest. I am also mindful that the earlier I pay it off, the higher my monthly salary will be in the future, particularly during the years I (hopefully) have children and nursery fees will be extortionate! I was looking for some advice if possible and also welcome a general discussion from those who also have a loan- if you are interested, you can calculate an estimate on when you will pay the student loan off via the link below:

www.student-loan-calculator.co.uk/

For those who don't mind sharing (AIBU!) what is your estimated time period for you paying off your Student Loan? Do you think it was worth the loan and would you have still gone down this route if you could go back in time? For me personally, I did a vocational university degree so I would not have been able to progress in my career without it, so I would say it was worth it! My DP does not have the same experience and is in fact in a completely different field which did not require any degree!

For those who have already paid their loan off, has it been noticeable on your monthly salary? I imagine it must have felt rewarding having made the last payment and finally free of your student loan!

I know with the Plan 2 student loans, the course fees and interest rates were higher and therefore; a considerable amount of students will not make the full payment in the time period before it is wiped. I suppose in this situation, making early payments would not be advised as you may end up paying more?

From those few posters who explained they will likely be paying off their loans until their retirement.. I think its ludicrous! Its not a loan its a life time commitment and most of that payment will be interest!

Students are sold the dream and they come out feeling deflated with little job opportunities unless fortunate having studied a vocational degree / be fortunate to land a job. Even then a large percentage of students don't end up finding a role in their chosen field and times are getting tougher.. yes they dont have to start paying it back until the threshold is reached but you would expect most graduates who have dedicted time, money (earning potential lost) and effort etc would hope to be able to earn within 5 years of graduation more than the threshold!

Sorry I have turned my own thread into a moan thread and this is not my own situation but I feel so sorry for those coming out with degrees over the last few years!

Graduated in 2013 and have about £22k owing split across Plan 1 and Plan 2. I'm 48 and pay around £30 a month so I'll never pay mine before it gets written off. I don't even think about it tbh.

OP
It is a 9% graduate tax
not a loan
it is expected than only 40% will be paid off in full

as I say, making extra payments is pointless
if you earn enough to pay it off, do so
but you pay 9% of your salary
whether your debt is £1000 or £100,000

Graduated 2014 with £35k plan one loan (1.1% rate not 1.75%).

Should be paid off by the end of the tax year. My income fluctuates but in the last two years payments have ranged from £250 a month to £800 a month which I am looking forward to keeping.

Got mine after 2012. Not earning enough. Probably won't now.

Took out loan aged 57.. for first degree.. will graduate aged 61.. retire at 60 on a pension of £23k.. income will increase at pension age (66 for me) .. will never have to pay back .

I haven't checked my projections recently so I can't remember...I have two loans though, one under the old plan and one on the new.

I don't regret a penny - both degrees have been the most fulfilling part of my life.

asdf
Not many people average a £66k salary like you though

@BernadetteRostankowskiWolowitz

Why would you want to pay it off early?

Interest. It get bigger the longer you have it.

Qualified 5.5 years ago, including some maternity leave. Have already paid it off but that does include one overpayment at the end.

Can anyone help me figure out how to find my balance? Graduated 2005 and started paying back probably in 2009 - have moved house and must have never updated details as haven't had a statement or letter from student loans for years! What's the best way to find out this info. I haven't got any old letters from SLC so no account number or reference etc

Hahaha I will never pay it off!
Did a 4 year degree beginning 2012, so £36k tuition fees alone.
Plus the maintenance loan as I lived away from home, probably around £4K a year (which is quite a modest amount compared to what many of my friends were getting!)
So in total graduated with around £52k of debt plus interest in 2016.

Interest is obviously accrued from the moment you take out the loan, even though the earliest you can ever pay it back is the April after you graduate, so those 4 years of interest always annoy me a bit.

My loan accrues about £200 interest every month and I currently pay back about £60 per month, on a £33k salary, which is more than most of my peers earn only 4 years out of uni.
So at the minute I’m pretty far from even clearing the interest, let alone the lone.

I had one friend who’s parents were very high earners and paid her tuition fees. Always considered that a waste of money - given I’ve just demonstrated how much you actually pay back, they’d have been better off letting her pay the loan back and giving her that £36k for a house deposit

• Who’s = whose

Ugh lone = loan, it’s past my bedtime!

Graduated in 2007 with around £15k of debt. Have £700 left to pay off! No longer make payments through my payslip, have a direct debit set up instead so I don't overpay and have to reclaim

That I kept my money in savings rather than paying off my loan meant that when I was unemployed and pregnant with ds we could afford to get a mortgage with a decent deposit.

Having children will mean spells of low income unless you go back to work fast. Money on savings will give you choices in that time.

@mumtobabygilrl

If you log into student finance England (or whichever nation you went to Uni) you can find out your existing loan value, you will need to use the email address you used to log in or customer reference number

@lurker101 Thankyou although I've tried that and it doesn't recognise me. I know it's the right email address though

Graduated in 2010 with around 27k in loans - Plan 2. As long as interest rates don't rise significantly, should be paid off in 2027 - 17 years!
It's only been the last few years that I've been earning enough to pay more than the interest.

[quote christmastreesparklex]@ZoeTurtle
@FlippinNoah

ahh I bet that felt amazing and I can imagine its a noticeable amount being paid into your account each month now there are no longer SL deductions![/quote]
Yes, it's nice! I think I was having about £250 deducted each month.

I probably wont. I earn just under the threshold to repay now.
I dont use my degree. But it was worth it to get me out of a house that nearly killed me and give me the freedom to date DH who parents didn't approve of.

@stackhead

Graduated in 2010 with around 27k in loans - Plan 2. As long as interest rates don't rise significantly, should be paid off in 2027 - 17 years! It's only been the last few years that I've been earning enough to pay more than the interest.

Just so you know - you are on plan 1 ;) (plan 1 is everything pre 2012, plan 2 is 2012 onwards).

I finished three years of undergrad in 2019 did a year of masters and transferred to PhD so I've got 2 years left. Plus a possible PGCE afterwards.

When I finish I'll owe about £105k.

Presumably they'll clear it when I die...?

Well according to that calculator I should be done in two years, but I don't think it is accurate for me as I have two loans, one plan 1 and one plan 2, and I'm not sure if my repayments for one affect the other. Does anyone know how that works work (very niche question I know as not many people would have been able to have two loans).

@DebbieFiderer

Well according to that calculator I should be done in two years, but I don't think it is accurate for me as I have two loans, one plan 1 and one plan 2, and I'm not sure if my repayments for one affect the other. Does anyone know how that works work (very niche question I know as not many people would have been able to have two loans).

Your repayments go to paying plan one first, then once it’s cleared off they go to plan two.