Does anyone know much about student loan repayments? I'm wondering if it's worth paying off in full.
I started uni in 1999 and now have just over £3000 owing.
I recently went part-time following maternity leave, and although I earn well over the £17500 threshold for repayments, I have salary sacrifices for childcare vouchers and pension, which take me just under the threshold, so actually have no student loan deductions. In April I'll get a bonus, so will probably have a deduction made then. Also I'll probably get a pay rise in April, which may push me over the threshold - but does the threshold increase each year? Even so, the monthly payment would be minimal, maybe only a couple of £.
I'm in a position that I could clear the balance now, but I don't know if it's worth doing, seeing as it isn't currently a financial drain. In the back of my mind is the fact the amount owed will now start going up, as interest each year will be more than my payments and if I do go full time again in the future, I'll have to pay again each month. At some point it gets written off though?