Weird around the repayments - for me, they were never going to get it right anyway. RSU vests mean my pay varies wildly month to month, but the amount they settled on was still much much lower than what I’d usually pay back on a normal month with my base salary-only.
There’s no tax benefit to this. You pay income tax on the amount regardless of whether it’s taken from your salary or via DD.
The way you think about the loan changes significantly if you know you definitely are going to repay the loan in full before it gets wiped, especially when you’re within the final year of repayment. There’s an interest benefit to paying off the loan earlier vs holding the money in savings.
Scottish student at a Scottish university, so I didn’t have any course fees to pay. At the time they were around £2800 I think per year for non Scottish students so would have added an extra £8000-£9000 to my amount if I had to pay
I know a lot of people here are saying don’t pay it off and to just look at it as an extra 9% tax… Why would you want another 9% tax going off your salary when we already haemorrhage so much money to HMRC as it is?
I paid mine off early because ANY amount if interest paid to somebody else is money NOT in your pocket.
Some have even said make your credit cards a priority, which yes is true if the interest is higher on them versus the student loan
I paid mine off 2 years early as I was in a position to do so and there was nothing better than finally not having to see SLC with a £200 deduction on my payslip
If you’re in a position to do this now, do it, trust me the feeling of not having to hand money back to SLC is good!
I think it’s usually because people won’t pay it off no matter what. If you’ve got 60k worth of debt but only just earn over the threshold likelihood is you’ll need all the money you can for mortgages/loans/etc and as no one’s coming over from student finance to repo your possessions you can essentially imagine it doesn’t exist.
If you’re a higher earned with spare cash and you’re definitely earning enough to pay it off then it can definitely make sense
For example, I was suggesting that there are plenty of other factors to consider. As you mentioned, how much you owe, time remaining, what plan you’re on, how much you earn, mortgages, loans, credit cards etc.
Too much to list but I’m sure the OP gets the gist by now.
This is mine this morning. I am hoping they take it off my salary next month and from what I’ve heard from another colleague is that they will send you a cheque for the refund at one point apparently
Would love to see how much i will make more each month after June
Congratulations to all those that have paid off their balances, very envious. I envisage I’ll have paid mine off by the end of next year (unless I win the lottery of course…).
They will, but wouldn’t you prefer to have more time with your money and not have to deal with claiming it back? If you can afford to, I’d call them up and pay that little bit off. They’ll send a stop notice to your employer so they stop taking deductions. If you do it in the next few days it should (but it’s not guaranteed) be in place for your next payslip.
Also keep in mind that the amount you’re paying in interest on the student loan (I think 5%) is more than you’ll be earning in most savings accounts so you’re at the point where it makes a lot more sense to pay it off rather than save.
It’s the amount you see currently being deducted. The amount you see deducted on your payslip has already been taxed.
Are you sure? because I was told that given how slow they are even if I make a one-off payment online they might not update their systems in time and I will probably still get charged in the next payslip
