McStick
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i would pay it off as soon as possible. people who only want to pay it off when they have to are the reason the economy's in such a mess because everyone is up to their neck in debt and don't want to pay it off. process is a follows:
1. People borrow to buy big house, lots of furniture, nice car.
2. Everbody is spending loads of money, so the economy grows.
3. Inflation goes up, hence interest rates go up.
4. people can't afford to pay back their debt and so get worse in debt.
5. people go bankrupt.
Moral of the story is - always live within ur means! |
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Knownow't
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Invest your 14K and pay it off through PAYE the interest rate on the student loan is so low that there is no point in paying it off as a lump sum.....use that money to pay off such things as credit cards which have an APR of up to 29% |
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Jody W
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balance what you would earn if you invested the money with what you would pay in interest on the loan. Or if you have something better (worthwhile) to spend the money on then I wouldn't worry about it too much, I had enough money to pay off mine but I used it as a deposit on a house instead |
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boo
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not sure what u mean by pay it off? u have to pay it off eventually. if u mean that you've got 14k spare then yeah if u can spare it pay it off, but they get their money and are happy with taking it off your wages i dont worry about my student loan, they take it like they take ur national insurance payments. It'll go, invest the 14k into ur future and making another 14k, then when u got enough pay it off. |
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Matthew O Hibernian
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I just paid off my student loans in December and my advice would be that it is likely to be the lowest interest rate on borrowing that you will ever get. If you have £14k spare I would start by paying off any other debts (credit cards and overdrafts) and the student loans last.
Also just think that £14k would be most of the way to a nice deposit for a house or flat maybe? When will you ever have that again?
However, if the choice is pay this debt off or just waste it having fun (holidays, clothes, etc.) pay off the debt! |
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weeleesie
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I have a similar size student loan. I voluntarily paid back £2k, now I wish I hadn't! It's not as if they chase you for the money, so just do it through PAYE. You don't get anything deducted til you're earning over £15k. |
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alatoruk
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tricky one this. student loans are the lowest rate of borrowing you can get, but you are still being charged interest.
if you dont need the money then I would pay it, or a substantial part of it, off to reduce the total interet in the long run. |
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elaeblue
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Student loans can be such a pain I think I would pay them off. That way if you should go thru a hard time somewhere in the next few years then you dont have this one to worry about. They are one of the few that can take your income tax refunds and can cause you all kinds of problems should the time come when you cannot pay. So I say pay them off if you can.
OK so having read some of the others I guess I should state that I live in the US and what I am talking about is if you live in the states. |
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Beastie
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Hah, do like my mate Zoe did. She got a full sized student loan when they first started... Booked a flight to Australia with it, worked there for a year, met a nice Aussie bloke, got married, hasn't bothered coming back.
Student loan, what student loan?
Or go study in Scotland. You can still get student loans if you want them but there's still the grant system in place as well. And it's a better education anyway. |
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mj23way
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I would pay it off right away so I wouldn't have to worry about it in the future. If you want to build up good credit the APR should be low so it's your choice. If you postpone paying it in full at least make bigger payments. |
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feline_fine551
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I have a loan of a similar amount and pay it off my salary each month. I see it as another tax-like deduction.
I have no intentions of paying off extra towards it because I live in the hope that some sensible government will wipe out student debt at some point! I
t's the most ridiculous funding arrangement ever - young people coming out of university tens of thousands of £s in debt. What a way to start your adult life!
Also, the loan has no effect on your credit rating or ability to get another loan/mortgage etc so there is no benefit to paying it off for that reason. |
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Freudian Myth
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Would you pay £100 back to your mate??? |
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Kατiε
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If I had the money, then I'd pay it off. Maybe you're not one of these people but I can't rest until I know I'm not in debt to anyone, even if it's just a couple of quid. But think that next time you get your wages how much better it will be not having a huge chunk going to pay off that loan! |
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candyapple58
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It depends, is that all the money that you have? If so, pay off at least half, and keep some money on hand for emergencies. If you have enough money to pay it all off and still have some on hand, that is the best way to do it. Get rid of debt asap!!! |
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Kip
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I would pay it off in a heartbeat. That would be such a weight lifted from my shoulders, knowing that I was debt free and would not have to pay it back for the rest of my adult life. I would then be able to concentrate on my next financial hurdle, like buying a house... |
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Julie
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The quicker you pay off any loan the better of you are. |
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ROBIN HOOD
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if youve got it then pay it
the government took that money out of my wage packet without asking |
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august
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you could use the money you have to put a deposit on a house - thats an investment if you buy wisely. The student loan has such a low interest that you won;t really notice it being taken each month.
I have paid off debt in the past to that level only to rack up more and I wish I had invested so there was something to show for it. Your house will slowly build up equity which you can use to pay off the student loan or keep as an investment. In the big picture 14k is not a lot of debt. |
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