UK Student Loan Repayment Calculator

When it comes to being in debt, the wisest thing to do is to pay it off due to interest accumulating over time. The common sense approach to debt is to reduce it as quickly as you can manage so you reduce the amount extra that you pay back to the lender. In the special case of student loans however this logic doesn’t really translate over. Student debt is very different, which is why we have linked this article to a handy UK student loan repayment calculator

 Your student loan stands out as probably the best terms you will ever see:

  1. You only start paying back after you earn £18,330 or more.
  2. Therefore if you lose your income you stop paying
  3. The loan is closed after 30 years or you reach 65, whichever is sooner
  4. No one will inherit your debt

All these points mean that there is an exceptionally good buffer between your bank balance and loan repayments. The knock on effect of this means repaying your student loan at a faster rate in order to clear the debt earlier could actually make you financially worse off.

 

UK Student Loan Repayment Calculator

Use a student loan calculator to see how long it will take you to pay off your student loan based on your salary. This will also let you know how much you will end up paying in total. Make sure to enter a few different loan repayment amounts, you might be surprised at how little difference increased payments make. Like we have said elsewhere, paying off your student loan early is unlikely to be a good idea unless you will be a very high earner.

 

UK Student Loan Repayments – 2019 and beyond

As 2018 came to a close, in the midst of the distraction of Brexit, the UK government actually sold student debt to a private investment company called Income Contingent Student Loans 2(2007-2009) Plc.

As their rather odd name may suggest, they now hold part of the debt that students began repaying in 2007 to 2009. Although a group of investors will now profit from loan repayments, luckily for students nothing changes:

  • The amount you repay will stay the same
  • Payments will still be taken automatically
  • The interest rate will not be changed by new investors
  • If you are not making repayments yet the Student Loans Company will still manage your loan

 

Paying off your Student Loan in Full

If you are in the fortunate position of entering a guaranteed high income job with accelerated salary progression then paying off your student loan in full may be the right choice for you. If you do want to pay off your student loan you must call the Student Loans Company on 0300 100 0611 (Mon – Fri 8am – 8pm) or if you live in Wales 0300 100 0370 (Mon – Fri 8am – 6pm) to get an up-to-date settlement figure.

If like most people you’ve been repaying through your salary, before you call them make sure you have to hand:

  • your last P60
  • all your pay slips for the current financial year

Without the above they will not be able to calculate an accurate settlement figure for you.

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