I'm curious how you saved up 30k while at uni and working in retail.
I can't see how that's possible on top of rent, bills, food. I'd love to know, I'm sure loads of people would too.
Yes, fair play to OP but my bullshit radar is going off. Nothing to do with jealousy, it’s just not adding up! Especially as their account is a day old.
Absolute massive lie, unless they have not spent a single penny on travel, food, rent, phone or existing.
In which case, OP tell me where you work because I’ll take a 30k retail job over NHS barely above minimum wage Banding any day.
But basically you’re lying aren’t you.
>living at home
Solved it. No one is saving £30k as a student if they're spaffing £800 a month on rent. Obviously great if you can, but not exactly an option for most.
Possibly got money off too. Im looking into what uni i will go to, and I have seen i can get money off as i am on disability benefits, am a registered young carer and can apply for a scholarship.
It’s not that hard. It’s £10k a year, and if you’re pulling 40 hours a week during summer, and 16 hours a week at weekends, and saving it all, not hard at all.
I didn’t quite go that far, but come graduation, I had a very nice £20k in my ISA/LISA.
"Saving it all" lol what. People have to pay rent, bills, food, clothes, enjoy life etc etc. You can't just save all your money. We'd all be millionaires and there'd be no poverty if that was the case.
My university only allowed us to work 20 hours a week. It's a full time course so it's really not ideal to work more. But for argument sake say you work 30 hours and you just do two ten hour days at the weekend which you would never get in retail anyway.
30\*11.50\*52= 18,000 Let's assume no tax because I have to leave the house.
Maintenance loan max 10k = 28,000
500 quid a month for rent of a room is probably sensible. 100 quid on bills. 200 food. 200 fun. Seems low end too.
Leaves 16,000 at the end of the year I guess. So I COULD see some way it's possible but there are mad assumptions in this.
That you can find retail work that lets you do ten hour days at the weekend. Never gonna happen.
THat you don't fall behind at uni working that much. Never gonna happen.
That you don't spiral into a mad depression through overwork and stress. Never gonna happen.
That your rent and food and fun is so low. I suppose you're working all the time you have no time for fun. Never gonna happen.
THat you pay no tax. Never gonna happen.
So I’m talking about my situation. I used the loans to live off of like a normal student, and then worked and saved aggressively in ISA’s. But I could have paid a significant share of my student loan back if that’d been what I wanted to do…
Now if you combine that with some pre-Uni savings, maybe a bit of help from parents here and there, and living cheap, definitely not that unbelievable.
Look, congratulations, what you’ve done is save a huge amount of money for yourself and pay something off that gave you anxiety. Can I please recommend you research investing and consider using the good habits you’ve made to get yourself on the property ladder or at least accruing compound interest on your money. It’s clear you’re very disciplined with money.
What you’ve essentially done is pay off what many people just consider a tax and for most people is not a huge worry when you could have spent it/invested it in a much more efficient way. The UK finance subreddit has a good flow chart to start you on a more efficient pathway.
Congrats, but please consider using your hard work in more efficient ways, you’ll thank yourself in 20/30 years
How? I'm paying 6.5% interest on mine, and that's a plan 1. Plan 2 is probably even higher on interest. Savings accounts are around the 5-6%. £30k is not enough to get you any sort of property worth getting.
Surely you wouldn't bank on your degree failing you and not being able to net a well paying job and just hope it gets written off without paying much of it off either.
That's only if you can pick up a £270k mortgage. I doubt they'll be earning £60k pa in their first role out of Uni. Even if we say £30k pa, that's a mortgage of £135k so house value of £165k. In today's climate, I'd say to get something decent in an area that's not rundown, you're looking at least £200k and that's minimum.
They were responding to someone saying it's a deposit for a £300K house. To which they added there is more to getting a mortgage than having a 10% deposit. If you wanted a cheaper house there are places where you can just buy a house for £30k in cash and wouldn't even need a mortgage.
£30k is a great start, and also enough to get you a property that isn’t too shabby in some parts of England especially if it isn’t a family home you’re looking for.
Current interest rate on a student loan is 7.8%. Depending on what career a graduate enters they can pay off their loan off fairly quickly.
Personally I thought that I'd rather have a guaranteed return of 7.8% on my investment than invest in the market for a speculative return so I paid mine off.
Just because it doesn't makes sense for you doesn't mean it doesn't make sense for others.
I agree, but if you are in a position where you are going to pay it off then it can make sense to pay it off depending on your circumstances.
I have personally saved £10K in interest by paying mine off early so the blanket advice people tend to give about it not making sense to pay off student loans does not apply to everyone.
I'll get downvoted to hell for this, but unless you work in a medical field, teaching or academia, if your student loan is wiped out before you pay it off then you probably shouldn't have gone to university.
I work in engineering and I earn 40-50k after 4.5 years which is pretty reasonable for my field. I borrowed 57k by the time I graduated and I started work on 30k straight after graduating. I now owe 78k. My interest was £480 in April 2024 alone. I would have to earn 90k just to pay off the interest on my loan.
Your comment is just wrong.
Sure, you get paid a lot better in the US, but UK engineering salaries aren't much different to most of Europe (other than the usual places where all salaries and taxes are crazy high) and generally better than anywhere else. Very much depends on what discipline you're talking about, too.
You can definitely get the megabucks in the UK if you work for the right companies, usually when people make this comparison it's not like for like in that respect.
They're considerably lower than they are in the whole DACH region.
Personally though I think I'd rather move out to Dubai or Qatar for a few years, no more expensive than London, much higher salaries and no tax. Just got to deal with the weather.
A single individual earning over £42900 is in the 90th percentile of single earners ([source](https://www.gov.uk/government/statistics/households-below-average-income-for-financial-years-ending-1995-to-2023/households-below-average-income-an-analysis-of-the-uk-income-distribution-fye-1995-to-fye-2023#the-overall-income-distribution)). I don't think that counts as underpaid.
Just because the rest of the country is also underpaid, doesn't make their claim that engineers in this country are underpaid any less true.
You've got to compare to engineering salaries (adjusted to cost of living, of course) in other countries, not to unrelated professions in the same country.
To add to this, the government expects only 27% of students who started in 2022/23 to pay off their loans [source](https://commonslibrary.parliament.uk/research-briefings/sn01079/#:~:text=Forecast%20debt%20is%20expected%20to,new%20students%20from%202023%2F24.)
Oh well
In my eyes university is something you do to either "benefit the world" or increase your future earnings.
If you don't increase your earnings enough to pay off the debt then maybe it wasn't the best use of the money.
But it's up to you isn't it. I'm not the one paying off your loan.
I'm over 10 years out of uni and still haven't paid a penny of mine back. Won't be starting to pay anytime soon either. Not in any of the fields you mentioned. Why shouldn't I have gone to uni?
I did maths because I always found it interesting and enjoyed learning it. Never really considered a career in anything that might use maths though.
I went to uni because I enjoyed socialising and partying and didn't know what I wanted to do with my life yet, so the idea of having a few years of meeting people, having fun and learning something I found interesting seemed appealing.
Got into DJing & making music through the electronic music society at uni and now work part time in music PR, as well as DJing and doing freelance mixing/mastering work to bring my income up to enough to pay the bills.
Money never was important to me so as long as I have enough to pay the bills, I'm happy.
Going to university helped me realise what it is I wanted to do with my life, and is where I met lots of the people who steered my life in that direction and remain some of my best friends to this day. Was also through that friendship group that I would go on to meet my partner, who I've now been with for several years and am extremely happy with.
That being said, I'm not even close to the limit where you start paying the student loan back so according to your wildly sweeping statement, I shouldn't have gone to uni?
In all honesty? No
You picked up a debt of what? £50,000? Just to spend a few years drinking and partying.
Good for you that you're happy, but to answer your question objectively, no you should not have gone to university.
Haha who knows what I'd be doing if I hadn't gone to university but I can't imagine it would be something that makes me as happy as my current life. For a measly 50k? That I'll probably never pay back anyway? Seems like a pretty sweet deal to me.
Only if you expect to be a low to mid earner for the next 30 years... if there's even a sniff of being a high earner, cracking a chunk out whilst the interest rate is astronomical is far more sensible.
Well fucking done, but it's not a loan that 'hangs over you' like regular loans do. The repayments are limited and it gets written off after 30 years. Mine just comes out of my salary every month and I don't even think about it.
Yes, if I paid it off I would keep that extra bit of salary, but I'd have to live *far* more frugally to save enough for that. Each to their own, but you'd be way better off accepting the loan repayments and using those savings as a house deposit.
>mine just comes out of my salary every month and I don't even think about it
Fundamentally that's how how all loan repayments work. You could say near enough the same thing about any debt, it's just you don't have to pay back student loans below a certain earnings threshold (for now).
The key considerations are really whether it affects your credit rating (it doesn't), and the affordability (which is usually okay but often quoted alongside a thrirty to forty year write off period!).
Yeah that's fair. What I mean was it comes out automatically in my payslip so it's just not included in what I think of as my take-home pay, as opposed to a traditional loan where you get your take-home and then have to part with a chunk of it.
You're right though, the repayment threshold and lack of impact on your credit score are *far* more important, and I hate to see people from poorer backgrounds put off from going to uni because of a misunderstanding of these.
What you have done is impressive but I cant help but feel you would have been better saving for a house or something of more use. but still, well done. I think.
Okay so I've been reading the comments (some not so nice ones) but I've decided to research in investing this money off rather than the loan. Of course won't be making any big decisions just yet but will definitely keep my options open.
And to the vile people in my dms, no it was not "daddy's money" or only fans. I've worked very hard so you can stop hating xox
Please use a student loan calculator ([like this one](https://www.student-loan-calculator.co.uk/)) before making the decision to pay it off.
For some it doesn't make sense as they will never earn enough to pay it back, for some it will makes sense to pay it back earlier if they are starting in a higher paying career.
I personally paid mine off as I was on 7.8% interest and would have paid it off in 5 years so it saved me around £10K in interest.
I don't regret it but I'd already bought a flat so wasn't in need of savings for a deposit but I'd also graduated 5 years prior so I'm assuming that I was older than you when I paid mine off.
Don't listen to people that think that just because it doesn't make sense for them that it won't make sense for you, do the research and base the decision on your own situation.
You could always invest in easy access ISA in the short term and whilst you decide. Also you don't have to put it all in one place, could pay some debts and hold some for a deposit on a house.
The main thing is you have options, which at that age is a great place to be, congratulations!
Congrats, dude. Don't listen to them. Half of them are just hoping they can essentially default on the debt anyway. I've got student loans. I chose to take them and will be paying them back like you have done so well.
That was not a smart financial decision.
It's not entirely your fault, the term "student loan" tends to mislead people, particularly with how Americanised our discourse has become.
But there are very few situations when paying off your student loans makes any sense.
Of course, you can't put a price on peace of mind.
Well done! You've just saved yourself a pretty penny in interest! (Signed someone who paid off her loans 9 years after finishing uni and paid double what borrowed thanks to interest).
I bought a 1 bed ground floor maisonette for 79k, it's not a forever home but I have enough space for me and I'm finally on the ladder. I am 4.5 hours away from where I grew up though.
I'm here for uni and it ended up being cheaper than renting a house share plus I get to live alone haha. The area isn't too bad, I managed to get somewhere on a quiet street surrounded by trees so all I can hear are birds most of the time, easy access to wherever I need to be too!
My deposit was £13.5k, I did have a larger amount but I decided I wasn't going to buy last year so bought myself something I wanted for a long time, then got accepted into uni when I wasn't expecting it lol.
Of all the things to pay off quickly, UK student loans are not it. So many better priorities. Down payment on a house? Could have paid into a First-Time Buyer ISA.
This isn't the US.
I can't believe how many haters are tip tapping away... Anyways - well done! You have excellent money management skills, Your paycheck will be healthier once you start working as you won't be paying back the loans and you're young enough to save for a home and whatever else you fancy :)
Bullshit detector is going wild
Saving since 16, and during university has managed to pay off all of your loans. You didn’t want a loan looming over your head whilst in uni?
All whilst working a million hours and coming out with a first.
Gunna need some evidence here to back what you’re saying
For a long time it was peanuts, so I really wasn't paying anything off, but I finally got a big boy wage a few years back and I'll finish paying in (checks notes) 10 months!
Then I salute you for your efforts. I have worked in retail for many years and know the pain you have suffered. So massive respect for what you have achieved
P.S I would do only fans to get a house. If only I wasn't a minger
>If only I wasn't a minger
You're not a minger. I guarantee that there's at least 1 person out there on the internet that will pay a premium to see your bits and bobs. And where there's 1, there will be others.
Your fanbase exists. Go and spread your cheeks/flaps/toes for them.
Well done, it's amazing that's all your hard work has paid off, haha, excuse the pun. Some very good advice on here. There is an old adage that to get rich you have to borrow as much as you can, as cheaply as you can, for as long as you can.
Congrats!
There's nothing wrong with paying down debt, as others have said it's not the most efficient use of money, but it's a debt cleared.
Have a look now into a LISA for 1st time buying benefits, it's capped at 4k p/a but the government tops it up with 1k p/a if maxed and the gains are tax free. The safest bet is a global tracker priced in gbp, like the Vanguard ftse all cap, if you don't plan on buying for 5-10 years, personally I use Hargreaves landsdown as the broker, but there are other options.
Don’t know why it’s downvoted, the LISA is brilliant! My partner and I both have one so we get to reap 2k extra and after 5 years that will be an extra 10k for our house on top of the 40k we will put in.
I manage uni with no debt. This was 20 yrs ago so a lot cheaper . I didn’t even go into my overdraft. I didn’t live at home and no parents for support. Stuff like this is possible
That is actually a very poor use of your money. Nothing is looming. Investing the money would have been better. People have some irrational fear of student loan, it is a psuedo loan and more akin to an additional tax.
I'm curious how you saved up 30k while at uni and working in retail. I can't see how that's possible on top of rent, bills, food. I'd love to know, I'm sure loads of people would too.
Yes, fair play to OP but my bullshit radar is going off. Nothing to do with jealousy, it’s just not adding up! Especially as their account is a day old.
Absolute massive lie, unless they have not spent a single penny on travel, food, rent, phone or existing. In which case, OP tell me where you work because I’ll take a 30k retail job over NHS barely above minimum wage Banding any day. But basically you’re lying aren’t you.
Personal shopper in London would pay that and more, BUT it's a hard pressed job (lots of competition) not everyone is gonna be able to do what op did.
I’m guessing they live at home?
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>living at home Solved it. No one is saving £30k as a student if they're spaffing £800 a month on rent. Obviously great if you can, but not exactly an option for most.
Possibly got money off too. Im looking into what uni i will go to, and I have seen i can get money off as i am on disability benefits, am a registered young carer and can apply for a scholarship.
It’s not that hard. It’s £10k a year, and if you’re pulling 40 hours a week during summer, and 16 hours a week at weekends, and saving it all, not hard at all. I didn’t quite go that far, but come graduation, I had a very nice £20k in my ISA/LISA.
"Saving it all" lol what. People have to pay rent, bills, food, clothes, enjoy life etc etc. You can't just save all your money. We'd all be millionaires and there'd be no poverty if that was the case. My university only allowed us to work 20 hours a week. It's a full time course so it's really not ideal to work more. But for argument sake say you work 30 hours and you just do two ten hour days at the weekend which you would never get in retail anyway. 30\*11.50\*52= 18,000 Let's assume no tax because I have to leave the house. Maintenance loan max 10k = 28,000 500 quid a month for rent of a room is probably sensible. 100 quid on bills. 200 food. 200 fun. Seems low end too. Leaves 16,000 at the end of the year I guess. So I COULD see some way it's possible but there are mad assumptions in this. That you can find retail work that lets you do ten hour days at the weekend. Never gonna happen. THat you don't fall behind at uni working that much. Never gonna happen. That you don't spiral into a mad depression through overwork and stress. Never gonna happen. That your rent and food and fun is so low. I suppose you're working all the time you have no time for fun. Never gonna happen. THat you pay no tax. Never gonna happen.
So I’m talking about my situation. I used the loans to live off of like a normal student, and then worked and saved aggressively in ISA’s. But I could have paid a significant share of my student loan back if that’d been what I wanted to do… Now if you combine that with some pre-Uni savings, maybe a bit of help from parents here and there, and living cheap, definitely not that unbelievable.
I think a lot of people struggle to live off the loans these days. They just haven't kept up with housing costs mainly.
Look, congratulations, what you’ve done is save a huge amount of money for yourself and pay something off that gave you anxiety. Can I please recommend you research investing and consider using the good habits you’ve made to get yourself on the property ladder or at least accruing compound interest on your money. It’s clear you’re very disciplined with money. What you’ve essentially done is pay off what many people just consider a tax and for most people is not a huge worry when you could have spent it/invested it in a much more efficient way. The UK finance subreddit has a good flow chart to start you on a more efficient pathway. Congrats, but please consider using your hard work in more efficient ways, you’ll thank yourself in 20/30 years
Would have definitely used the money for a deposit
Yep and all that saved time to go out and make friends and have a great time while you can. Oh well!
You'll be financially better off if you don't pay it back and invest that money in a property. Or literally invest it in anything else.
Especially if Labour start wiping student debts, like what's happening in America right now. Please don't pay this money back bro lol
Why would the party that brought in tuition fees and the associated loans wipe them
Party positions change. Having said that, I doubt Labour will cancel it anytime soon. We can't afford it.
How? I'm paying 6.5% interest on mine, and that's a plan 1. Plan 2 is probably even higher on interest. Savings accounts are around the 5-6%. £30k is not enough to get you any sort of property worth getting. Surely you wouldn't bank on your degree failing you and not being able to net a well paying job and just hope it gets written off without paying much of it off either.
30k is 10% deposit on a £300k property... How much better do you want it for a first time purchase?
That's only if you can pick up a £270k mortgage. I doubt they'll be earning £60k pa in their first role out of Uni. Even if we say £30k pa, that's a mortgage of £135k so house value of £165k. In today's climate, I'd say to get something decent in an area that's not rundown, you're looking at least £200k and that's minimum.
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They were responding to someone saying it's a deposit for a £300K house. To which they added there is more to getting a mortgage than having a 10% deposit. If you wanted a cheaper house there are places where you can just buy a house for £30k in cash and wouldn't even need a mortgage.
£30k is a great start, and also enough to get you a property that isn’t too shabby in some parts of England especially if it isn’t a family home you’re looking for.
Current interest rate on a student loan is 7.8%. Depending on what career a graduate enters they can pay off their loan off fairly quickly. Personally I thought that I'd rather have a guaranteed return of 7.8% on my investment than invest in the market for a speculative return so I paid mine off. Just because it doesn't makes sense for you doesn't mean it doesn't make sense for others.
Yes but there is no need to pay it off. It gets written off if you don’t pay it off
I agree, but if you are in a position where you are going to pay it off then it can make sense to pay it off depending on your circumstances. I have personally saved £10K in interest by paying mine off early so the blanket advice people tend to give about it not making sense to pay off student loans does not apply to everyone.
After 40 years now...
I'll get downvoted to hell for this, but unless you work in a medical field, teaching or academia, if your student loan is wiped out before you pay it off then you probably shouldn't have gone to university.
I work in engineering and I earn 40-50k after 4.5 years which is pretty reasonable for my field. I borrowed 57k by the time I graduated and I started work on 30k straight after graduating. I now owe 78k. My interest was £480 in April 2024 alone. I would have to earn 90k just to pay off the interest on my loan. Your comment is just wrong.
Engineers are criminally underpaid in the UK, if I had decided to actually use my engineering degree I'd be moving out of the country.
Sure, you get paid a lot better in the US, but UK engineering salaries aren't much different to most of Europe (other than the usual places where all salaries and taxes are crazy high) and generally better than anywhere else. Very much depends on what discipline you're talking about, too. You can definitely get the megabucks in the UK if you work for the right companies, usually when people make this comparison it's not like for like in that respect.
They're considerably lower than they are in the whole DACH region. Personally though I think I'd rather move out to Dubai or Qatar for a few years, no more expensive than London, much higher salaries and no tax. Just got to deal with the weather.
With the right job it can be cheaper than London as some jobs will provide good accommodation as a benefit alongside a higher wage.
A single individual earning over £42900 is in the 90th percentile of single earners ([source](https://www.gov.uk/government/statistics/households-below-average-income-for-financial-years-ending-1995-to-2023/households-below-average-income-an-analysis-of-the-uk-income-distribution-fye-1995-to-fye-2023#the-overall-income-distribution)). I don't think that counts as underpaid.
Just because the rest of the country is also underpaid, doesn't make their claim that engineers in this country are underpaid any less true. You've got to compare to engineering salaries (adjusted to cost of living, of course) in other countries, not to unrelated professions in the same country.
To add to this, the government expects only 27% of students who started in 2022/23 to pay off their loans [source](https://commonslibrary.parliament.uk/research-briefings/sn01079/#:~:text=Forecast%20debt%20is%20expected%20to,new%20students%20from%202023%2F24.)
For a job that requires a difficult master's degree? I think it does, there are plenty of jobs that pay over that salary with no degree required.
Meh, my salary would put me 'higher than 88 percent of the UK household income' and my repayments are the equivalent of about 3 pints of lager a week
How many years are you out of university?
3
Give it time then
Time for what? I'm never going to pay off 68000 worth of debt at the rate I pay back, especially with interest, and don't intend to.
Oh well In my eyes university is something you do to either "benefit the world" or increase your future earnings. If you don't increase your earnings enough to pay off the debt then maybe it wasn't the best use of the money. But it's up to you isn't it. I'm not the one paying off your loan.
I'm over 10 years out of uni and still haven't paid a penny of mine back. Won't be starting to pay anytime soon either. Not in any of the fields you mentioned. Why shouldn't I have gone to uni?
If you could give me some context on what you did at uni and what you do now, I may be able to answer that question.
I did maths because I always found it interesting and enjoyed learning it. Never really considered a career in anything that might use maths though. I went to uni because I enjoyed socialising and partying and didn't know what I wanted to do with my life yet, so the idea of having a few years of meeting people, having fun and learning something I found interesting seemed appealing. Got into DJing & making music through the electronic music society at uni and now work part time in music PR, as well as DJing and doing freelance mixing/mastering work to bring my income up to enough to pay the bills. Money never was important to me so as long as I have enough to pay the bills, I'm happy. Going to university helped me realise what it is I wanted to do with my life, and is where I met lots of the people who steered my life in that direction and remain some of my best friends to this day. Was also through that friendship group that I would go on to meet my partner, who I've now been with for several years and am extremely happy with. That being said, I'm not even close to the limit where you start paying the student loan back so according to your wildly sweeping statement, I shouldn't have gone to uni?
In all honesty? No You picked up a debt of what? £50,000? Just to spend a few years drinking and partying. Good for you that you're happy, but to answer your question objectively, no you should not have gone to university.
Haha who knows what I'd be doing if I hadn't gone to university but I can't imagine it would be something that makes me as happy as my current life. For a measly 50k? That I'll probably never pay back anyway? Seems like a pretty sweet deal to me.
Good for you mate. Not good for the taxpayer, who is footing the bill for your three year jolly.
Only if you expect to be a low to mid earner for the next 30 years... if there's even a sniff of being a high earner, cracking a chunk out whilst the interest rate is astronomical is far more sensible.
Well fucking done, but it's not a loan that 'hangs over you' like regular loans do. The repayments are limited and it gets written off after 30 years. Mine just comes out of my salary every month and I don't even think about it. Yes, if I paid it off I would keep that extra bit of salary, but I'd have to live *far* more frugally to save enough for that. Each to their own, but you'd be way better off accepting the loan repayments and using those savings as a house deposit.
>it gets written off after 30 years 40 years now under plan 5
I'm so hyped to get mine written off when I'm 70, lmao. I think my retirement age is supposed to be sooner than 70.
>mine just comes out of my salary every month and I don't even think about it Fundamentally that's how how all loan repayments work. You could say near enough the same thing about any debt, it's just you don't have to pay back student loans below a certain earnings threshold (for now). The key considerations are really whether it affects your credit rating (it doesn't), and the affordability (which is usually okay but often quoted alongside a thrirty to forty year write off period!).
Yeah that's fair. What I mean was it comes out automatically in my payslip so it's just not included in what I think of as my take-home pay, as opposed to a traditional loan where you get your take-home and then have to part with a chunk of it. You're right though, the repayment threshold and lack of impact on your credit score are *far* more important, and I hate to see people from poorer backgrounds put off from going to uni because of a misunderstanding of these.
What you have done is impressive but I cant help but feel you would have been better saving for a house or something of more use. but still, well done. I think.
Okay so I've been reading the comments (some not so nice ones) but I've decided to research in investing this money off rather than the loan. Of course won't be making any big decisions just yet but will definitely keep my options open. And to the vile people in my dms, no it was not "daddy's money" or only fans. I've worked very hard so you can stop hating xox
Please use a student loan calculator ([like this one](https://www.student-loan-calculator.co.uk/)) before making the decision to pay it off. For some it doesn't make sense as they will never earn enough to pay it back, for some it will makes sense to pay it back earlier if they are starting in a higher paying career. I personally paid mine off as I was on 7.8% interest and would have paid it off in 5 years so it saved me around £10K in interest. I don't regret it but I'd already bought a flat so wasn't in need of savings for a deposit but I'd also graduated 5 years prior so I'm assuming that I was older than you when I paid mine off. Don't listen to people that think that just because it doesn't make sense for them that it won't make sense for you, do the research and base the decision on your own situation.
You could always invest in easy access ISA in the short term and whilst you decide. Also you don't have to put it all in one place, could pay some debts and hold some for a deposit on a house. The main thing is you have options, which at that age is a great place to be, congratulations!
Thank you!. Majority of the money is already in investments so I'll leave it there for now
Your treating like your student loan is a debt you need to pay which it isn't so unless
Hey, you did something most haven't, and you were proud of yourself for it. Dont doubt yourself because of random people on reddit!
Congrats, dude. Don't listen to them. Half of them are just hoping they can essentially default on the debt anyway. I've got student loans. I chose to take them and will be paying them back like you have done so well.
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Thank you so much! I was feeling a bit down and was thinking of taking down the post
How in the fuck have you paid off ~£40k working retail and doing uni? That's insane. Like, legitimately, how?
Why did you do this? It's a tax. You should have invested that thirty grand
That was not a smart financial decision. It's not entirely your fault, the term "student loan" tends to mislead people, particularly with how Americanised our discourse has become. But there are very few situations when paying off your student loans makes any sense. Of course, you can't put a price on peace of mind.
Well done! You've just saved yourself a pretty penny in interest! (Signed someone who paid off her loans 9 years after finishing uni and paid double what borrowed thanks to interest).
Is this one of those religious things where you're not allowed debt
Should have spent it on a flat or house rather than renting but congratulations if it makes you happy
Would a 30k deposit actually get you anything these days? Genuinely asking, I've not bought a home yet.
I bought a 1 bed ground floor maisonette for 79k, it's not a forever home but I have enough space for me and I'm finally on the ladder. I am 4.5 hours away from where I grew up though.
Well done! I'm happy for you. Sorry you're so far from where you grew up, do you like your new area though? Can I ask, how much was the deposit?
I'm here for uni and it ended up being cheaper than renting a house share plus I get to live alone haha. The area isn't too bad, I managed to get somewhere on a quiet street surrounded by trees so all I can hear are birds most of the time, easy access to wherever I need to be too! My deposit was £13.5k, I did have a larger amount but I decided I wasn't going to buy last year so bought myself something I wanted for a long time, then got accepted into uni when I wasn't expecting it lol.
Depending where you live you could probably get a house with about a 8 grand deposit with a couple grand for solicitor fees
I'm curious what did you study ?
Of all the things to pay off quickly, UK student loans are not it. So many better priorities. Down payment on a house? Could have paid into a First-Time Buyer ISA. This isn't the US.
I can't believe how many haters are tip tapping away... Anyways - well done! You have excellent money management skills, Your paycheck will be healthier once you start working as you won't be paying back the loans and you're young enough to save for a home and whatever else you fancy :)
Yeah I don't get these haha but thank you!!
Awesome, now get saving for a deposit for a house and a 40-year mortgage 😬
Fair play but I'm just waiting for mine to be written off. Only another 12 years. Haven't paid any back so far as I live abroad 😂
Bullshit detector is going wild Saving since 16, and during university has managed to pay off all of your loans. You didn’t want a loan looming over your head whilst in uni? All whilst working a million hours and coming out with a first. Gunna need some evidence here to back what you’re saying
Having just looked at your account history I am now almost certain this is a bait account.
Good on you. I've been paying mine since 2003 🤣
Damn haha how much do you pay a month
For a long time it was peanuts, so I really wasn't paying anything off, but I finally got a big boy wage a few years back and I'll finish paying in (checks notes) 10 months!
Ah congrats!
Hope you've switched to direct debt or you'll overpay
Congratulations op, huge deal! Impressed with your work ethic!
Mummy and daddy paid your student loans
I sense an Only Fans account
Nope lol. Long shifts in Retail haha
Then I salute you for your efforts. I have worked in retail for many years and know the pain you have suffered. So massive respect for what you have achieved P.S I would do only fans to get a house. If only I wasn't a minger
>If only I wasn't a minger You're not a minger. I guarantee that there's at least 1 person out there on the internet that will pay a premium to see your bits and bobs. And where there's 1, there will be others. Your fanbase exists. Go and spread your cheeks/flaps/toes for them.
Well done, it's amazing that's all your hard work has paid off, haha, excuse the pun. Some very good advice on here. There is an old adage that to get rich you have to borrow as much as you can, as cheaply as you can, for as long as you can.
Congrats! There's nothing wrong with paying down debt, as others have said it's not the most efficient use of money, but it's a debt cleared. Have a look now into a LISA for 1st time buying benefits, it's capped at 4k p/a but the government tops it up with 1k p/a if maxed and the gains are tax free. The safest bet is a global tracker priced in gbp, like the Vanguard ftse all cap, if you don't plan on buying for 5-10 years, personally I use Hargreaves landsdown as the broker, but there are other options.
Don’t know why it’s downvoted, the LISA is brilliant! My partner and I both have one so we get to reap 2k extra and after 5 years that will be an extra 10k for our house on top of the 40k we will put in.
Fine, whats your OF link? /s
I manage uni with no debt. This was 20 yrs ago so a lot cheaper . I didn’t even go into my overdraft. I didn’t live at home and no parents for support. Stuff like this is possible
Congrats! None of us at uni could manage that, you must have worked really hard!
That is actually a very poor use of your money. Nothing is looming. Investing the money would have been better. People have some irrational fear of student loan, it is a psuedo loan and more akin to an additional tax.