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Life After University


N.Wood

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I'm gutted, I've had to start making repayments on my loan - I was hoping to get to pensionable age without earning over the threshold...I think it gets anulled..

(N):ermm:

yup, when you hit 65 they cancel it. Probably not worth being poor your whole life just to steal a few grand off the government though.

It takes forever to pay the loans off - I've only just scraped past half what I borrowed and I've been giving them £75 a month for bloody ages. The worst part is that I've got more than enough in my bank account to pay it all off in one go and the c**ts won't let me

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yup, when you hit 65 they cancel it. Probably not worth being poor your whole life just to steal a few grand off the government though.

It takes forever to pay the loans off - I've only just scraped past half what I borrowed and I've been giving them £75 a month for bloody ages. The worst part is that I've got more than enough in my bank account to pay it all off in one go and the c**ts won't let me

So?

They're not charging you interest (over inflation) on your student loan so why not just leave that £6k you have (assuming your original loan was 12k) in a tracker fund for 18 years. Assuming the last 15 years reflect the next 18 years, you can expect about a 10% return on your investment per year.

total return:

18 x 1.1^18 = 556%

5.56 x your £6,000 = ~£33,500

In todays money, assuming 3% inflation, that's £19,677. I didn't take into account any fees, which are usually about 1%, which effectively makes the ROI 9& not 10%, but i can't be bothered to do the calculation again. Est £15k.

In other words, you can use that money to make sure that kid you've got on the way doesn't have to get a student loan at all. And if they don't want to go to uni... well, you got yourself a nice new car ;)

Edited by Extreme_biker0
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maths n that

That's quite a good idea that but I don't think I borrowed enough money to make it worthwhile...

I borrowed £2500 in the first place - assuming I owe £1250 that gives me £3.5k ish over 18 years which equates to roughly £390 a year - which is less than half what I fork out in repayments (£900 a year).

Its sound advice but in the specific case of using my loan money it wouldn't work for me. It does give me an idea as to what to do with the rest of my idle millions though...

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