You are reading a single comment by @skinny and its replies.
Click here to read the full conversation.
-
Can you use excel? You can model the numbers there and determine the best approach based on expected earnings and inflation.
Anyway. You'll be paying 3% back annually. 9 less 6 inflation, on the initially 30. So that's 33 years and itll be cleared.
I'd pay it down quick. The interest isn't the best and wont be much lower.
skinny-
@skinny I tried to do this and this MSE tool helps https://www.moneysavingexpert.com/students/student-finance-calculator
but there is so much uncertainty (not helped by current events) over the next 5-10 years and beyond on inflation and salary expectations that it really isn't possible to do accurately
bobble
Slightly off topic here but also linked. If you had 30K student loan debt and earned 30K, your student loan debt would grow at c. 6% or £1800 a year (I think). Your mandatory contributions would be 9% of anything you earn over 25k for 40 years or until the debt is wiped, which starts out at £450. In year 1, would you try to service the debt by supplementing mandatory payments with contributions from your net salary (£1350), or just put your disposable net income into an ISA. Or try and do both?
I am slightly perturbed by how big the 9% deductions could be in like 10-20 years if my salary grows and the interest has been compounding with minimal contributions made, but also why wipe down something that I may never have to repay? (could not work for any number of reasons, may work for around 30k forever and would not pay it off in the time frame, gov could do something radical).
Any thoughts?