Student loan repayment advice please

[underwhelmist]

After leaving my last employer I completed an MSc full time. I took out a postgraduate student loan of around £11k (I think the amount outstanding is now about £11.5k including interest).

I'm 53 and am now working again. I can either pay the loan back monthly as most people would (as I've only been working again for a couple of months I don't yet know what the monthly deduction will be) or I could clear it completely from savings. I like the idea of no outstanding loan and no monthly deductions, but it would be a significant bite out of my savings. What would your advice be? Thanks in advance.

[Glosphil]

Are you allowed to off half the debt & at least reduce the interest due?

[underwhelmist]

Good idea, yes it's possible to make one-off payments. However having looked up the rate (4.4%) and done some quick sums, the monthly deduction isn't going to be too bad so I'm tempted to just pay it back monthly.

[deggles]

Is it like a 'normal' student loan where repayments come out of your pre-tax income? If so that would make a big difference to the true cost.

[Bam89]

I'm pretty sure student loan comes out of post tax income

[Somebody]

I believe you don't start to repay a "post 2012" student loan until April in the following tax year post year of graduation, at 9% over the earnings threshold.

Edited by Somebody on Wednesday 23 February 17:42

[craig1912]

Bam89 said:

I'm pretty sure student loan comes out of post tax income

It does.

[craig1912]

underwhelmist said:

After leaving my last employer I completed an MSc full time. I took out a postgraduate student loan of around £11k (I think the amount outstanding is now about £11.5k including interest).

I'm 53 and am now working again. I can either pay the loan back monthly as most people would (as I've only been working again for a couple of months I don't yet know what the monthly deduction will be) or I could clear it completely from savings. I like the idea of no outstanding loan and no monthly deductions, but it would be a significant bite out of my savings. What would your advice be? Thanks in advance.

How long do you intend working and when do you intend to take your pension.
Depending on your circumstances it may not be worth paying it off.

https://www.whatdotheyknow.com/request/pension_inc...