How to get over having loan debt

[Sycamore]

As a quick prelude, I'm 27, on £38k, and upon leaving a job some months back, I expectantly received a bill from the company for ~£11k.
This was to repay a portion of the costs they kindly put forward for me to study my degree. No qualms there.

I wasn't expecting to leave so suddenly (my previous job was almost making me ill due to various reasons) and had only recently bought a house (joint mortgage, house was £160k), so with money in shorter than usual supply, I took a personal loan to cover it.

The payments are easily manageable, and I'm overpaying where possible to shift it sooner - However, I fking hate seeing/knowing of the loan amount when I open up my account.

It's almost hanging over me, which I find unusual considering I'm not struggling due to it and it's for something "worthwhile" like my degree.
Weirdly I don't feel the same about my mortgage debt, but I absolutely feel like I owe the loan debt.
I don't have any other debt, cheap car etc, so I'm not sinking or anything.

Do I just look at it as an investment in my future? Is it "wrong" for me to have the debt?

There's seemingly some finance/business savvy folk on here, so I was hoping to get some opinions - Granted they'll understandably be along the lines of "keep paying it off, chin up buttercup"

Cheers

[loafer123]

Just consider it a student loan you took out for tuition, like millions have, and continue to pay it off as quickly as is sensible to avoid wasting money on interest.

[Pieman68]

As per the first reply - in the grand scheme of things it's manageable and serves a purpose

Worry is when you're £20k in debt on top of your mortgage and the wife pisses off and leaves you unable to pay the monthlies, and the only thing you own to show for it is a £600 car

(She was a devious cow)

[simon_harris]

Add it to your mortgage and pay it off over 25 years*

• Not actual financial advice!

just view as education loans and clear it as you are doing, many many people have far more debt for far less useful/important things.

[Sim75]

Were they legally entitled to ask for it back? I know student loans can be paid off over a long duration so that they are easily manageable, not sure why these would be any different. That said, not much use now as you've already sucked it up and are paying it off via the bank.

Upside is you'll be clear of it way sooner.

All in all i'm struggling to see what the issue is chap? If paying it off isn't causing you any financial hardship then don't worry about it. Investing in ones education is a perfectly noble cause which will yield a far greater return in the long run.

Good luck finding a new job.

[cowboyengineer]

I’m not sure they can legally make you pay it off

[Pieman68]

cowboyengineer said:

I’m not sure they can legally make you pay it off

Surely depends what is in your contract. I've had contracts before that state if the company pays for training and you leave within 12 months you are liable for the cost of the training

[RogerDodgerSuperTodger]

Pieman68 said:

cowboyengineer said:

I’m not sure they can legally make you pay it off

Surely depends what is in your contract. I've had contracts before that state if the company pays for training and you leave within 12 months you are liable for the cost of the training

Same here but with a taper over a few years.

[OutInTheShed]

Assuming you really did need to pay the money back, just pay the loan off as soon as you can and try to feel it's better than many people with student loans hanging over them.

If it's got you to an OK job with prospects, you are not doing so bad.
The cost of your degree should pay for itself many times over in your career.
It's a decision or two you made that you can't unmake, so move forwards and upwards.

Maybe it's possible to go interest-only on the mortgage to lose the loan quicker, but now is probably not the time.

I'd suggest not going OTT overpaying it, keep some easy access savings.

[cowboyengineer]

Totally depends on the wording in your contract and even if it does state something, still doesn’t mean it’s legally enforceable. I would ask a professional for advice.

https://lincslaw.co.uk/blog/can-my-employer-deduct...

[psi310398]

Too late now in that the loan is repaid but were the circumstances in your last job that made you ill things that could be seen as factors contributing to a constructive dismissal? That (and any neglect of a duty of care by your employers) would seem germane in considering whether the debt was repayable in whole or in part.

[Sycamore]

Thanks for the comments all.
In reality I'm aware that there's no huge issue here. Just getting ahead of myself I think. I'll view it as an upgrade in myself

My uni modules were covered by a study support agreement, with the repayment due per module tapering off over time following each modules completion. Fairly standard practice really.

It wasn't a "student loan" in the usual sense. They just put me through uni essentially on the agreement that if I leave within a given period I have to pay back a varying amount.

[Scootersp]

Sycamore said:

Thanks for the comments all.
In reality I'm aware that there's no huge issue here. Just getting ahead of myself I think. I'll view it as an upgrade in myself

My uni modules were covered by a study support agreement, with the repayment due per module tapering off over time following each modules completion. Fairly standard practice really.

It wasn't a "student loan" in the usual sense. They just put me through uni essentially on the agreement that if I leave within a given period I have to pay back a varying amount.

What's done is done so don't be hard on yourself? at some point you weighed up this "my previous job was almost making me ill due to various reasons" with £11K and you put your well being ahead of cash. Yes you could have 'toughed it out' until the taper went to nil but you chose not to, there was a reason for that. All it is, is you are now having to deal with the downside of your decision 9there are nearly always some), with the upside slightly forgotten!

It was either an excellent decision, or a little reminder that big decisions need to be completely thought through, only you'll know which it is, probably it's a bit of both, but no going back now so just take from it what you will.

Anyone leaving Uni now and earning what you earn will be paying back what you are for many many years, so you're ahead compared to if you'd done the degree without working, you are less stressed and I'd argue being annoyed about debt is better than being 100% comfortable with it.

I would not add it to the mortgage, it'll reduce monthly payments but you'll repay far far more in the long run.

[Caddyshack]

Maybe get some general counselling as to your thoughts, the loan should not bother you so need to learn not to let it trigger you and maybe the job making you ill is also something more related to mental health?

[vulture1]

Debt doesn't have to be a bad thing if its manageable and for a good use. Spunk that 11k on a Vegas holiday yeah I'd feel guilty. But you have gained an asset. You could look at it as gaining two assets as you got the qualification and your health back.

[Countdown]

cowboyengineer said:

Totally depends on the wording in your contract and even if it does state something, still doesn’t mean it’s legally enforceable. I would ask a professional for advice.

https://lincslaw.co.uk/blog/can-my-employer-deduct...

You're right, it depends on the wording of your contract. However it would be a stupid HR Dept that approved the loan without getting the relevant paperwork signed.At our place the contract only refers to money owed being deducted, the trainees normally sign a separate training contract.

We do it as standard for anybody on a professional training course and it's tapered (50% repayable after 12 months, 0% after 2 years)

[gotoPzero]

In 20 years you will look back and think 11k wasn’t a lot of money and you got really good value for money. Trust me.

It’s manageable and it sounds like when you get it paid off you will be very happy so just look forward to that day even if it is still a while away.

[iphonedyou]

Sim75 said:

Were they legally entitled to ask for it back? I know student loans can be paid off over a long duration so that they are easily manageable, not sure why these would be any different. That said, not much use now as you've already sucked it up and are paying it off via the bank.

Upside is you'll be clear of it way sooner.

All in all i'm struggling to see what the issue is chap? If paying it off isn't causing you any financial hardship then don't worry about it. Investing in ones education is a perfectly noble cause which will yield a far greater return in the long run.

Good luck finding a new job.

It'll be different from a student loan because very few companies, for really patently obvious reasons, will be willing to pay out for an employee's education where, as here, that employee has left and gone elsewhere - for that education to, presumably, benefit another enployer that hasn't paid for it.

OP gets it.

[DaveE87]

Be proud of yourself for doing the right thing. Many people would have stayed in the job they didn't like until nothing was owed. When it's paid off you will find a sense of achievement even if it doesn't feel like it will now.

I can relate to how you're feeling. You're probably thinking about how you could have done things differently, but speaking from experience nobody wins when you think like that. Accept what's happened and you'll soon be at peace with it.

[Pit Pony]

Where I work, a lad went to a competitor, and they provided an interest free loan to settle his university fees debt, that the company wanted back.