Student Loans And Paying Them Off Early
The government is going to scrap an early repayment penalty on student loans, or in other words, a pre-payment penalty.
This penalty was to be assessed on those with student loans that paid them off earlier then 30 years after leaving university.
30 years! Whoaaa, that is a long, long time. And one would hope to have paid back their student loans before that time frame.
It was originally thought that wealthy students, or those that became wealthy, would pay off their student loans early, which costs the government money in lost interest.
But then it was found that it was not the wealthy who may pay off their loans early, but those earning in or around £18,000 annually.
I think removing any pre-payment penalty is a good thing and one that helps to not promote debt. By making it more costly to get out of debt, is basically saying, stay in debt, your better off.