Many students entrust their education to student loans, but are these loans worth the investment? The good or bad first of college life can often be sewn together with student loans and with so many banks on the market its hard to know which is best for you.
Whats the worst that could happen if you pay back student loan early?
According to a report by CompareCards.com, the worst thing that can happen if you pay back your student loan early is that you’ll end up paying more in interest and federal taxes than if you had kept your loan on track. The report says that if you repaid your loan in less than ten years, you would have paid an interest rate of about 5.6 percent, compared to the scheduled 6.8 percent interest rate. Additionally, if you repaid your loan within seven years, you would have paid 3 percentage points more in interest than if you had waited longer. However, these are only hypothetical examples; in reality, there are many factors that could influence whether or not repaying your student loans early will have a negative impact on your finances. If you have questions about howrepaying your student loans could affect your overall financial status, be sure to consult with a qualified financial advisor.
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If you need to find information or contact your Student Loan Company, you can do so through the following number: 0800 068 41 41.