The Anonymous Widower

Early Repayment Rules for Student Loans

Traditionally, there has generally been a penalty for early repayment of loans, but some of the new ethical online loan companies, like Zopa use no penalty as a selling point.  So do Wonka, who I wouldn’t normally describe as ethical. Even Nationwide charges an extra 30 days interest if you settle your loan early.

So for the student loan companies to charge would be going against what is now accepted as normal and back to the bad old past, where early repayment was a major part of a loan company’s profits.

As this seems to have been a Liberal Democrat idea, who are supposed to be forward thinking or at least not backward, you can read what you like into the proposal.

I don’t need to borrow money, but if I did, I would always do it from a reputable company, that had no penalty for early repayment.

February 16, 2012 - Posted by AnonW | Finance, News | Banks, Zopa