Graduated and saved student loan - should I pay it back in full or invest?
Comments
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The interest rate if (RPI) +3%, which comes to be about 4.6%
Yes I have a job and get payed above the threshold of 21K. But I don't have to start repaying the loan until April 18. So thought maybe it is worth keeping the cash, for emergency or small future investment, and meanwhile pay the loan back on monthly bases...0 -
Clive_Woody wrote: »Personally I would look to clear the student loan and start with a clean sheet.
As a young graduate my first priority would be buying my own place, so saving for deposit as well as setting aside an emergency fund would be my first targets.
Investing from a young age is great, but make sure you know what you are getting into and understand that your goals should be long term and investment can go down (a lot) in the short term and do come with risk. Have a read of some of the investment threads on here on the other board.
Well it's more about paying the sum back all in one or across payments. Both are an option, just not sure which one is best. I don't have any plans now to buy a house of something big, but intuitively it seem like a good idea to keep the money.
I have a job and get payed above the threshold of 21K. But I don't have to start repaying the loan until April 18. So thought maybe it is worth keeping the cash, for emergency or small future investment, and after April to pay the loan back on monthly bases, rather than all in one0 -
Thanks for your reply!
So I have a very low interest rate at the moment on it (RPI 1.6%) and once graduated (now) an additional 3% is added.
I can pay pay the loan back all at once as I kept the money. My salary at the moment is 30k, so from April 18 I will have to start paying back the loan on monthly bases.0 -
It's disgusting that the Government won't intervene and allow SLC to charge loans at the 6.1% but then again, most youngsters are being stiffed in today's society. A significant amount of young people (under 35) have to rely on money from their parents to fund a deposit and in a recent article I read in the newspaper, most young people never think they will get on the property ladder. So please stop with the money down the drain comment.. for some there is no alternative.Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0
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