Student loan

amy-jane_2

I currently have about £13,000 of debt whcih is accumulating around £50 interest a month. I have some savings and am wondering, with the low interest rates, if I should pay off some of my loan?
Please help, I am in real need of some advice!
Amy

CLAPTON

the current interst rate for student loans is 3% ..this being 1% above base rate (i.e. 2+1)
so your loan is growing at £32 per month
if the bank rate falls to 1% as expected the SLC rate will fall to 2%

what are your saving earning?

the SLC loan has the great benefit that its repayment terms are better than any loan you will ever have

the loan may provide a deposit on a property or pay for a car in the future.
so if you ever expect to have to borrow money then stick wih the SLC loan .

Mikeyorks

I'm assuming this is all SLC debt? In which case it's advisable to maximise the yield on your savings ... but don't repay the SLC debt, where the interest rates are headed more sharply downwards.

Well researched article here :-

http://www.moneysavingexpert.com/loans/student-loans-repay