Paying off Student loans?

AdamG_3

I am posting this on this forum as I thought there may be those here with more experience financially than on the student board.

I have a student loan, I graduated last year. my loan is around 12,000 plus interest.

Recently I have come into some money. enough to be able completely clear my student debts.

However, I want to be a clever with my money as possible, therefore I think that paying this off lump some may not be the best idea. Student loans only have to be paid back once you earn over 15,000 a year, and the interest rates are low at 2.4% Basically, it is the type of thing you forget about and just pay off gradually along with tax and national insurance.

I think I may just continue to pay this off with my income, and keep my savings separate. and earn as much money on the 12,000 as I can, rather giving it back straight away

Any thoughts?

Adam

zar

Yes, don't pay it back early. Make money on it now, and then you'll have it available if you need it. There's nothing as daft as paying off your student loan and then going out and getting a bigger mortgage or car loan a couple of years later!

There are lots of threads about paying back student loans and how they work on the student boards if you want to know anything else.