Paying off Student Loan

booklover

Hello

I am a mature student and graduated 2 years ago. I owe about £5000 on the Student loan and have recently started earning enough to have £8 deducted a month.

My question is because I can probably afford to, is it sensible to pay a lot more off it each month, say £150 or try and pay it all off in about a year (to incur less interest). Or else just continue this way ie. making the minimum payments.

Many thanks

Fiona

marshall2k

Hi Fiona,

Martin wrote a lovely article on this. My plan is to pay off as little as possible; it's the cheapest loan you'll ever get and doesn't affect your credit rating. The rate from any half-decent savings account will outweigh any interest saved by paying more loan off.