Pay off student loan or continue to save?

jamesya

Hi Guys,

I am currently working in Australia and saving 3000pounds a month in my bank account (no real saving account, so very low interest). I also recieve another 1600pounds every 3 months depending if i return to the UK or stay in Aus.
I am currently paying about 350pounds/month of my student loan. Interest on my SL debt is 1.5% and currently the loan stands at 20050pounds.

I would like some advice on whether to start paying more money off my student loan or to continue to save in a more rewarding bank account? If so what account?
My aim is to save for a good deposit of a mortgage when I return to the UK. My SL is relatively manageable but would take about 10years to pay off at the 1.5% rate (i am taking that as monthly %interset)

Thanks
James

ellesbellesxxx

Hmm tough one. Your student loan is cheaper than a mortgage though so I would personally say keep the loan going so you don't have to get a bigger mortgage!