Is it worth me repaying my student loan?

Masomnia

Ah ok, well you won't even get 3% in an ISA. I guess maybe if you want to still have access to the cash you might want to pay the interest, but I don't really see the point.

I don't know how they get away with charging RPI really, it isn't considered a national statistic any more!

mucgoo

Masomnia wrote: »

Ah ok, well you won't even get 3% in an ISA. I guess maybe if you want to still have access to the cash you might want to pay the interest, but I don't really see the point.

I don't know how they get away with charging RPI really, it isn't considered a national statistic any more!

The current situation is extraordinary. Normally you'd be able to make a nice profit from interest being higher than inflation.

Its a very cheap way of borrowing once it goes down to RPI. All historical precedent say you can make a nice profit of the difference so keep it.

Masomnia

mucgoo wrote: »

The current situation is extraordinary. Normally you'd be able to make a nice profit from interest being higher than inflation.

Its a very cheap way of borrowing once it goes down to RPI. All historical precedent say you can make a nice profit of the difference so keep it.

I'd say we're in unprecedented times!

I graduated in 2010, so the debt is costing me 1.5% so certainly worth keeping. On the new system it's certainly not so clear cut. especially atm.

duggan1

I've been contemplating paying mine off for a while. Am currently 50 ppm below the salary level that means I have to start paying it back so am anticipating having to start by next year. Graduated in 99 so they are the 'old' old style ones at 3% or something similar. I have the cash but its nice to have the cash even if it is technically losing value at the minute....

Tricky decision...

TurnUpForTheBooks_2

Unless cutting the cord with SFE by paying off the £1,600 balance deprives you support for an "easy restart" should you decide to give it another go, I'd say there's nothing tricky about this decision if you are on repayment plan 2 (currently 6.3% as you have said). PAY IT OFF now and enjoy your clean slate!

After RMB becomes the world reserve currency and hyperinflation starts to kick in here in the West you might then still be in control of your own economy, whereas those of us who are still borrowing at any rate directly linked to inflation will likely be stuffed !