Planning head - Do I repay part, all or none of Student Loan early?

maturelearner

I hope to graduate this July. My student loan will total approximately £11,500.

I am a mature student with partner and primary school aged child.
I currently have savings which would cover my student loan and only just stop me claiming any means-tested benefit. I am concerned regarding the best option for money to live off when I graduate if I am not fortunate to get a job straight away. It is likely to be September at the earliest if I'm successful in the current positions I have applied for, meaning first wage would be October at the earliest.

We currently rent. My partner unfortunately is now ill and claims ESA in support group- contributions based.

Would it be best to repay my student loan or part of it on graduation or just live off savings?

agrinnall

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

Bambi19

My partner paid part of his loan off early (first years fees), and although it has reduced his repayment amount, it hasn't removed the loan. When we finished uni we didn't find full time jobs for a year which worried me, but now I only pay around £20 a month from my pay cheque, which I don't even notice really. I would always rather have savings (just in case), especially as the loan is from the Government and has a very small amount of interest. That's just my opinion - I hope your partner is ok and good luck for graduation!

maturelearner

Thanks for the advice and good wishes for my partner.

I've also found a discussion where another poster was told it could be counted as deprivation of capital by the DWP if the loan is paid off in order to claim, so I'd still not be entitled to benefit. So looks like we're best off living as cheaply as possible for as long as it takes me to find employment.

Thanks again.