Student Loan Overseas AVP

The_Indecent_Prancer

Hi
I am living in Ireland earning Euro but my UK student loan is in GBP. My repayments vary every month due to fluctuations in the FX rate. I have a post 98 pre 2012 loan.

Irish bank accounts don’t pay large amounts of interest and there is tax of 41% on the interest they do pay, similar applies to most other saving/investment options. While I would still be getting more interest than I pay on the loan after the tax the amount of interest I’m receiving is tiny.Where the amount I'm paying has an impact on my monthly income.

The monthly payments can mess with my budgeting and I am facing a few more years of this. I can afford to pay the lot off now - I am debt free apart from this loan. Unless something terrible happens to me I am going to pay this off one way or another in the next two to three years.

I will still have about three months expenses saved up if I make a one off payment.
The EU Referendum seems to be driving down the price of sterling at the moment so now would seem to be a good time to pay it off.

Am I missing something?

Thanks

Arleen

GBP is pretty low now so it's a good time to pay it off. Can it get lower? Sure. Can it get higher? Sure. Unless you have some inside track info on future of currency chances, just use this opportunity and repay the loan in full, and if the GBP goes much lower soon don't kick yourself in the behind.