Student Loan repayment for high earners

redlfc

Hi all - would like some advice on this if possible

I have recently found out my student loan has been collecting a whopping 6-6.6% interest throught my years at medical school (started 2012)

My current repayment amount sits at over 70k! and still collecting at 6.1% interest

I am now working as a junior doctor and am wondering whether i should consider paying it off faster before thinking about investing into ISA/LISA/S&S as the interest is higher than any of these would probably give me

I know that for most people in Plan 2 paying 9% above 25k - the debt will likely be wiped off after 30 years without even paying what was borrowed let alone the interest

However from my estimated calculations based on career earnings I will likely pay 140k across my lifetime which is double what it currently stands at!!

Any advice/anyone in a similar position?

DrEskimo

It's potentially a good idea if you are convinced you will earn a lot of money (the career trajectory to consultancy apparently isn't as assured as it used to be), however I think you should hold off until you have achieved some of your more immediate goals. For example if you are saving to buy a house, it would be more advisable to save up as much as you can as quickly as you can to get a deposit and get a foot on the housing ladder.

After you have tackled some of you short/medium term financial goals, and you have a clear idea of your earning potential, then you could revisit the idea of overpaying IMHO.

redlfc

DrEskimo wrote: »

It's potentially a good idea if you are convinced you will earn a lot of money (the career trajectory to consultancy apparently isn't as assured as it used to be), however I think you should hold off until you have achieved some of your more immediate goals. For example if you are saving to buy a house, it would be more advisable to save up as much as you can as quickly as you can to get a deposit and get a foot on the housing ladder.

After you have tackled some of you short/medium term financial goals, and you have a clear idea of your earning potential, then you could revisit the idea of overpaying IMHO.

this is very helpful advice - thank you!