Student Loan with Credit Card?

IAMIAM

If you have a student loan of £5k on Plan 2 that has a rate of 6.1% and pay approx £125 a month from salary - surely it is cheaper to pay if off with a 0% card and just maintain the same payments? 

DrEskimo

IAMIAM said:

If you have a student loan of £5k on Plan 2 that has a rate of 6.1% and pay approx £125 a month from salary - surely it is cheaper to pay if off with a 0% card and just maintain the same payments? 

Student loan repayments are tied to your salary, irrespective of the amount owed. 

Typical 0% credit card will only have about 18months, so if you can't do a balance transfer, paying £125/month would only clear £2,250, leaving you paying much much higher interest on the remaining balance.

You also won't be able to clear the student loan using a credit card, so would have to go with something like a balance transfer card, or use the credit card to buy something else for £5k and use savings to clear the student loan.