Repay small student loan?

NessG90

Hi all,
I've read martin's post on student loan repayment but I am not sure how it applies to smaller loans. 

I have a student loan of £6,834.52 with an interest rate of 1.5% and I started to repay in 2018. 

My annual income is now currently just over £30,000 before tax. 

Is it worth trying to pay this in full or continue with current method of repayment?

Thanks in advance. 

frankglemstone

NessG90 said:

Hi all,
I've read martin's post on student loan repayment but I am not sure how it applies to smaller loans. 

I have a student loan of £6,834.52 with an interest rate of 1.5% and I started to repay in 2018. 

My annual income is now currently just over £30,000 before tax. 

Is it worth trying to pay this in full or continue with current method of repayment?

Thanks in advance. 

I'm not an expert so do not take my words as a granted but judging by personal experience you are doing quite good on your student loan repayment
keep it up

Jami74

NessG90 said:

Is it worth trying to pay this in full or continue with current method of repayment?

How much is it costing you per month from your salary? Do you have a spare £7k sitting around not earning interest? Your monthly payments will continue and it will probably take a very long time to pay it off. However, if your salary drops (due to losing your job, taking a career break, long term sickness etc) then the payments will either drop or stop too. So if your £7k is your emergency fund/only savings then it might be better keeping it and continuing as you are. If your £7k is really spare and just sitting in a low interest account earning 0.5% and you have no plans to spend it on anything else then it makes sense to pay it off.