Student loan

CharlesStuart

My daughter has a modest student loan, approx £15000, which is far less than the ones generally referred to on MSE.  She is currently earning £40000+ per year.  Undoubtedly she will pay the loan off within the 30 year term.
Would she be better off taking out a bank loan at the current relatively low loan rate and pay it off within 3 - 5 years?

[Deleted User]

If she's convinced she'll pay it back, then yes, refinancing at a lower rate/shorter period will save her money. 

But should she suffer a pay drop or lose her job, she's be committed to paying it back. I wouldn't be changing it to a personal loan just at the moment.

DrEskimo

What plan is the student loan? If it's a plan 1 then absolutely not.

If it's a plan 2 then there could be savings on a reduce APR (assuming she gets accepted at the representative rate), but then as above, she would loose out on the benefits of only paying 9% above the earning threshold, and having it written off after 30yrs.

The personal loan will be a fixed amount that will need paying over the term regardless of a change in circumstances.

CharlesStuart

She’s on post 2012 loan and a masters loan, does that change things?