Student Finance Loans repayment

Daniel99807655

Hello, 

I'm graduating this year with circa 40K in cash and an additional 10K in LISA stocks and shares. I have a job lined up where I will start on 28k and in 3/4 years will be on 50k. It is the public sector, so I don't expect my salary to rise much above 50k in the long term.
 
£50K from parents/grandparents and working, and an untrivial compensation payout I received.

Of this 40k, 9k will be unspent student loans. I got a maintenance loan of 6K (London Uni minimum) per year but lived off 3k a year for sustenance. I was wondering if it was worthwhile returning this given that I am highly likely to repay my student loan balance of circa £20k inc interest (3x£6k), or should I keep and use for housing deposit or retirement. 

I have used up my isa allowance this year and transferred £16k of my cash holdings into a cash ISA today so I can move this into stocks and share isa. 

Daniel99807655

P.S the reason for such a high cash holding was that I was considering doing a master's so needed £30k to fund that, but that is no longer the case

Albermarle

The fact you have not used some of the loan should not be part of any decision making about what to do next .
If you are really sure that you will be a earning in the £50K region , then it makes sense to at least consider paying off the loan to reduce interest payments of around 5% .
However if you need the money for something else , like buying a house .
As you will be working in the public sector with a good salary then you will be in a good position/retirement wise anyway . So probably not too much need to worry about that at the moment.

So I think what I am trying to say is that it is probably best to pay the loan off at some point , if you can do that without unduly affecting your other plans .

jonnnyash

interesting