Is it good idea to pay back University Tuition Fees ?

Unistudent17

I just had completed my University course and graduated.
My student loan comprises Tuition fees for three years.
£9250.00 x 3 = 27750.00

My outstanding balance as of today is £29717.31.

I have a job offer of £31000.00 /annum and intend to start in September 2022.

With the predicted rise of CPI by the end of this year, interest rate on student loan is to rise sharply....

If one has the means, would it be advisable to pay back the tuition fees? 

People may have discussed this before in here but I could not find the discussion I am after.

May I take this opportunity to thank you in advance for your thoughts and a reply. 

elsien

Starting point here?

https://www.moneysavingexpert.com/students/repay-post-2012-student-loan/

GentleGiant01

It completely depends in my opinion on your earning potential. My son will never fully pay of his student loan as his industry isn’t a well paid one, so it would be pointless paying more than the minimum! 

MallyGirl

GentleGiant01 said:

It completely depends in my opinion on your earning potential. My son will never fully pay of his student loan as his industry isn’t a well paid one, so it would be pointless paying more than the minimum! 

Same here - my daughter is doing a 6 year course and she is likely to owe a significant amount still when it is written off after 30 years. She will just think of it as a graduate tax.

DrEskimo

GentleGiant01 said:

It completely depends in my opinion on your earning potential. My son will never fully pay of his student loan as his industry isn’t a well paid one, so it would be pointless paying more than the minimum! 

Yea agree, this plus the opportunity cost of any overpayments.

Arguably, since the student loan repayments are based on income (and not the underlying amount owed or the interest rate), the money can be better used for things like house deposit savings and any other expenditure in that stage of your life.

inspectorperez

It would be interesting to hear any anecdotal evidence from Post Graduates with outstanding loans who have had problems obtaining a mortgage because of existing financial commitments. This is now perhaps much more relevant with rising interest rates and lenders fine tuning their mortgage products and risk assessment strategies.

kaMelo

inspectorperez said:

It would be interesting to hear any anecdotal evidence from Post Graduates with outstanding loans who have had problems obtaining a mortgage because of existing financial commitments. This is now perhaps much more relevant with rising interest rates and lenders fine tuning their mortgage products and risk assessment strategies.

Any lender you want a mortgage from will want to know your broad financial situation, paying back a student loan is just one expenditure they use in the calculation of deciding whether to lend and if so how much. There is no way to know the impact of a student loan, no lender will tell you in such detail.