We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Is it worth paying off my plan 2 student loan loan with some of my mortgage overpayment?
Options
Have 15k saved, was going to pay off some of my mortgage but now thinking is it wise to pay of my plan 2 loan?
I owe 10k, earn around 50k and have ended up paying the maximum interest every year for the last 2/3.
I am thinking the extra 170 a month would come in handy and the mortgage interest rate of 3% is going to be much cheaper than 7.2%!
Or is it wise to carry on as is and let PAYE take care of it over the next 5/7 years. Thoughts....
I owe 10k, earn around 50k and have ended up paying the maximum interest every year for the last 2/3.
I am thinking the extra 170 a month would come in handy and the mortgage interest rate of 3% is going to be much cheaper than 7.2%!
Or is it wise to carry on as is and let PAYE take care of it over the next 5/7 years. Thoughts....
0
Comments
-
Without knowing exact figures it's impossible to say and even then it's not black and white..
It is possible to never pay it off entirely but pay more back by letting it run it's course when compared with paying off the whole lump now. The downside to paying off in a lump sum is that you need a lump sum to do so and don't have the benefit of using the lump sum for something else.
Only you know your future earnings potential and how long to go before the student loan is written off. Do the maths and work out which option is beneficial to you.
0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.3K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards