Is paying off my student loans at this point a bad idea?

CRITCHKFC

I feel it would be good financial sense to pay off my loans, but have heard that sometimes there is no point and you can't get your money back so don't want to make a mistake. Reading all the info on this site, everything tells me I should pay them off, because I'm earning the worst amount for repayments £52,167 and will continue to earn the same or minimum 40k until the loans are forgotten. I have no other debts and have no plans to get any other loans or mortgage.
I am currently paying £155 a month on my postgrade loan which has 24years left and £11,050 outstanding and £239 a month for my plan 1 loan which has 8 years left and £6,265 outstanding. I have the money to pay both off, the question is, is this financially sound?     

DrEskimo

Well financially yes, it probably makes sense to pay them off as it's highly likely you will pay the total amount, and therefore paying them now will save on future interest charges.

I'm not in a dissimilar situation where my Plan 1 loan is around £5k now and I switched to a direct debit and increased the amount from ~£500/month via PAYE to £800/month, and so will be gone by Feb 2023.

The real question is whether you could use the money for other things? Any big ticket items you are saving up for that the money could be used for? TBH given the interest rate rises I'm inclined to think even that argument is weak now. About the only thing I wouldn't do is use savings for a house deposit to clear them earlier.

CRITCHKFC

Thank you DrEskimo - I will be purchasing a home in a few year times after recently selling mine, however I would have more than recouped the amount paid in savings and I will have enough to buy outright.  I agreed paying the loan off seems a no brainer. 

Herzlos

What rates are you paying on them? If it's so low you can do better with the money, I'd keep the money but otherwise you're going to save by having them cleared earlier especially if you do end up going down the mortgage route in the future.