Should I pay off my student loan?

mspenguin
mspenguin Posts: 8
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edited 20 December 2022 at 11:48AM in Student MoneySaving
Can someone math this better than me?

I will have to pay off my student loan, I earn enough and there isn't much left to regardless at some point I will pay it all it won't be written off.

My balance is £4,609.02     
I currently pay £124 PAYE + £60DD

Interest on my student loan has now increased to 3.25%.

All of my savings are in easy access account (hoping to buy a bigger house at some point so haven't fixed it). The highest rate my savings is earning is 2.25-3%.

Should I be using my savings to pay off my loan now?

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  • Ed-1
    Ed-1 Posts: 3,851
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    edited 20 December 2022 at 1:56PM
    mspenguin said:
    Can someone math this better than me?

    I will have to pay off my student loan, I earn enough and there isn't much left to regardless at some point I will pay it all it won't be written off.

    My balance is £4,609.02     
    I currently pay £124 PAYE + £60DD

    Interest on my student loan has now increased to 3.25%.

    All of my savings are in easy access account (hoping to buy a bigger house at some point so haven't fixed it). The highest rate my savings is earning is 2.25-3%.

    Should I be using my savings to pay off my loan now?
    Probably if you don't think you'll need access to the cash.

    Interest on Plan 1 loans is now 4% and will continue to rise at 1% above base rate (so it will be 4.5% soon).


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