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Is it wise to pay off student loan early?
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YScot19
Posts: 1 Newbie
Hello,
I have approx £3.6K of student loan debt left (plan 4) at 5.25% interest. Mortgage rate 4.15%, no other loans. Don't think i can get a savings rate higher than student loan interest. As a higher tax payer, I'll be taxed once i earn over £500 in savings interest. I have read the blog on repaying student loan early and fully understand that this is a unique loan but i can afford to pay it off. Thoughts if this is wise?
I have approx £3.6K of student loan debt left (plan 4) at 5.25% interest. Mortgage rate 4.15%, no other loans. Don't think i can get a savings rate higher than student loan interest. As a higher tax payer, I'll be taxed once i earn over £500 in savings interest. I have read the blog on repaying student loan early and fully understand that this is a unique loan but i can afford to pay it off. Thoughts if this is wise?
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Comments
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If you think you will definitely repay it all before write off and you have no other pressing need for the money, then it does make sense.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1
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