Student loan - should we pay off for 25 year old son earning £40k

Bolt1234

Hello,

I know there is an awful lot of info on whether to pay a student loan off. Could I run by our scenario to get some advice please.  I have bullet pointed for ease.

• Son is 25 years old and got a graduate trainee scheme which he finished 2 years ago with a very large company.  He is now fully qualified in the insurance industry
• He is working in London and is in the process of applying for his next role at circa £48-£50k.  He is ambitious and has an ambition to work abroad too
• We have come into a significant inheirtance and have plenty of money to pay it off (and potentially for our younger son too who has just finished his degree and taking a year off).  I suspect he wil get the same sort of salary as his brother at the same age.

Should we pay it off completely.  Understand younger son wont pay until he starts earning circa £26k.

Many thanks

sammyjammy

I would suggest that if you want to help them out you give them a sum of money and let them decide what to do with it.

silvercar

It may be more beneficial to help towards a deposit for his first home, particularly as you say he is in London.

If you have money to spare, you could do both.