Plan 2 Student Loan Repayments

Seeking_Advice1

A very Baby-Boomer problem.
Our daughter, earning £75k pa with an expectation of a 4% annual bonus has a Plan 2 debt of about £45k.  We could afford to pay down at least £35k of this and at the same time she would pay down the balance using some of her savings, leaving her debt free and able to top up her pension. We paid off her elder brother's Plan 1 loan some years back.
Is this a good idea?

silvercar

Having already paid for your other child’s education, you’ll have to consider what you think is fair, as well as the numbers.

She should do a calculation as to when she would otherwise clear her loan and how long it would take and what interest she would have paid in the mean time. Also worth considering whether your £35k and her savings would be better being placed in a pension directly or even as a house deposit.