Should I pay off student loan, or not?

[AuContraire]

I have £8000 left of my student loan to pay off. I have £25k in savings. I have two little DC. I currently have about £340 a month deducted from my pay. I first went to university 20 years ago, so it's been accruing since then, and it's the 'bad' type where the repayments of 9% start on a lower amount than they do now.

When I first graduated, it was going up by £1000 a year more than I was paying off. I remember crying when I got the annual statement from the SLC through the post, in total despair that I would never, ever be able to pay it off.

Now I'm in a position where I can, and since the interest rates are now very high, it seems like a more sensible thing to do.

Would you?

Yes I would. Get rid of it especially if you have savings.

If you have the savings to do it now and you are unlikely to need the money for anything else anytime soon then I would pay it off.

Yes because if you don’t I guess you will end up paying more than £8000 back over time.

Yes, I think it said the interest this year would be £350, plus whatever next year.

Yes, it’s a no brainer.

If its 20 years old, isn't the repayment cut off 25 years anyway? I'd do the calculations, if you're going to be working full time for the next 3 years so will likely pay it off then yes may as well do so now and save the interest. If there's a chance you won't pay it all off by the threshold I wouldn't!

Just paid mine off but slightly different circumstances. Will be nice to have the extra every month!

If its 20 years old, isn't the repayment cut off 25 years anyway?

Not mine, sadly. It only gets written off when I'm 65!

When is the 'write off' date - I'm on plan 2 so paid the extortionate fees, but have the higher salary cap - so mine will almost certainly be written off before I pay it off, even if I start having to contribute.

If you'll pay it off before it's written off, or will end up paying more than the 8k left before the remainder is written off then pay it. If its written off before you've paid it all/less than 8k then its technically better to take the hit each month, as you'll spend less in the long run. Hope that makes sense.

Only if you're paying more interest on the loan than other debts, e.g. mortgage. Otherwise pay off that debt first!