Should I pay off the student loan early?

[olympicfan]

DC has just graduated and the student loan already has 6k worth of interest added. (Borrowed 46k, now owes 52k). The current interest rate is 7.8%! They have got a job that starts on 35k but will be earning 50k in 2 years time. The job comes with accommodation so they will not be thinking about buying a house for about 5 years.

I had an inheritance and have also saved for DC so can afford to pay off their student loan before any more interest is added. Is this a good idea or madness? They are likely to be a high earner, but not city-lawyer type money.

What about future house deposits? The usual advice is to leave student loan debt unless there is a very great deal of money available to help them out. Student loan can be paid off affordably over time but getting a deposit together can be a struggle.

The student loan is at the forefront of your brain because graduation is recent but it's not the highest priority.

It should be the last think after buying a house etc

Only if you have exhausted all opportunities for your saved money to work hard your child. Would it benefit them more to have those funds toward a house deposit, rather than student loans? Remember that if DC falls below £25k for any reason, eg redundancy, their student loan obligations stop. Mortgage payments will continue…would it be more beneficial to have a lower mortgage payment obligation due to Mum helping with a larger deposit?

Question
my daughter has come into some inheritance around £30,000 she will go to uni to study law her career path might be that of a high achiever
should we use that money to pay her course fees and thus not have these high interest student loans (plan 5)