Should I pay off my student loan

Should I pay off my student loan

Having a student loan might be a real pain. Here is some good advice on how you could pay off your student loan:

* If you do not earn enough – you do not have to repay. It is as simple as that. If you are earning £15,000 or less you don’t have to pay off the student loan now.
* If you are earning more than £15,000 though and don’t have other loans part of your salary will automatically be deducted and go towards paying off the student loan.
* If you have other loans it is more sensible to pay them off first, as usual, the student loan has a lower interest rate.
* If you don’t have other loans it might be even more sensible to put your money into a high-interest account. This way you could earn better (as a percentage) and in the end, when you have enough you might decide and pay off your student loan.
* If you decide not to pay off your student loan it will automatically be wiped out in the future. Usually, this happens 25 years after repayments were first due.
* If you become unfit to work your student loan will be unequivocally wiped too.
* Although it is a different kind of loan student loan is still considered a debt. Therefore you should repay it.

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