Paying back your student loan is a good idea? 

Well, not really... even if you are a millionaire!

It's prudent to state that if you have any debt, mortgage, unsecured loan, car loan, credit card debt... pay it off as soon as you can.

But remember, your student debt is very different to any other form of debt. You only pay interest on what you owe once you earn above salary thresholds. For those nurses who will remain on a lower band or wish to work fewer hours, you'll probably never earn enough to pay the loan off in full and after 30 years it's wiped... In short why pay off something early when you don't need to!

Let's also consider that you earn well above the threshold and are paying 5.4% (current RPI +3%) for the loan. You could invest your money elsewhere and earn at least 7-8% interest on other saving schemes even as high as 10% if you're a savvy investor.


12 myths about student loans: fact or fiction?