Student Loans Company 3.2% - pay off or not?
#1
Scooby Regular
Thread Starter
Join Date: Nov 2000
Location: 32 cylinders and many cats
Posts: 18,658
Likes: 0
Received 1 Like
on
1 Post
Student Loans Company 3.2% - pay off or not?
My wife and I have a little left to pay off on our Student Loans which are locked to the retail price index at 3.2%, so almost free money as I have thought of them up to now.
However, are we better paying them off now since the rate on deposits are not massively higher and we'd be liable to tax on those anyway? Haven't done cash ISAs this year as didn't want to prevent doing shares ISAs, and didn't want to leap straight in with shares ISAs as the performance over the last several years has been crap, even recent growth has not recovered our earlier losses quite yet. Not a good argument!??
So, pay off the 3.2% loans or do something else? The do nothing option is to put it in I&G Direct.
However, are we better paying them off now since the rate on deposits are not massively higher and we'd be liable to tax on those anyway? Haven't done cash ISAs this year as didn't want to prevent doing shares ISAs, and didn't want to leap straight in with shares ISAs as the performance over the last several years has been crap, even recent growth has not recovered our earlier losses quite yet. Not a good argument!??
So, pay off the 3.2% loans or do something else? The do nothing option is to put it in I&G Direct.
#3
hi, pay it off, unless you've any other loans, credit/store card bills or overdraft at a higher %.
do you have a morgage it could go towards instead, taking into account penalties etc?
cheers matt
do you have a morgage it could go towards instead, taking into account penalties etc?
cheers matt
Thread
Thread Starter
Forum
Replies
Last Post