Tristan Noyes considers whether repaying a student loan (or repaying your children’s loan) is a good idea.
Graduates leaving university in 2026 typically start their working life with around £50,000 in student loan debt.
Repaying a student loan seems, on the face of it, like a good idea; you pay interest on the loan, so repaying it reduces the interest. On the current Plan 5 (students starting since August 2023), the interest rate is currently 3.2%, but for those on Plan 2 (students starting Sept 2012 to July 2023), the rate is higher, ranging from 3.2% to 6.2% depending on income.
