Student Loan Debt Advice

Student loans are a fact of life for most students as financial support from the government has all but disappeared and universities charge tuition fees. Student loans are one of the cheapest methods of borrowing since the interest rate is tied to the inflation rate.

Student loans taken out after 1998 are paid back automatically through your monthly salary as a percentage of any earnings over a threshold set by the government. Loans prior to 1998 are repaid over a five year period, although repayments may be deferred until a later date if you do not earn enough.

It is possible to pay off your student loan more quickly, but given the inflation-linked interest rate, it is better to use any spare cash to pay off other debts rather than your student loan.