Money Lesson Single

Don't rush to clear the student loan

You hate owing tens of thousands of pounds and you want it gone. But this debt comes out of your pay only above a threshold, is cancelled after thirty years whatever is left, and clearing it early is a purchase you cannot undo.

Employment Expenses Education ISA

Invest it instead

2 Goals

The loan is left to its automatic deductions, and every spare pound goes into a stocks and shares ISA from day one.

Try this plan

Employment Expenses Education ISA

Clear the loan first

2 Goals

Every spare pound is thrown at the loan until it is gone, and only then does the investing start.

Try this plan

Invest it instead Clear the loan first

Leaving the loan alone and investing the same money leaves you ~£187k wealthier, and the loan clears itself: the side that wins the race against the write-off is the side that paid for a debt it never had to.