Should I pay off my Plan 1 student loan?
In this video Martin answers a question that is commonly asked - "should I pay off my student loan?". Here, Martin purely answers about Plan 1 loans – that is anyone who studied anywhere in the UK between 1998 and 2012, and Northern Irish students from 2012 onwards.
Just a note, in this video Martin also mentions that Scottish students are also on plan 1 loans. But since April 2021 Scotland changed its system and is now on a different Plan 4 loan for both new and existing students. Whilst some of the details may apply to Scottish students, some won't. So for full details on Plan 1 loans and Plan 4 loans for Scottish students see the detailed Student Loan Repayment - Is it better to save or pay it off guide.
Some of the figures mentioned in this video have changed since the video was made. The following figures are the rates and thresholds for 2022:
- Plan 1 repayment threshold is now £19,895
- Plan 2 repayment threshold is now £27,295
- The rate of inflation is currently 1.5%
- Bank of England base rate is 1.25%
- Plan 1 interest rate is 1.25%
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