Should I overpay my student loan or invest? Ask us anything

Alfie has £45k of student debt at 7.1% interest. He asks "Should I focus on trying to take chunks off this debt, with my yearly bonus, or invest it?"

--

--

--

Here are some of the biggest investment platforms in the UK - and Damo uses all of them too.

Some of these are affiliate links. If you purchase a product or service using one of these links, we will receive a small commission from the seller. There will be no additional charge for you.

Remember investments can fall and rise - and past performance is no guarantee of future results. Other fees may apply. Your money is at risk.

InvestEngine
Get a £25 bonus when you invest at least £100.

Vanguard
This is not an affiliate link.

Trading 212
Get a free share worth up to £100 when you sign up for a new Invest or ISA account and deposit at least £1.

If you do not get your free share after depositing at least £1, use the promo code ‘MM’ (for Making Money). You can use this code for up to 10 days after opening the account.

--

This is not financial advice. The reason it’s not financial advice is because it’s not tailored to you. We explain the principles of building wealth but if you want personalised advice, it’s worth speaking to a financial advisor. As with everything financial, please do your own research. We really encourage that because no one cares more about your money than you and if you learn the basics then it will change your life.

[mooremoneymakin]

Hard to say for sure but as a general rule, unless your income is well above average, you're probably better off investing. It's more of a graduate tax than a loan.

[Life_Literacy]

Love the relaxed chat nature of these videos, great podcast fellas.

[onmytravells]

Salary sacrifice into a pension.... invest and you won't get student loan taken off the amount

[milaskilathelab]

Absolutely right. Never went to Uni, education to provide mostly essential services in the long run and to cripple you while you do it... Hmm

[XxJackxX]

14% interest rhis year for student loan.. going to be paying this for the rest of my life considering the insane interest ... graduate tax

[ollieL]

I made the mistake of looking at my student finance amount I've been employed in the public sector, paid well for the last 6 years and my debt hasn't changed - 47k paying 7% interest 🤢

[rossmacintosh]

Here in Canada student loans can never be forgiven (except for some medical professional who fulfil specific criteria for eligibility). Not even bankruptcy will forgive a student loan. I find it kind-a shocking hearing that in the UK they will be forgiven and even more surprising to hear Damo suggesting not paying them off. My whole way of thinking is if you took the loan, you pay the damned thing off! When everyone won't take personal responsibility and expects the taxpayers to bail them out you have a huge problem as a society. You're screwing yourselves!