UK Student Loans – SB or BS ?
UK Student loans, and more particularly the repayment of them, is a hot topic in the news at the moment. There are particular concerns about the affordability of the legacy (i.e. Plan 2) scheme which still applies to all loans taken out before August 2023. The terms of this loan scheme has resulted in crippling interest rates due to the built-in 3% surcharge above RPI, and the recent and quite prolonged spike in inflation. The government is under pressure to act on this, and many are even starting to question whether a university education is really still 'value for money' in the 2020s, given the high cost, and the poor quality of some of the courses offered. To help crystallise ideas for the prospective (or indeed established or ex-) student, I thought now would be a good time to take a closer look at the ‘nuts and bolts’ repayment side of things. In particular, one question that regularly comes up is: “… Should I or shouldn't I over-pay in order to reduce the bal...