Paying for student loans

manpreet Best Answer 2 years ago

I am looking for some advice in paying off student loans for me and my girlfriend. As a disclaimer, I am unfortunately quite financially illiterate, but looking to improve.

We are both living in the EU, with identical loans from student finance UK, amounting to about 20K with interest of about 6%. As per the contract, the interest is variable.

The default repayment scheme is 9% over some common sense threshold of the income. If no income, there is no repayment.

We were thinking about paying off the loans faster to avoid paying too much interest. The problem is that we don't earn too much as of now, being at the beginning of our careers. Therefore, what would be the best approach?

• Work on paying one loan, and then the other
• Pay the same towards both of them
• Do not make paying off the loans a priority just yet and pay the minimum until we are in a better financial position (here i'm basically asking how much importance/urgency should we have for this matter)