December 2024 • 6 min read
Extra Payments on Student Loans: Should You Pay More?
Discover how paying extra can save you thousands and accelerate your path to being debt-free.
The Power of Extra Payments
Making extra payments on your student loan might seem like a luxury, but even small additional amounts can have a dramatic impact on your total repayment costs and timeline.
Example: An extra £50/month could save thousands in interest
How Extra Payments Work
When you make extra payments on your student loan:
- The extra amount is applied directly to your loan principal
- This reduces the balance on which interest is calculated
- Less interest accumulates over time
- Your loan is cleared sooner
Real Example: Impact of Extra Payments
Without Extra Payments
Monthly: £150
Interest: £8,500
Period: 30 years
With +£100/month
Total: £250
Interest: £4,200
Period: 18 years
Savings: £4,300 in interest + 12 years sooner!
When Should You Make Extra Payments?
Good times to pay extra:
- ✓ When you receive a bonus or pay raise
- ✓ When you've paid off other debts
- ✓ If you have spare income after expenses
- ✓ At the end of the financial year
When to be cautious:
- ⚠ If you have higher-interest debt
- ⚠ If you have no emergency fund
- ⚠ If you're struggling with other expenses
- ⚠ If you're considering moving abroad
Calculate Your Savings
Use our calculator to see exactly how much extra payments could save you.
See Your Potential Savings