Thursday 30th of April 2009
Paying off student loans early "makes sense" if graduates can afford to do so, it has been noted.
Ricky Bruce, financial researcher at Moneyfacts.co.uk, explained that consumers should be looking to get rid of whatever debt is costing them the most.
However, with rising numbers of people struggling to make ends meet due to the economic downturn - finding a way to repay debt at all may be more of a concern for many graduates.
Those who have student loans are not able to have these written off through bankruptcy, but a debt management plan could help them organise their finances.
Mr Bruce, meanwhile, called for greater information to be given to graduates about what will happen to interest rates since retail price index (RPI) inflation has dipped below zero per cent - as student loans are linked to this.
"It would be useful for them to actually tell us what’s going to happen because at the moment people are in the dark," he said.
RPI inflation stood at -0.4 per cent in March, according to the Office for National Statistics.
