Depends, what interest rate do you pay on the loan? Personally, I fully use my student loan for investing as it’s at 0% interest (at least for 5 years) and I only have to start making the first minimum payments 2 years after I stopped studying after which I have 15-35 years to pay it off (if the interest rate changes significantly I would pay it off/stop borrowing but it’s set for at least 5 years).
I’m never gonna get a cheaper loan than this so I’m making full use of it but it might also give you peace of mind knowing that you don’t have that debt
I live in the UK, that means the interest rate is Retail Price Index (RPI) + 3%, as for now it’s 4.2%. Now my repayments are 9% of all my earnings above £2,274 a month (as for now, at least what the website says). And after 30 years whatever I have not paid, will be cancelled.
That seems quite high, but its been a few years since I’ve had mine paid off(I did not overpay).
To your question - if you let it ‘ride’ so to speak, do you think you would have it paid off in 30 years?
You need to look at it in different ways and how it would best work for you. Do you own a property for example, and if so, have you paid off more than 40% of its ‘value’ to get access to the cheapest mortgage rates?
Also - do you think you may ever need the value of your investments for another purpose - once you have overpaid, you cant ask for it back.
You could also look at it that your investments have not just a 4.2% headwind as well, as Etypsyno says really.