Saved all of my grants and loan...

So basically, at the start of the year I was given a maintenance loan and grant allowance. However, due to me receiving some help in paying for my rent off the council for being a care leaver, I haven't spent any of the loan or grant (I have always been like this and feel bad for spending money so I save every last penny I can). Therefore, any money I have spent of my student loan I always put back in as soon as possible, leaving me with 8 grand in the bank in my first year. I was wondering instead of applying for student finance next year is it wise to live off of my savings I acquired this year, which equals less debt? I feel as though it's unfair to borrow more money than I need, I'm doing a social work degree at the moment. Shall I not apply for any help off student finance next year at all, or maybe a small grand loan incase I ever get stuck or something happens? I have posted on another thread about this and got nothing but stick off people, I don't go out spending all my money like students are known for, I'm a really big saver so no negative comments please!!

Id recommend getting a student loan this year

But it's useless applying for more because in the long run I'm sitting on this money but the interest the student loans will gain means it's pointless because I will be owing a lot more??

Are you in your second year?

First year

Definitely take the loan and put all your spare money in a high interest account. The interest should be above the current student loan interest rate (3.9%) to be worthwhile. TSB have a 5% interest account and First Direct do a 6% one so go looking, they are out there. Just watch for caps (e.g. TSB only pay 5% up to £2000) and make sure you can get the whole loan placed in high interest accounts if possible.

In all honesty, whether you can do that or not, I'd take it and save it anyway. You won't pay off the loan until/unless you earn over 21k, and it's wiped after 30 years which may sound like a long time, but I'm repaying about fifty quid a month and it's likely I'll never pay off what I owe before it's wiped. Essentially it's a very cheap loan (and if you work your savings right, you may even earn a bit), I'd take advantage of it if I were you.

Student loans are pretty much the best ones you'll get in your entire life don't throw that away just because you have a decent amount right now. Also remember that you get grants which is completely free money from the Government

I have received 3500 in maintenance grants and 5000 on maintenance loan. I was just worried incase I actually failed my degree and have all of this money in the bank that I will have to essentially return, because if I fail the grants are repayable leaving me with no money. I am going to speak to a student finance advisor to see what they suggest. Thanks for the advice

Thats true but you shouldnt really be thinking about failing unless you've already gotten some feedback from assignments.

I've also been told by a lot of people that I have made a big finance mistake by not spending it because you can get in trouble with student finance. However, that doesn't make sense because it's basically saying I need to spend it all... Thank you for the advice, I'm going to a bank today then to speak to an advisor on what's best to do. I was thinking an ISA but a few people have told me it wouldn't be safe. Also, if I fail my course which I'm not expecting to do, are student finance allowed to make you start paying it all back without earning 21000 grand a year ?? 50 pound a month isn't bad at all if you are earning a good wage, thank you for the information.

The advisor sounds like a great idea - ISAs are generally not the best option now as current accounts tend to offer higher interest, to attract customers. It used to be that an ISA was still a better idea even with a slightly lower interest rate, as you didn't pay tax on interest earned, but that's recently changed so you won't pay tax on interest from savings accounts either. So just go for whatever gets you the best interest. Santander's 123 account is worth a look as you have quite a hefty chunk saved and they'll give you 3% up to £30000, plus cashback on your household bills. Not bad at all.

You should be fine with student finance, if they confirm you're entitled to the money it's none of their business what you do with it. Just be careful about declaring your savings every time you apply and then they can't complain.

The advisor sounds like a great idea - ISAs are generally not the best option now as current accounts tend to offer higher interest, to attract customers. It used to be that an ISA was still a better idea even with a slightly lower interest rate, as you didn't pay tax on interest earned, but that's recently changed so you won't pay tax on interest from savings accounts either.

That isn't quite correct:
If you don't earn enough to be taxed, you won't pay tax on your savings. For those who do pay tax, you do get an allowance of £1000 from April 2016.

Get the loan.

Even if you just chuck the 8 grand in a high interest account you're better off having it than not.
Personally, I'd rather do some deals rather than chuck it in an account...

Get the loan.

Even if you just chuck the 8 grand in a high interest account you're better off having it than not.
Personally, I'd rather do some deals rather than chuck it in an account...

I don't no what you mean by some deals haha, I've only just turned 19 last month and my mother has never really been a high earner plus don't have much contact with her so I'm pretty much left on my own with all this money that I have no idea what to do with. So high interest account seems more straight forward and easier to understand, everyone on this post has basically explained it and it would be a good idea to take out a loan next year. I'm just not going to take a loan out the third year as I am also going to get a part time job so won't find it to hard to live off what I'm earning. Thanks for the reply 😁