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Should I borrow the maintenance loan? watched

Basically, I should have enough money to get me through the year with the money I have already (just about, with very little extra), and so if I do borrow the maintenance loan from Student Finance (about £3000 - 4000), then I would probably use it for other means (like investing/saving it).

Would it be worth having access to the extra money so I can use it (although not essential as I can cover my costs anyway), or would it be best to not borrow it given the interest rates associated, i.e. RPI+3.

Many thanks!

Reply 1

claireestelle

It's worth having access to the extra money as a safety I think

Reply 2

subject1

Original post by claireestelle

It's worth having access to the extra money as a safety I think

The thing is, I probably won't need it so borrowing more will just be for investment but costs in terms of the interest. but extra money is definitely useful i guess!

Reply 3

claireestelle

Original post by subject1

The thing is, I probably won't need it so borrowing more will just be for investment but costs in terms of the interest. but extra money is definitely useful i guess!

You could always take the minimum loan just to be safe, and stick it in a current account with interest and if it turns out you didnt need any at all you could always pay it back.

Reply 4

BirdIsWord

Are you just really rich?

Reply 5

subject1

Original post by BirdIsWord

Are you just really rich?

haha I wish. I just have exactly the money needed to survive a year without having to rely on the loan (and literally exactly, with no extra), so any further money will go into a savings/investing account.

Reply 6

subject1

Original post by claireestelle

You could always take the minimum loan just to be safe, and stick it in a current account with interest and if it turns out you didnt need any at all you could always pay it back.

but with the maintenance loan's interest (RPI+3, which is way higher than any savings account's interest) I will likely to be worse off if I borrow it, not use it, and pay it back. I guess having the money would be good just to be safe though.