Is it worth applying for a manitenance loan as well as a grant?

So i'm applying for student finance for my 3rd and final year. I have applied for the standard 9k tuition fee and a maintenance grant of 3.8k. Im not sure if i should apply for a maintenance loan though.

I'm working flat out during summer so that i can have some money for myself. I'll be living at home so i'll save a lot of money and the only expenses are just books, food, petrol for my car, insurance e.t.c

When it comes to repaying this back, will it mess up my credit score and will i be paying it off for a long time or does it just come out of your payslip once you're earning over £21k??

Any help and advice is appreciated.

Reply 1

subject1

Original post by Silver Arrow

Student finance does not affect your credit score, it doesn't show up at all.

Reply 2

Silver Arrow

Original post by subject1

Student finance does not affect your credit score, it doesn't show up at all.

So i can go ahead and apply for the maximum maintenance loan? There was something there about having o pay it early and/or that it adjusts itself.

Reply 3

Dusky Mauve

It just comes out your payslip. Take it, it's the best loan you'll ever get.

Reply 4

subject1

Original post by Dusky Mauve

It just comes out your payslip. Take it, it's the best loan you'll ever get.

not if you plan to be ambitious and have a salary that will mean you will be able to fully pay your loan.

Reply 5

Dusky Mauve

Original post by subject1

not if you plan to be ambitious and have a salary that will mean you will be able to fully pay your loan.

Even then you're paying it back at a much slower rate than you would any other loan. You'd hardly even notice the money was gone if you're earning enough to pay it all back.

Reply 6

subject1

Original post by Dusky Mauve

Even then you're paying it back at a much slower rate than you would any other loan. You'd hardly even notice the money was gone if you're earning enough to pay it all back.

As the maintenance loan probably isn't a necessity for the OP (hence why the OP is considering it), is it really worth getting the loan? The loan doesn't exactly have a low interest rate.

If a student has £39000 in debt and a constant salary of £27000 (which is an unlikely scenario as it should increase overtime), and at an interest rate of 2%, the student would still repay it after 28 years.
- So, you don't exactly have a lot to have to pay it all back.

Reply 7

Silver Arrow

Original post by subject1

So is it worth applying for the loan then? I'm confused now.

Reply 8

Tiger Rag

Original post by Silver Arrow

So is it worth applying for the loan then? I'm confused now.

You may never know when you may need it.

Reply 9

Klix88

Original post by Silver Arrow

So is it worth applying for the loan then? I'm confused now.

Unfortunately we do not know your personal financial circumstances and we're even less able to predict your future than you are.

You just have to make the decision for yourself.*

Reply 10

Silver Arrow

Original post by Klix88

Unfortunately we do not know your personal financial circumstances and we're even less able to predict your future than you are.

You just have to make the decision for yourself.*

That's not useful. Will i only pay it back once i start earning over a certain amount and also will it affect my future life in terms of credit ratings?

Reply 11

Tiger Rag

Original post by Silver Arrow

That's not useful. Will i only pay it back once i start earning over a certain amount and also will it affect my future life in terms of credit ratings?

You pay it back once you start earning over £21k per year. It's 9% of your earnings. It won't affect your credit rating.

Reply 12

subject1

Original post by Silver Arrow

That's not useful. Will i only pay it back once i start earning over a certain amount and also will it affect my future life in terms of credit ratings?

£21000, and as I said, it does not affect your credit rating, and that's because it isn't really a loan provided by financial institutions, but rather, by the government.