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Student Loan Repayments

Hey all,I have a quick question regarding the repayments of my student loan. I am currently on a scholarship that encourages me not to use my loan (but I have to apply for the full amount).

I'm commencing my second year, and with the full maintenance loan in my account, it's getting rather difficult to budget. I have researched the suggestion of paying it back, but have received advice not to pay it back, as the interest rates are lower than any other loan and so the student loan may be required in the future.

I opened up a flexible ISA, but I am unsure if I can put the student loan into said account. I was wondering if anyone else has done this before?Thank you

Reply 1

Klix88

Original post by Fanticipation

I opened up a flexible ISA, but I am unsure if I can put the student loan into said account.

You can do whatever you like with your SF loan once you get it - nobody monitors your use of that money.

Having said that, with interest rates being so low at the moment, you'd have to work hard to ensure that you don't make a loss i.e. earning less interest on the ISA than SF will charge.*Of course it may be worth taking a financial hit in order to have the lump sum available in future, for something like a mortgage deposit, car purchase etc. Few fresh graduates can muster the collateral to get a commercial loan and a few thousand pounds in the bank might be very useful. Depends on your circumstances, aspirations and prospects.