[StylaBoy]

I'm just doing my finance app form and it asks me whether I wanna apply for the full amount I'm entitled to. My parents are saying, if I will be paying interest on it, I should only take a part of it.

thanks

[agoetcherian]

(Original post by StylaBoy)
I'm just doing my finance app form and it asks me whether I wanna apply for the full amount I'm entitled to. My parents are saying, if I will be paying interest on it, I should only take a part of it.

thanks

Nope, not interest free. I think it's 3% interest plus inflation. But it's important to note that you may not end up paying the whole thing back, as it's cancelled after 30 years, so unless you start on a particularly high salary, you won't pay back the entire amount, especially if you're on a long course (e.g. architecture).

[Shani]

No it's not interest free.

Under the new system, the interest is as follows:
While studying: Accrues RPI inflation plus 3% on the outstanding balance. This continues until the first April after graduation when it changes to…
After studying, earning under £21,000: Accrue RPI inflation.
After studying, earning £21,000 - £41,000: The interest rate will gradually rise from RPI to RPI plus 3% the more you earn (the interest rises 0.00015% for every extra pound you earn or, put another way, if you earn £1,000 more you accrue 0.15% extra interest). These thresholds are likely to rise with average earnings from 2017.
After studying, earning over £41,000: Accrues RPI inflation plus 3%.

[StylaBoy]

I see. So what are you going to do guys? 50/50 ?

[Coulson72]

take the loan and worry later. Its not as if its gonna make a huge difference to my income unless i end up on something like 50k but even then it'd only take off 3k

And dont forget its more a tax than a loan in actuality.

[agoetcherian]

You may as well have it while you need it. Unless you want to wholly rely on your parents (even the full loan without any extra bursaries probably wouldn't sustain you).