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Gap Year After College?

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    Would it be a bad idea to take a gap year after college to earn some money to help pay off uni fees early? What disadvantage would this put me at? I was planning on doing a £9k-a-year course plus maintenance and as soon as I was qualified I'd be eligible to start paying back the loan, which we've worked out is about £100,000 more than what I borrowed in the first place (after the 30 years). So I'm contemplating not going this year, getting some jobs to fund off an early repayment or at least reduce the size of my loans, and re-applying next year. What do you think? And what would be the cons of me doing this?

    Thank you!
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    (Original post by Salmaa!)
    Would it be a bad idea to take a gap year after college to earn some money to help pay off uni fees early? What disadvantage would this put me at? I was planning on doing a £9k-a-year course plus maintenance and as soon as I was qualified I'd be eligible to start paying back the loan, which we've worked out is about £100,000 more than what I borrowed in the first place (after the 30 years). So I'm contemplating not going this year, getting some jobs to fund off an early repayment or at least reduce the size of my loans, and re-applying next year. What do you think? And what would be the cons of me doing this?

    Thank you!
    Your loan will never be £100k more in real terms. Those in the worst situation might end up paying back double the loan when inflation is accounted for.

    The guide at the bottom of my post will tell you which income brackets pay what. Work out where you fall. If you are in the cash cow bracket (a very good but not insanely humongous income) you will pay back most. If you are a low earner or super high earner, you won't pay back as much. Even being in the cash cow bracket can be mitigated by early repayment from your future earnings.

    To be honest, I would just go to uni without taking a gap year. It may well turn out to be a false economy; surely it's better to qualify earlier and earn an extra year's professional wages than to slave away on a gap year for a potential job (you may not find one) which will probably only pay the minimum wage anyway, and which will come at the expense of a year's professional wage?

    http://www.moneysavingexpert.com/stu...n-fees-changes

    EDIT:
    Further cons include (these are rather cynical, sorry):
    1) You may be less lucky next year, and not get a place on your course
    2) You may be unlucky in your pursuit of a good job post-uni, in which case if you've popped out and paid off your loan, you'll be in a worse position in the long run.

    EDIT 2:
    It's also worth noting that even if your starting salary is around £30,000, predicted to go to £50,000 in thirty years (real terms) on a reasonable career track, you still won't pay off the whole loan. Anything less than that, and you'll be worse off for repaying it early.
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    (Original post by michael321)
    Your loan will never be £100k more in real terms. Those in the worst situation might end up paying back double the loan when inflation is accounted for.

    The guide at the bottom of my post will tell you which income brackets pay what. Work out where you fall. If you are in the cash cow bracket (a very good but not insanely humongous income) you will pay back most. If you are a low earner or super high earner, you won't pay back as much. Even being in the cash cow bracket can be mitigated by early repayment from your future repayment.

    To be honest, I would just go to uni without taking a gap year. It may well turn out to be a false economy; surely it's better to qualify earlier and earn an extra year's professional wages than to slave away on a gap year for a potential job (you may not find one) which will probably only pay the minimum wage anyway, and which will come at the expense of a year's professional wage?

    http://www.moneysavingexpert.com/stu...n-fees-changes

    EDIT:
    Further cons include (these are rather cynical, sorry):
    1) You may be less lucky next year, and not get a place on your course
    2) You may be unlucky in your pursuit of a good job post-uni, in which case if you've popped out and paid off your loan, you'll be in a worse position in the long run.

    EDIT 2:
    It's also worth noting that even if your starting salary is around £30,000, predicted to go to £50,000 in thirty years (real terms) on a reasonable career track, you still won't pay off the whole loan. Anything less than that, and you'll be worse off for repaying it early.
    thank you SO much, that was really helpful, but by paying off the loan does that include all the interest being added on yearly? And could I pay a little more off every week to try and reduce the amount of interest I'd be paying?
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    (Original post by Salmaa!)
    Would it be a bad idea to take a gap year after college to earn some money to help pay off uni fees early? What disadvantage would this put me at? I was planning on doing a £9k-a-year course plus maintenance and as soon as I was qualified I'd be eligible to start paying back the loan, which we've worked out is about £100,000 more than what I borrowed in the first place (after the 30 years). So I'm contemplating not going this year, getting some jobs to fund off an early repayment or at least reduce the size of my loans, and re-applying next year. What do you think? And what would be the cons of me doing this?

    Thank you!
    Taking a gap year to work is not a bad idea. I would suggest you maybe travel for a short period of time to have something to remember your gap year by.

    A gap year will only be of disadvantage to you if you are studying something like Maths or Medicine (so I've heard) because you can easily forget how to do it or something. Have you got uni places now? It might be a thought to try and defer them so you know you've definitely got somewhere to go, unis are usually fine with this.
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    (Original post by tsveta)
    Taking a gap year to work is not a bad idea. I would suggest you maybe travel for a short period of time to have something to remember your gap year by.

    A gap year will only be of disadvantage to you if you are studying something like Maths or Medicine (so I've heard) because you can easily forget how to do it or something. Have you got uni places now? It might be a thought to try and defer them so you know you've definitely got somewhere to go, unis are usually fine with this.
    I do but it's for optometry so I'd be forgetting a lot of biology and chemistry that I need. After speaking to a few people they've mentioned that the income for a year of working without a degree minus all the costs of lodge and living would leave me with barely anything to pay off some of the debt with. What do you think?
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    (Original post by Salmaa!)
    thank you SO much, that was really helpful, but by paying off the loan does that include all the interest being added on yearly? And could I pay a little more off every week to try and reduce the amount of interest I'd be paying?
    The figures on the site I linked to are for the total repayment, including interest.

    You should be able to pay off as much of your loan as you like at any time. Hence my argument that you're probably better off spending a year earning £25,000 or whatever a junior optician earns, than spending a year earning £9,000 on the minimum wage somewhere. The former will better allow you to pay off the loan.

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