Is it worth getting a student loan even if your family can afford to pay it?
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I got the loan even though I don't need it. I do need the tuition fee loan, but luckily my parents provide me with money for food and I have a job, so I've got by without spending my maintenance loan.
I originally didn't get the loan as I didn't want the debt, but changed my mind because a) I can make a bit of money on it in a savings account and b) It's the 'cheapest' loan I'll ever get, so it's nice to have the money in case I want to put it to use in the future. If I don't need it, I'll just pay it straight off.
A few years ago you'd have been able to make quite a bit of money if you stuck it in an ISA/savings account, but I don't think it'll make much difference either way now.
I originally didn't get the loan as I didn't want the debt, but changed my mind because a) I can make a bit of money on it in a savings account and b) It's the 'cheapest' loan I'll ever get, so it's nice to have the money in case I want to put it to use in the future. If I don't need it, I'll just pay it straight off.
A few years ago you'd have been able to make quite a bit of money if you stuck it in an ISA/savings account, but I don't think it'll make much difference either way now.
Original post by my_username_was_taken
No i'm not, please explain.
What rabbits_eat_tigers was getting at is: if you don't *need* the loan. It's socially irresponsible (arguably) to take an effectively 0% loan from the government, given the current economic climate.
You aren't *actually* depriving someone else of their grant, but everyone is paying for it.
Personally, I would say take the loan. It's the cheapest loan you'll ever get, and you only have to pay it back when you can afford to. I know people who took the loan but their parents paid for them. They put the money in an ISA and made a few hundred pounds over the course of their degree.
You should look at this website, as explains all the workings far better than I could:
http://www.moneysavingexpert.com/loans/student-loans-repay#longterm
Original post by ctarling
What rabbits_eat_tigers was getting at is: if you don't *need* the loan. It's socially irresponsible (arguably) to take an effectively 0% loan from the government, given the current economic climate.
In fairness, it's socially irresponsible to spend a loan (or a grant, arguably even worse) from the government on getting drunk 4 nights a week, but this is what most people I know do.
I totally agree with your post btw, just making a point.
Original post by rabbits_eat_tigers
get your parents to pay, that way you can pay them back when you have the money and not before and some one who actually needs a grant will be able to have your place.
Crap logic. You don't phone them up to apply for a loan and get told "oh sorry, we just gave away the last one".
If you don't need the loan, take it anyway, put it in an ISA or some other savings account for three years and make a nice little profit off it before you pay it back.
Original post by my_username_was_taken
Hello guys,
My parents were going to pay university fees and living costs etc for me but I was maybe thinking with the fact most people don't pay it back entirely this may be silly as I may loose out, so would it be best just to get them to pay for the weekly repayments?
Also, any other hints and tips to save money in this situation?
Thanks in advance
My parents were going to pay university fees and living costs etc for me but I was maybe thinking with the fact most people don't pay it back entirely this may be silly as I may loose out, so would it be best just to get them to pay for the weekly repayments?
Also, any other hints and tips to save money in this situation?
Thanks in advance
Do what I'm doing:
Put your money in either a high interest investment bond, or if interest rates are still low, maybe buy some premium bonds or something.
Use a loan to go to uni, while you're making money off of your money. Are your parents paying your accomodation? If not, use a loan for that too.
Once you qualify, your parents can help you pay it back with the money, plus you've made interest. It's a win-win situation.
Original post by Potally_Tissed
Crap logic. You don't phone them up to apply for a loan and get told "oh sorry, we just gave away the last one".
If you don't need the loan, take it anyway, put it in an ISA or some other savings account for three years and make a nice little profit off it before you pay it back.
If you don't need the loan, take it anyway, put it in an ISA or some other savings account for three years and make a nice little profit off it before you pay it back.
I didn't see this before I posted my post which was pretty much the same, but yeah basically this!
Original post by Vickyy
In fairness, it's socially irresponsible to spend a loan (or a grant, arguably even worse) from the government on getting drunk 4 nights a week, but this is what most people I know do.
I totally agree with your post[ btw, just making a point.
I totally agree with your post[ btw, just making a point.
Yep, that's why I shoved in 'arguably;' Arguably the best word in the English language.
Totally printing off this sentence and framing it.
How little does someone have to be earning to not pay it all off after 25 years? Genuine question 
Original post by my_username_was_taken
Hello guys,
My parents were going to pay university fees and living costs etc for me but I was maybe thinking with the fact most people don't pay it back entirely this may be silly as I may loose out, so would it be best just to get them to pay for the weekly repayments?
Also, any other hints and tips to save money in this situation?
Thanks in advance
My parents were going to pay university fees and living costs etc for me but I was maybe thinking with the fact most people don't pay it back entirely this may be silly as I may loose out, so would it be best just to get them to pay for the weekly repayments?
Also, any other hints and tips to save money in this situation?
Thanks in advance
My parents could, and still can, afford to pay for my uni&living costs but I chose to take a loan and work.
It means I'm completely independent and hence they can't meddle in my life. So if I were to skive uni or have mates staying over at mine all the time - my parents can't have any say in that, because I'm the one responsible for my actions and I'm th one that pays.
Financial freedom = complete freedom from parents.
Original post by Huskaris
If you are getting the loan under the current system (with interest rates linked to inflation)
Get your parents to pay the fees etc.
Get the loans. Put that loan at an inflation rate which should be around 2% in a year or two, into a high savings account (some are offering as high as 4% which should raise to around 5% in a years time, although it will be a savings account where you can't take the money out to get this rate, more like a bond)
You will then be getting 3% a year profit off that loan. So will end up making a profit off being a student. 5% a year, compounded, will be a nice amount bythe time you are beginning to look at a house..
Get your parents to pay the fees etc.
Get the loans. Put that loan at an inflation rate which should be around 2% in a year or two, into a high savings account (some are offering as high as 4% which should raise to around 5% in a years time, although it will be a savings account where you can't take the money out to get this rate, more like a bond)
You will then be getting 3% a year profit off that loan. So will end up making a profit off being a student. 5% a year, compounded, will be a nice amount bythe time you are beginning to look at a house..
This. I'd want to point out in particular First Direct's 8% regular saver account (£300 a month deposit max) and HSBC's 4% regular saver (same conditions, 8% if HSBC Premier/Advance) as being good places, and stick the rest in a standard savings account.
This thread is a perfect example of why financial institutions are able to rip of so much money from the general public.
Original post by Nick Longjohnson
This thread is a perfect example of why financial institutions are able to rip of so much money from the general public.
Really? Or maybe your comment is just a perfect example of people who will bring banks being evil into any conversation without having any knowledge of the financial system other than what mummy, daddy, and "my socialist mate" tells us?
Edit:I have just looked at your spoilers and would like to retract any malice from my statement and buy your pint, as I am now thoroughly amused, many thanks :-)
(edited 13 years ago)
Original post by my_username_was_taken
Yes, but lots of graduates never pay it all back so I may be wasting money. Also the loan is at a VERY low interesat rate compared to debt so this could be useful.
i be honest here, I'm planning to get the max of everthing even though i dont really need to. I'm not going to ask my parent for money (or at least as little as possible) and pay every thing as fast as possible with my big earnings
Original post by Huskaris
If you are getting the loan under the current system (with interest rates linked to inflation)
Get your parents to pay the fees etc.
Get the loans. Put that loan at an inflation rate which should be around 2% in a year or two, into a high savings account (some are offering as high as 4% which should raise to around 5% in a years time, although it will be a savings account where you can't take the money out to get this rate, more like a bond)
You will then be getting 3% a year profit off that loan. So will end up making a profit off being a student. 5% a year, compounded, will be a nice amount bythe time you are beginning to look at a house..
Get your parents to pay the fees etc.
Get the loans. Put that loan at an inflation rate which should be around 2% in a year or two, into a high savings account (some are offering as high as 4% which should raise to around 5% in a years time, although it will be a savings account where you can't take the money out to get this rate, more like a bond)
You will then be getting 3% a year profit off that loan. So will end up making a profit off being a student. 5% a year, compounded, will be a nice amount bythe time you are beginning to look at a house..
When does the current system end? OI am going to university in 2011 so will I still be able to get it?
Also thanks for that great post, that is what i'm going to do
Original post by my_username_was_taken
When does the current system end? OI am going to university in 2011 so will I still be able to get it?
Also thanks for that great post, that is what i'm going to do
Also thanks for that great post, that is what i'm going to do
I believe that the new system will come into play at the beginning of the September 2012 academic year. I don't believe that the interest rates will change for those who ALREADY have loans or have already started getting them as that seems... Well.. Unbritish really.
Original post by TheouLiS
Hello! I come from Greece and I'd like to know whether I can take the Student loan as UK students.
Also, is there an increment at the total I'll have to pay if I take the loan?
And what if I come back to Greece after I graduate?
Also, is there an increment at the total I'll have to pay if I take the loan?
And what if I come back to Greece after I graduate?
I think you will need to be in the UK three years prior to entering uni. If you are coming straight from Greece then you will get the support from Greece. This is I think how it works, but they might change some of the rules.
I just use the loan as extra money - means I can afford to do things a lot of uni students can't, plus I'll have some at the end so I can have my trip to Vienna.
If I get to the end and still have lots left, I can pay it back and have a reduced loan; if not, it's a risk-free loan and you only pay back what you can afford.
If I get to the end and still have lots left, I can pay it back and have a reduced loan; if not, it's a risk-free loan and you only pay back what you can afford.
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