Is it worth getting a student loan even if your family can afford to pay it?
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Original post by mackemforever
Yes it is.
I know somebody who was in a similar situation to you. Well, his parents couldn't pay for him but he had been running his own web design business for about 3 years and on his gap year he ended up making a profit of just under £40,000 (after tax) so paying for the course was no problem.
What he did was take the maximum possible level of student finance he could get and put every penny of it in the highest interest savings account he could find. As a result he gets a decent level of interest on it and as soon as he graduates from University he can pay back all of the student finance in one sum but he keeps all the interest from it.
I know somebody who was in a similar situation to you. Well, his parents couldn't pay for him but he had been running his own web design business for about 3 years and on his gap year he ended up making a profit of just under £40,000 (after tax) so paying for the course was no problem.
What he did was take the maximum possible level of student finance he could get and put every penny of it in the highest interest savings account he could find. As a result he gets a decent level of interest on it and as soon as he graduates from University he can pay back all of the student finance in one sum but he keeps all the interest from it.
Haha, that's awesome! He did really well thanks for sharing that. Did he go around sharing that? I mean, I don't know about you but I wouldn't as people would probably get jealous and treat you differently, or expect you to buy lots of rounds as people seem to believe people who are well off can spend lots even though the truth is if they spent lots they wouldn't be well off
Original post by goldenGAZE
I'm thinking about taking out a maintenance loan even thought i live at home and don't need it. Mainly it's because i'm very sure i want to do a masters degree after my undergrad and the money can go towards funding it (since i don't think you can apply for a student loan for masters). Good idea?
Yes, definitely from what I have learnt in this thread. ASLONG ad you actually invest the money in a savings account or other investment means and DON'T spend it or else you'll end up loosing money as you'll end up spending more than you make back in interest!!
Also, why would you turn down a way to get money for free that's legal and requires basically no effort!
Original post by calannra
I wish I was lucky enough to have parents who would pay my fees for me!
lol, this.
Although to be fair I quite like being independant and knowing that I'm paying for my future. Having said that, I certainly wouldn't say no if someone offered to pay for me
Original post by iainthegreat
lol, this.
Although to be fair I quite like being independant and knowing that I'm paying for my future. Having said that, I certainly wouldn't say no if someone offered to pay for me
Although to be fair I quite like being independant and knowing that I'm paying for my future. Having said that, I certainly wouldn't say no if someone offered to pay for me
Haha exactly! if someone offered to pay your fees I doubt anybody would decline it unless their were some ridiculous conditions attached like you must live with your parents all your life haha.
The way I see it:
As soon as university's over, you might be looking at saving up for a deposit and trying to get a mortgage for your first house. It's beneficial to save up your deposit quickly, because the longer you take over it, the longer you'll have to lose money in renting a place. Plus, if you've got to borrow money to buy a house anyway, you might as well borrow as much of it as you can from the student loans company who are charging low interest, and as little as possible from the mortgage lenders who will charge higher interest.
At this stage in life, I'd never say no to free (or cheap) loans. And if worst comes to worst, and you find that you didn't need the money at all anyway, you just give it back (plus a tiny amount of interest). The potential for loss isn't that much, but it could save you a lot of money if you use it properly.
As soon as university's over, you might be looking at saving up for a deposit and trying to get a mortgage for your first house. It's beneficial to save up your deposit quickly, because the longer you take over it, the longer you'll have to lose money in renting a place. Plus, if you've got to borrow money to buy a house anyway, you might as well borrow as much of it as you can from the student loans company who are charging low interest, and as little as possible from the mortgage lenders who will charge higher interest.
At this stage in life, I'd never say no to free (or cheap) loans. And if worst comes to worst, and you find that you didn't need the money at all anyway, you just give it back (plus a tiny amount of interest). The potential for loss isn't that much, but it could save you a lot of money if you use it properly.
Original post by my_username_was_taken
Haha exactly! if someone offered to pay your fees I doubt anybody would decline it unless their were some ridiculous conditions attached like you must live with your parents all your life haha.
A word of warning, you will get people who begrudge you for having everything paid for you, but I guess you'll just have to learn to put up with it. Out of interest are your parents paying for your accommodation or fees or both?
Original post by iainthegreat
A word of warning, you will get people who begrudge you for having everything paid for you, but I guess you'll just have to learn to put up with it. Out of interest are your parents paying for your accommodation or fees or both?
Yeah I was thinking about this and thus decided not to tell anybody at all about my funding.
I was suprised a previous poster knew about someone who made 40,000 in his gap year, I mean many people would treat him differently, probably out of jealousy. I presume there's no easy way they can tell about it is there?
I mean don't want to be expected to buy lots of rounds or spend more money than the usual student, I mean people seem to believe people who are well off can spend lots even though the truth is if they spent lots they wouldn't be well off
Any other things I should be aware of?
They are paying for accommodation and fees and food I think.
Original post by my_username_was_taken
Haha, that's awesome! He did really well thanks for sharing that. Did he go around sharing that? I mean, I don't know about you but I wouldn't as people would probably get jealous and treat you differently, or expect you to buy lots of rounds as people seem to believe people who are well off can spend lots even though the truth is if they spent lots they wouldn't be well off
Nah, he didn't publicise it. Its not like he spent a lot either, he put almost all of it into savings. Throughout 6th form the only signs that he was very well off were the fact that he owned a pretty damn nice motorbike (cost him around £7k) and a Rolex (around £6k), but nobody knows how to tell how much a motorbike is worth and most people wouldn't recognise the rolex for what it was unless they took a proper look.
Tbh most people didn't even know that he ran his own business! I only know because I've been mates with him since we were about 5.
Original post by my_username_was_taken
Yeah I was thinking about this and thus decided not to tell anybody at all about my funding.
I was suprised a previous poster knew about someone who made 40,000 in his gap year, I mean many people would treat him differently, probably out of jealousy. I presume there's no easy way they can tell about it is there?
I mean don't want to be expected to buy lots of rounds or spend more money than the usual student, I mean people seem to believe people who are well off can spend lots even though the truth is if they spent lots they wouldn't be well off
Any other things I should be aware of?
They are paying for accommodation and fees and food I think.
I was suprised a previous poster knew about someone who made 40,000 in his gap year, I mean many people would treat him differently, probably out of jealousy. I presume there's no easy way they can tell about it is there?
I mean don't want to be expected to buy lots of rounds or spend more money than the usual student, I mean people seem to believe people who are well off can spend lots even though the truth is if they spent lots they wouldn't be well off
Any other things I should be aware of?
They are paying for accommodation and fees and food I think.
They definitely won't expect you to pay for drinks for them, maybe they will joke about it, saying you've got to come out you're loaded etc
I would keep it relatively quiet though, because you don't know how some people will react to it. Definitely don't brag about it. There might be some jealousy but it's probably not worth getting to know those people anyway. I wouldn't worry too much, just enjoy yourself.
Original post by iainthegreat
They definitely won't expect you to pay for drinks for them, maybe they will joke about it, saying you've got to come out you're loaded etc
I would keep it relatively quiet though, because you don't know how some people will react to it. Definitely don't brag about it. There might be some jealousy but it's probably not worth getting to know those people anyway. I wouldn't worry too much, just enjoy yourself.
I would keep it relatively quiet though, because you don't know how some people will react to it. Definitely don't brag about it. There might be some jealousy but it's probably not worth getting to know those people anyway. I wouldn't worry too much, just enjoy yourself.
Isn't it still better not to tell anybody and pretend i'm on student loans though to avoid any potential problems? I certainly won't brag about it.
Original post by my_username_was_taken
Isn't it still better not to tell anybody and pretend i'm on student loans though to avoid any potential problems? I certainly won't brag about it.
I would just tell people that your parents help you out. Two of my flatmates have their accommodation paid for them, and I don't see what the big deal is about telling people that. I wouldn't tell everyone that they pay for your food as well though, people might think that's a bit much.
Don't tell people immediately. Just wait and see and decide when you are there. No point causing unnecessary problems. I knew lots of people who had their accommodation paid for by their parents so we were all happy to talk about that, but generally I try to avoid discussing those things unless I have to.
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