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Monthly Student Loans?

A petition was released today by the National Association of Student Money Advisers to change student funding payments to monthly rather termly.

The petition is available at at http://epetitions.direct.gov.uk/petitions/55629
Reply 1
Avatar for RobEllis_UK
RobEllis_UK
OP
Anyone got any thoughts about monthly student loan payments?
Reply 2
Avatar for Psyk
Psyk
16
So what's the actual point? Surely it's just to protect students from themselves. If someone doesn't trust themselves to be responsible, couldn't they have their loan paid into their parents' account and have their parents pay them monthly? That assumes they trust their parents though.
Why don't we introduce another broken system full of holes to fix the current broken system full of holes. Yeah.
Monthly is dangerous. I've seen too many students incapable of budgeting and wouldn't trust them to pay monthly. You've also got to look at this from the POV of the university.
Do they throw people off the course four weeks into a term for non payment?
Reply 5
Avatar for sorafdfs
sorafdfs
11
Well the main issue is rent - whether uni or private it takes the largest chunk out of our loans, and when private this often includes utilities/internet. I know it differs depending on uni and landlord, but it is still often well over a grand.

Edit: also I don't know of very many student landlords who let you pay weekly/monthly
(edited 10 years ago)
In theory I guess it doesn't affect me greatly, as someone on the maximum loan and grant. The thing is do we need this though?
Reply 7
Avatar for Psyk
Psyk
16
Original post by MatureStudent36
Monthly is dangerous. I've seen too many students incapable of budgeting and wouldn't trust them to pay monthly. You've also got to look at this from the POV of the university.
Do they throw people off the course four weeks into a term for non payment?


This is about students getting their loan payments, not about paying fees.

At the moment they getting a payment every 4 months, which they could blow straight away. Monthly would make it easier for them to budget.
Reply 8
Avatar for SillyEddy
SillyEddy
18
The only real benefit I could see is that it would better represent a salary and you'd have to budget on a monthly basis. I suppose they could give out loans based on attendance and performance, but university is supposed to be a place for adults, so that would just an annoyance. Besides, the student loans company can be quite bad at dealing with issues. Payments once a month are no good if they're always going to be late or unreliable. It's easier to manage just 3 big payments instead of 9 smaller ones.

That said, students should be at a level of maturity where they can plan 4 months ahead and know how much money they have to spend. It took me all of about 5 minutes to budget for the entire term looking at the bills I have to pay, savings, etc. I know what I have and I know what I need to hold onto (which I invested in my savings so that it's hidden away but earning me some extra money).

Should they get rid of 4-month deadlines for coursework because students can't manage their time as well? No, they should improve what they're doing and go about their studies in a mature manner.
Reply 9
Avatar for RobEllis_UK
RobEllis_UK
OP
A few blog posts for anyone this intesting in this further: http://rjellis05.wordpress.com/2013/10/08/student-finance-termly-payments/ and http://wp.me/p3YSNk-1S

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