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Is it worth getting a student loan even if your family can afford to pay it? Watch

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    (Original post by monkeyDace)
    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.
    If I have to get support from Greece, I'd better die.. :P Haha :P

    No support then..
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    (Original post by my_username_was_taken)
    Also, any other hints and tips to save money in this situation?
    As others have said still take the loan. It's the only time in your life that you'll get what is, in effect, an interest free loan.

    Interest rates in ISAs aren't as generous as they were given the economic crisis. I know the interest I gained in the last tax year was abysmal (and I switched from Halifax to Alliance and Leicester because of its interest rate...). But, if you're wise, you'll still be able to get

    I was in a similar situation this year. I changed to part-time study and assumed I wasn't entitled to the loan and grant (only the part-time grant). I found out in early October that I was entitled to the loan and, now I'm 25 (so my parents income is no longer taken into account) I'm getting the 1k grant. I've still decided to take the loan, even though I was just about able to cope without it, as it provides that extra comfort in case of emergency. If I don't use it then it just stays in my ISA. But I admit that I have spent almost all of this first installment :p: Too much book buying thanks to poorly stocked library

    (Original post by monkeyDace)
    If dont need to loan there is no point in getting into debt, but you should try getting the grants since you dont have to pay it back.
    A student is not really getting into debt if they earn enough interest (through placing it in a savings account) then pay it off immediately once you graduate.

    (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.
    It's not a grant. It's a loan. Even if it were a grant, the OP isn't "taking" a grant that can go to another person. If that person is eligible for the grant then they'll get it.

    (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.

    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.
    If you mean taking the loan is socially irresponsible then I don't agree as it'll be paid back.

    But if you just mean taking the grant then I still don't really agree with this. One would assume the OP isn't entitled to a grant (whether he is or not is his own business) but as far as I go, like I said, this is the first year I'm entitled to a grant. Before this year, as my entitlement was based on parental income (a comfortable albeit, for some, still modest 42k) I wasn't entitled to anything. But I'm taking the grant as it helps to pay for a new laptop, which I desperately needed, and some books. I could've easily got by without it but it's useful to have.

    Take what you can get as far as I'm concerned. Don't cheat the system but if you're entitled to it then take it. You'll still probably pay far more into the system than you'll take out.

    Look at many MPs and their expenses for goodness sake. They're actually cheating the system.

    (Original post by TheSownRose)
    plus I'll have some at the end so I can have my trip to Vienna.


    Couldn't resist :p:
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    (Original post by River85)
    Take what you can get as far as I'm concerned. Don't cheat the system but if you're entitled to it then take it. You'll still probably pay far more into the system than you'll take out.
    Always been my belief - the government are going to have a lot of time to screw you over, you may as well take them for everything they've got.

    And you choose Ultravox over Billey Joel?
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    I remember reading it somewhere that if you do decide to pay a large chunk of the loan you received (that you might had it in saving account), you will get 5% extra. I think this had something to do with being fairer to student who will be paying it off piece by piece as time goes on
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    (Original post by monkeyDace)
    I remember reading it somewhere that if you do decide to pay a large chunk of the loan you received (that you might had it in saving account), you will get 5% extra. I think this had something to do with being fairer to student who will be paying it off piece by piece as time goes on
    Only under the new system. OP is intending to go to uni in 2011.
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    (Original post by ArcaneAnna)
    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.
    There had to be someone, didn't there?
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    (Original post by River85)
    As others have said still take the loan. It's the only time in your life that you'll get what is, in effect, an interest free loan.

    Interest rates in ISAs aren't as generous as they were given the economic crisis. I know the interest I gained in the last tax year was abysmal (and I switched from Halifax to Alliance and Leicester because of its interest rate...). But, if you're wise, you'll still be able to get

    I was in a similar situation this year. I changed to part-time study and assumed I wasn't entitled to the loan and grant (only the part-time grant). I found out in early October that I was entitled to the loan and, now I'm 25 (so my parents income is no longer taken into account) I'm getting the 1k grant. I've still decided to take the loan, even though I was just about able to cope without it, as it provides that extra comfort in case of emergency. If I don't use it then it just stays in my ISA. But I admit that I have spent almost all of this first installment :p: Too much book buying thanks to poorly stocked library



    A student is not really getting into debt if they earn enough interest (through placing it in a savings account) then pay it off immediately once you graduate.



    It's not a grant. It's a loan. Even if it were a grant, the OP isn't "taking" a grant that can go to another person. If that person is eligible for the grant then they'll get it.



    If you mean taking the loan is socially irresponsible then I don't agree as it'll be paid back.

    But if you just mean taking the grant then I still don't really agree with this. One would assume the OP isn't entitled to a grant (whether he is or not is his own business) but as far as I go, like I said, this is the first year I'm entitled to a grant. Before this year, as my entitlement was based on parental income (a comfortable albeit, for some, still modest 42k) I wasn't entitled to anything. But I'm taking the grant as it helps to pay for a new laptop, which I desperately needed, and some books. I could've easily got by without it but it's useful to have.

    Take what you can get as far as I'm concerned. Don't cheat the system but if you're entitled to it then take it. You'll still probably pay far more into the system than you'll take out.

    Look at many MPs and their expenses for goodness sake. They're actually cheating the system.





    Couldn't resist :p:
    Thanks for that, very helpful

    Yeah I feel the same way, if I can get something without breaking laws or whatever then I don't see why I shouldn't... Even if people say it's bad or whatever (mostly people who aren't as fortunate) I think they would think differently if they were actually in the situation..
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    (Original post by my_username_was_taken)
    But if they pay and I don't over the 30 years pay it back then it'd be a waste of money wouldn 't it? That's what i'm thinking unless i'm misunderstanding this?

    And I don't need to pay them back as they're paying lol..

    How would it take away somebodys grant I don't understand?
    How is it a waste of money? It's your degree.

    My Dad pays for my fees and living costs. He doesn't want me paying back any debt at all. 30 years is a long time to have debt hanging over your head, yes you don't pay it back until you are earning over £21,000 but it's still there ain't it. I personally wouldn't like the idea of having all that to pay back.
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    (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
    are they going to get you a butler too?
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    (Original post by CookieDoughLove)
    How is it a waste of money? It's your degree.

    My Dad pays for my fees and living costs. He doesn't want me paying back any debt at all. 30 years is a long time to have debt hanging over your head, yes you don't pay it back until you are earning over £21,000 but it's still there ain't it. I personally wouldn't like the idea of having all that to pay back.
    Obviously I didn't mean the money for the degree would be a waste....I meant that if he pays for the fees up front and I wasn't earning enough to pay back the full amount it would be a waste of money as I would have already paid it if you understand?

    And obviously the £21,000 you could get via a loan you would invest wisely or put it in a bank account and therefore make money from it, NOT spend it! Why would you waste such an opportunity to get money for doing literally nothing?? It's not debt.. And just pay the minimum back each month and you might even have some of the money left that you haven't gained in interest!

    Wouldn't it be silly to throw away money like that?

    (Original post by Jacktri)
    are they going to get you a butler too?
    Yeah it's annoying the butler they're buying is only for 2 hours a day and not full time Guess that's only time for him to shop for me and make my meals and not even do much cleaning

    Only kidding of course lol...
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    (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
    Even if your parents do end up paying for it straight away, you may as well apply for the loan and stick it in the bank to gain some free interest on it! More monies!
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    (Original post by my_username_was_taken)

    Yeah it's annoying the butler they're buying is only for 2 hours a day and not full time Guess that's only time for him to shop for me and make my meals and not even do much cleaning

    Only kidding of course lol...
    aww shame you could have made the only kidding but slightly funnier i would have gone for

    "only kidding of course my butler will be full time do you think i'm some kind of peasant?"
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    (Original post by Jacktri)
    aww shame you could have made the only kidding but slightly funnier i would have gone for

    "only kidding of course my butler will be full time do you think i'm some kind of peasant?"
    Ok thanks for the useful advice

    Also, why did I get 4 neg reps for asking this, wtf??
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    (Original post by ArcaneAnna)
    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.

    Why not get your parents to pay if they're offering and then get the loan and invest it and make money? If you don't do that you're throwing money away!

    They aren't exactly meddling by paying something if they're offering and if they're paying for it you don't need to pay it back i'm assuming so it's hardly causing you freedom, just wasting your money surely?
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    I took a loan despite the fact my parents had saved money for me. This way I can put it in a savings account, build up enough for a flat deposit, and buy property a lot earlier than I would otherwise have been able to. It is the best form of 'debt'. If you're lucky enough to be in this situation, there are a lot of ways to make the most of it.
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    (Original post by caroline147)
    I took a loan despite the fact my parents had saved money for me. This way I can put it in a savings account, build up enough for a flat deposit, and buy property a lot earlier than I would otherwise have been able to. It is the best form of 'debt'. If you're lucky enough to be in this situation, there are a lot of ways to make the most of it.
    I understand investing it in a savings account, but what other ways are there please as I may do something else

    Let me know
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    (Original post by caroline147)
    I took a loan despite the fact my parents had saved money for me. This way I can put it in a savings account, build up enough for a flat deposit, and buy property a lot earlier than I would otherwise have been able to. It is the best form of 'debt'. If you're lucky enough to be in this situation, there are a lot of ways to make the most of it.
    Exactly this.

    Do you intend to need a deposit for a flat, or get a mortgage?

    It is FAR FAR FAR cheaper for you to use student debt for at least some of this rather than personal debt or mortgage debt. Student loans have no cost if you put the money in a savings account (you'll probably make a few hundred in fact), and will save you a LOT in the future if it means you don't need to take on so much of other types of debt later on.

    The only disadvantage is if you think you are going to waste the money.

    (Original post by my_username_was_taken)
    I understand investing it in a savings account, but what other ways are there please as I may do something else

    Let me know
    Investments basically. You can invest direct in shares if you feel capable, otherwise you can invest in a fund where you pay a fee and a broker invests for you. There is some risk to this (though not much risk in a safe type of fund) but you can expect much better returns.

    There is also more to savings accounts. You will get a much better rate if you lock away your money - e.g. such as a fixed 3-year bond, where you won't have access to the money whilst at uni (unless you pay a penalty) but will get a very good rate when you get the money back after the 3 years.
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    (Original post by CookieDoughLove)
    How is it a waste of money? It's your degree.

    My Dad pays for my fees and living costs. He doesn't want me paying back any debt at all. 30 years is a long time to have debt hanging over your head, yes you don't pay it back until you are earning over £21,000 but it's still there ain't it. I personally wouldn't like the idea of having all that to pay back.
    I kind of see your point, but presumably you plan to take out a mortgage? This is more expensive debt, has to be paid back no matter what you earn and lasts forever until paid back. Do think about whether it is better to turn some of that mortgage debt into student debt.
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    (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
    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.
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    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?
 
 
 
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