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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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    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
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    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.
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    (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.
    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?
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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?
    You're not studying finance, I presume.
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    It doesn't really make financial sense as the student loan is one of the cheapest ways to borrow money at the moment, I believe.

    However, because of the interest on the loan, if you pay your fees up front you will end up paying less than if you pay it back over time and have to pay interest.

    In terms of never paying it all back, that does depend largely on what you do after.
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    I wish I was lucky enough to have parents who would pay my fees for me!
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    (Original post by Little Jules)
    It doesn't really make financial sense as the student loan is one of the cheapest ways to borrow money at the moment, I believe.

    However, because of the interest on the loan, if you pay your fees up front you will end up paying less than if you pay it back over time and have to pay interest.

    In terms of never paying it all back, that does depend largely on what you do after.
    Student Finance is the cheapest money you'll ever "get".
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    (Original post by ctarling)
    You're not studying finance, I presume.
    No i'm not, please explain.

    (Original post by Little Jules)
    It doesn't really make financial sense as the student loan is one of the cheapest ways to borrow money at the moment, I believe.

    However, because of the interest on the loan, if you pay your fees up front you will end up paying less than if you pay it back over time and have to pay interest.

    In terms of never paying it all back, that does depend largely on what you do after.
    Ah right, how much interest would I have to pay back?
    So basically I have to work out whether i'm likely to pay it all back versus the interest rate?
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    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.
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    (Original post by JamesyB)
    Student Finance is the cheapest money you'll ever "get".

    Yeah tbh this was what was making me consider getting the loan also as it's at a great interest rate I heard.
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    Personally, I would still get the loan. That way you won't need to worry at all financially. You won't need to get a part time job to cover things such as going out and thus you can focus more on your studies.
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    (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.
    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.
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    (Original post by my_username_was_taken)
    Yeah tbh this was what was making me consider getting the loan also as it's at a great interest rate I heard.
    just get the damn thing.

    who doesn't need money? seriously? save it for the first 9k of your house or something.

    and before all the people moan, the money is a LOAN it goes back into the economy
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    (Original post by RNBen)
    Personally, I would still get the loan. That way you won't need to worry at all financially. You won't need to get a part time job to cover things such as going out and thus you can focus more on your studies.
    Thanks, I was thinking this also
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    Just get your parents to pay it, mine are paying mine... keep away from all that nasty debt, plus it means you dont have to pay back any interest = its cheaper in the long run
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    (Original post by my_username_was_taken)
    Yeah tbh this was what was making me consider getting the loan also as it's at a great interest rate I heard.
    Yes it is, although I believe that it is going up under the new system.
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    (Original post by Little Jules)
    Yes it is, although I believe that it is going up under the new system.
    Yes, but it will be a set rate, rather than changing with inflation, thus each year graduates will be better off when repaying.
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    (Original post by nofish4u)
    Just get your parents to pay it, mine are paying mine... keep away from all that nasty debt, plus it means you dont have to pay back any interest = its cheaper in the long run
    Thanks for the advice It's good isn't it, I really appreciate being so fortunate ANd going to show how fortunate I am by gaining a 1st

    (Original post by Little Jules)
    Yes it is, although I believe that it is going up under the new system.
    Ah right, any idea about by how much?> I thought conservatives were trying to discourage people paying the fees up front lol?
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    (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.
    Get the loan, it is the cheapest money you will ever get and you can invest it. Your parents can support you while you do your degree.
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    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..
 
 
 
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