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    Hi there, Im starting uni in october and so im currently in the process of thinking about finance etc... My situation is that my parents could afford to pay my tuition fee themselves, and thus i dont need a government loan. However I was wondering if i take the loan and then pay it off in full the instant i leave uni will i have to pay any interest fees, or is interest only charged from when i leave university? Im thinking that if i can pay it off in full right after uni without interest then it would be worth taking the loan and putting it in a high-interest savings account while im at uni, then using it to pay the loan straight away after uni and keep the interest the bank has paid me for myself But this obviously wont work if interest is due on the loan while im at uni.
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    tuition fees get paid straight to the uni. You never get to see them so you would not be able to out them in a savings account.

    Why take the debt if you dont need it?
    Tbh if my rents said they would pay I would bite their hand off.
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    (Original post by anon2010)
    tuition fees get paid straight to the uni. You never get to see them so you would not be able to out them in a savings account.
    In that case we could just put the money we would have used to pay for uni into the savings account, and achieve exactly the same thing. My original question on whether interest is charged while im still at uni still stands.


    (Original post by anon2010)
    Why take the debt if you dont need it?
    Tbh if my rents said they would pay I would bite their hand off.
    The point is that if no interest is charged while im at uni, then the debt is essentially a completely free loan if i pay it back in full straight away, on top of which i stand to gain a fair amount in interest from a good savings account while im at uni - essentially free money. I fully intend to pay my parents back if they do end up paying for the degree, and if their doing so means i can start life after uni with a bit extra in the bank then i will gladly take that opportunity, even if that extra does just go towards paying my parents back a little sooner.
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    (Original post by shruikanshade)
    Hi there, Im starting uni in october and so im currently in the process of thinking about finance etc... My situation is that my parents could afford to pay my tuition fee themselves, and thus i dont need a government loan. However I was wondering if i take the loan and then pay it off in full the instant i leave uni will i have to pay any interest fees, or is interest only charged from when i leave university? Im thinking that if i can pay it off in full right after uni without interest then it would be worth taking the loan and putting it in a high-interest savings account while im at uni, then using it to pay the loan straight away after uni and keep the interest the bank has paid me for myself But this obviously wont work if interest is due on the loan while im at uni.
    I believe the government was thinking of imposing a penalty for early repayment to avoid people doing this (and also to stop people who go into banking avoiding interest!). I'm not sure if anything has been decided yet.

    Under the old system, interest/inflation accrued whilst you were still a student. Again, I'm not sure what the new system is but I would guess that they will at least apply an interest rate equal to inflation. So you would be taking a punt on inflation < savings rate over the time you are studying. Which I guess is reasonable, but only if there is no repayment charge.
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    (Original post by Mbob)
    I believe the government was thinking of imposing a penalty for early repayment to avoid people doing this (and also to stop people who go into banking avoiding interest!). I'm not sure if anything has been decided yet.

    Under the old system, interest/inflation accrued whilst you were still a student. Again, I'm not sure what the new system is but I would guess that they will at least apply an interest rate equal to inflation. So you would be taking a punt on inflation < savings rate over the time you are studying. Which I guess is reasonable, but only if there is no repayment charge.
    Ah thanks very much, I doubt itll work then - not sure its worth risking even greater debt for the minimal return of interest minus inflation.
 
 
 
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