Not having a student loan

Basically my parents want to pay for my university tuition fees, rather than me getting a tuition fee loan, but I don't know how this works in terms of actually paying the university? Because from what I've looked at the tuition fee loan is paid directly to the university as opposed to being paid to you and then you paying the university, so I'm not sure how this works if you're not getting the loan?

Someone I spoke to said this would mean you ended up paying international fees, is this really the case? (if it is then obviously I would just take the loan and then pay it back at the end of my course as usual) I'm finding it quite hard to find information for people who aren't planning on taking out a loan.

Any help would be much appreciated :smile:

Reply 1

nikki_louise

13

it just means you will have to pay the university directly. they will probs get in contact with you and explain how you can pay them, i no here at southampton you have to go to the student services building and sort it out through means of a cheque or through a direct debit.
i really dont think you will have to pay international fees that seems a strange thing to say.

the best advice i can give you is to actually email Oxford and ask them as to their procedures in regards to this.

Reply 2

Rob da Mop

15

I know that my friend here somehow managed to accidentally ask for a couple of hundred less than the full tuition fee loan and he's just paying the extra bits of money by cheque. No increased fees.

Reply 3

GodspeedGehenna

3

You pay normal fees, with some unis offering a small discount for paying in one lump sum.

Personally, I'd ask them to cover your living expenses, use tuition loans to cover your fees, and then stash the maintenance loan in a bank for future mortgage deposit. Cheapest loan you'll ever get.

Reply 4

username225218

8

My tuition fees are paid by my parents. I don't pay International Fees, that is ridiculous. Now, I am not entirely sure what happens as my Dad deals with it, but I am 99% sure it goes out in a Direct Debit, as he gets an email a few days before telling him that it will be taken. I am sure that if you do not take the loan out, you will receive information regarding how to sort it out at the start of your course.

Reply 5

DarkWhite

17

Original post by ChopinNocturne

Basically my parents want to pay for my university tuition fees, rather than me getting a tuition fee loan, but I don't know how this works in terms of actually paying the university? Because from what I've looked at the tuition fee loan is paid directly to the university as opposed to being paid to you and then you paying the university, so I'm not sure how this works if you're not getting the loan?

Someone I spoke to said this would mean you ended up paying international fees, is this really the case? (if it is then obviously I would just take the loan and then pay it back at the end of my course as usual) I'm finding it quite hard to find information for people who aren't planning on taking out a loan.

Any help would be much appreciated :smile:

It varies between institutions, but typically, you'll get invoiced by the university once per semester (twice a year), and then you'll have chance to pay it in cash, post, cheque etc.

You won't pay international fees! :smile:

Reply 6

Quady

20

Original post by GodspeedGehenna

You pay normal fees, with some unis offering a small discount for paying in one lump sum.

Personally, I'd ask them to cover your living expenses, use tuition loans to cover your fees, and then stash the maintenance loan in a bank for future mortgage deposit. Cheapest loan you'll ever get.

Apart from a credit card or student overdraft obviously.

Reply 7

GodspeedGehenna

3

Original post by Quady

Apart from a credit card or student overdraft obviously.

Student overdraft is obviously very limited. And a credit card that is cheaper than a student loan? Really?

Reply 8

Quady

20

Original post by GodspeedGehenna

And a credit card that is cheaper than a student loan? Really?

Yeah.

A student loan has an interest rate of 1.5%. A credit card is interest free. Even pays you cashback of 1.25% if you're lucky.

Reply 9

GodspeedGehenna

3

Original post by Quady

Yeah.

A student loan has an interest rate of 1.5%. A credit card is interest free. Even pays you cashback of 1.25% if you're lucky.

Interest free within limited periods, no? It's hardly a long-term option and wouldn't be suitable for things like contributing towards a deposit on a mortgage.

Reply 10

Alison1992

13

Original post by ChopinNocturne

Basically my parents want to pay for my university tuition fees, rather than me getting a tuition fee loan, but I don't know how this works in terms of actually paying the university? Because from what I've looked at the tuition fee loan is paid directly to the university as opposed to being paid to you and then you paying the university, so I'm not sure how this works if you're not getting the loan?

Someone I spoke to said this would mean you ended up paying international fees, is this really the case? (if it is then obviously I would just take the loan and then pay it back at the end of my course as usual) I'm finding it quite hard to find information for people who aren't planning on taking out a loan.

Any help would be much appreciated :smile:

my friend did this, he just turned up at enrollment with a cheque for £3750 or whatever it was and gave it to the bursar, job done :smile:

Reply 11

Davidosh

14

Them paying your fees is a little inefficent they would be much better you can

a) Get them to put the tution fees in a bank with high interest, then take out the loan since the bank interest will always be higher than the loan

b) Paying your maintenance which is what you get a smaller loan for and you could do with the extra cash

Reply 12

Swindan

8

Original post by Davidosh

Them paying your fees is a little inefficent they would be much better you can

a) Get them to put the tution fees in a bank with high interest, then take out the loan since the bank interest will always be higher than the loan

b) Paying your maintenance which is what you get a smaller loan for and you could do with the extra cash

I'm pretty sure the maintenance loan is always higher than the tuition fee loan (until next year)

I agree with the first point though.

Reply 13

alexx :)

Original post by Davidosh

Them paying your fees is a little inefficent they would be much better you can

a) Get them to put the tution fees in a bank with high interest, then take out the loan since the bank interest will always be higher than the loan

b) Paying your maintenance which is what you get a smaller loan for and you could do with the extra cash

I'm in the same situation. My parents are for some reason seriously anti-loan and do not want me to take out any loans at all.

Does it really make more sense to take the loan out anyway and put it in the bank? I'm a bit confused at to how it would as if you have to pay interest back with the loan, is the interest that will be made on the money my parents put in the bank be greater?

Reply 14

GodspeedGehenna

3

Original post by alexx :)

I'm in the same situation. My parents are for some reason seriously anti-loan and do not want me to take out any loans at all.

Does it really make more sense to take the loan out anyway and put it in the bank? I'm a bit confused at to how it would as if you have to pay interest back with the loan, is the interest that will be made on the money my parents put in the bank be greater?

It makes sense not to take it out. Put it in a savings account and you will cover the interest and possibly turn a profit. It's the cheapest loan you will ever get. It can't bankrupt you and your repayments are halted if you're earning below a threshold. They can't foreclose on you and it's wiped after 30 (?) years.

Take it and run. Use it as part of a deposit on a house.

Reply 15

Swindan

8

Original post by alexx :)

I'm in the same situation. My parents are for some reason seriously anti-loan and do not want me to take out any loans at all.

Does it really make more sense to take the loan out anyway and put it in the bank? I'm a bit confused at to how it would as if you have to pay interest back with the loan, is the interest that will be made on the money my parents put in the bank be greater?

I think the interest on student loans is currently around 1.5%, whereas you can get interest of over 3% in a cash ISA. Seeing as you wouldn't need the money until after Uni, you could put it away in a 3, 4, or possibly 5 year ISA, which would have even higher interests. You can currently get a 5 year fixed rate cash ISA with 5% interest.

Reply 16

Davidosh

14

Original post by alexx :)

I'm in the same situation. My parents are for some reason seriously anti-loan and do not want me to take out any loans at all.

Does it really make more sense to take the loan out anyway and put it in the bank? I'm a bit confused at to how it would as if you have to pay interest back with the loan, is the interest that will be made on the money my parents put in the bank be greater?

Yes as the loan given to you the interest you pay is well below market rate, don't quote me but I think the student loan interest is roughly 1.5% and in a NI bank account you can earn interest of 5%, some ISAs can even pay more then that.

If you were to do this the only way it can come back on you in the future is it might damage your credit rating a bit, however I think banks will make allowances for that if they can see it is student loan debt.

Some people's attitude towards student debt is absolutely bizarre and not particularly well thought out.

(edited 12 years ago)

Reply 17

Quady

20

Original post by Swindan

You can currently get a 5 year fixed rate cash ISA with 5% interest.

Which would be pretty rubbish if within the five years the student loan interest rate goes back up to 4.8% or higher and one year fixed rates are 6.5% again.