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How much maintenance loan should I apply for?

I'm applying for a maintenance loan but there are two options: a maintenance loan at around £5000, and a higher maintenance which adds an extra £2000 onto this, giving you a total maintenance loan of around £7000. I've also applied for a grant as I come from a low-income household.

I'm really hesitant about applying for all this money! The interest I will have to pay, I dread to think of! So please, if you know anything about loans or money could you advise me! I was considering putting some of the money in an ISA account but not sure if that's worth it. SOMEONE HELP ME OUT! I'm 17 and know nothing about this sort of thing.

Reply 1

Paralove

I've applied for all I can get. Honestly, you're already taking out a loan for tuition fees, anything on top isn't going to increase how the rate at which you pay it back. For a lot of people they will never pay it back - it's written off after thirty years, and you only pay back 9% of everything you earn above £21K eg if you earn £22K/year you pay back £90/year!

Best loan you'll ever get and doesn't affect things like credit scores or ability to get a mortgage in future.

Reply 2

Joanna-Marie :)

Personally, I'd apply for as much as you can possibly get. It's the cheapest loan you'll ever have and if you don't use it put it towards something useful/enjoyable in the future - House? Car? Holiday?