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    Hi all,

    What are the benefits of taking a student loan for undergraduate university study? I think that I have enough personal savings and financial aid from my parents to be able to just scrape by.

    So, I was wondering whether it makes financial sense to take out a student loan, and pay it off over a period of time, or instead, have no loan, and fund the whole degree through other means?

    I am a complete novice in terms of the interest rates applied to student loans and the repayment terms and conditions. I know that there is some condition about how you don't need to pay it back until you are earning above a certain threshold income...?

    Thank you!
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    (Original post by londoncricket)
    Hi all,

    What are the benefits of taking a student loan for undergraduate university study? I think that I have enough personal savings and financial aid from my parents to be able to just scrape by.

    So, I was wondering whether it makes financial sense to take out a student loan, and pay it off over a period of time, or instead, have no loan, and fund the whole degree through other means?

    I am a complete novice in terms of the interest rates applied to student loans and the repayment terms and conditions. I know that there is some condition about how you don't need to pay it back until you are earning above a certain threshold income...?

    Thank you!
    Under current repayment rules, you pay 9% of anything you earn over £21,000 as deductions from your wages. Below this earnings threshold, you repay nothing. Any outstanding loan will be wpied out thirty years after you graduate.

    With the current terms & conditions, a Student Finance loan has some of the most benign repayment terms that you'll find. Depends how much large a Maintenance Loan you'll qualify for, but if a lump sum is likely to be useful after uni e.g. for buying a property, a car, funding a business startup etc., then I'd take the student loan.
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    It's there if you need it. It does mean that if you have an unexpected cost whilst studying, you've got some money.
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    Take the loan and invest your savings. You can always repay once you leabe uni. Your savings are more useful as a deposit for a flat,\house. You could buy property and sell it: making a nice profit or avoid costly renting by buying your own.
    In short, taking the loan is the best option.
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    Thanks everyone for your advice!
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    I would take the loan because it's the best loan you can ever get. It's also very easy to get. As long as the government won't change the conditions. It's not 'free money' but it is a very good loan. That's how you should see it. The measly 3% you may get on putting your money away is nothing really, putting money into your savings is actually MORE expensive than paying back the student loan.
 
 
 
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