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Saved all of my grants and loan... watch

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    So basically, at the start of the year I was given a maintenance loan and grant allowance. However, due to me receiving some help in paying for my rent off the council for being a care leaver, I haven't spent any of the loan or grant (I have always been like this and feel bad for spending money so I save every last penny I can). Therefore, any money I have spent of my student loan I always put back in as soon as possible, leaving me with 8 grand in the bank in my first year. I was wondering instead of applying for student finance next year is it wise to live off of my savings I acquired this year, which equals less debt? I feel as though it's unfair to borrow more money than I need, I'm doing a social work degree at the moment. Shall I not apply for any help off student finance next year at all, or maybe a small grand loan incase I ever get stuck or something happens? I have posted on another thread about this and got nothing but stick off people, I don't go out spending all my money like students are known for, I'm a really big saver so no negative comments please!!
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    (Original post by Sarahlay)
    So basically, at the start of the year I was given a maintenance loan and grant allowance. However, due to me receiving some help in paying for my rent off the council for being a care leaver, I haven't spent any of the loan or grant (I have always been like this and feel bad for spending money so I save every last penny I can). Therefore, any money I have spent of my student loan I always put back in as soon as possible, leaving me with 8 grand in the bank in my first year. I was wondering instead of applying for student finance next year is it wise to live off of my savings I acquired this year, which equals less debt? I feel as though it's unfair to borrow more money than I need, I'm doing a social work degree at the moment. Shall I not apply for any help off student finance next year at all, or maybe a small grand loan incase I ever get stuck or something happens? I have posted on another thread about this and got nothing but stick off people, I don't go out spending all my money like students are known for, I'm a really big saver so no negative comments please!!
    Id recommend getting a student loan this year
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    (Original post by Ayaz789)
    Id recommend getting a student loan this year
    But it's useless applying for more because in the long run I'm sitting on this money but the interest the student loans will gain means it's pointless because I will be owing a lot more??
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    (Original post by Sarahlay)
    But it's useless applying for more because in the long run I'm sitting on this money but the interest the student loans will gain means it's pointless because I will be owing a lot more??
    Are you in your second year?
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    (Original post by Ayaz789)
    Are you in your second year?
    First year
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    (Original post by Sarahlay)
    First year
    Yeahh so you should get it ! Only because if you have any problems you have something to rely on, plus the interest isnt much + & dont apply for student loan for the 3rd year
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    Definitely take the loan and put all your spare money in a high interest account. The interest should be above the current student loan interest rate (3.9%) to be worthwhile. TSB have a 5% interest account and First Direct do a 6% one so go looking, they are out there. Just watch for caps (e.g. TSB only pay 5% up to £2000) and make sure you can get the whole loan placed in high interest accounts if possible.

    In all honesty, whether you can do that or not, I'd take it and save it anyway. You won't pay off the loan until/unless you earn over 21k, and it's wiped after 30 years which may sound like a long time, but I'm repaying about fifty quid a month and it's likely I'll never pay off what I owe before it's wiped. Essentially it's a very cheap loan (and if you work your savings right, you may even earn a bit), I'd take advantage of it if I were you.
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    (Original post by PangXie)
    Definitely take the loan and put all your spare money in a high interest account. The interest should be above the current student loan interest rate (3.9%) to be worthwhile. TSB have a 5% interest account and First Direct do a 6% one so go looking, they are out there. Just watch for caps (e.g. TSB only pay 5% up to £2000) and make sure you can get the whole loan placed in high interest accounts if possible.

    In all honesty, whether you can do that or not, I'd take it and save it anyway. You won't pay off the loan until/unless you earn over 21k, and it's wiped after 30 years which may sound like a long time, but I'm repaying about fifty quid a month and it's likely I'll never pay off what I owe before it's wiped. Essentially it's a very cheap loan (and if you work your savings right, you may even earn a bit), I'd take advantage of it if I were you.
    I've also been told by a lot of people that I have made a big finance mistake by not spending it because you can get in trouble with student finance. However, that doesn't make sense because it's basically saying I need to spend it all... Thank you for the advice, I'm going to a bank today then to speak to an advisor on what's best to do. I was thinking an ISA but a few people have told me it wouldn't be safe. Also, if I fail my course which I'm not expecting to do, are student finance allowed to make you start paying it all back without earning 21000 grand a year ?? 50 pound a month isn't bad at all if you are earning a good wage, thank you for the information.
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    Student loans are pretty much the best ones you'll get in your entire life don't throw that away just because you have a decent amount right now. Also remember that you get grants which is completely free money from the Government
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    (Original post by hamza97ahmed)
    Student loans are pretty much the best ones you'll get in your entire life don't throw that away just because you have a decent amount right now. Also remember that you get grants which is completely free money from the Government
    I have received 3500 in maintenance grants and 5000 on maintenance loan. I was just worried incase I actually failed my degree and have all of this money in the bank that I will have to essentially return, because if I fail the grants are repayable leaving me with no money. I am going to speak to a student finance advisor to see what they suggest. Thanks for the advice
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    (Original post by Sarahlay)
    I have received 3500 in maintenance grants and 5000 on maintenance loan. I was just worried incase I actually failed my degree and have all of this money in the bank that I will have to essentially return, because if I fail the grants are repayable leaving me with no money. I am going to speak to a student finance advisor to see what they suggest. Thanks for the advice
    Thats true but you shouldnt really be thinking about failing unless you've already gotten some feedback from assignments.
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    (Original post by hamza97ahmed)
    Thats true but you shouldnt really be thinking about failing unless you've already gotten some feedback from assignments.
    I have passed everything this year including my exams and essays, I just have 2 upcoming exams that I need to pass. But second year is a lot harder as in the first year you only need 40% to pass, so it's in the back of my mind what if I don't pass next years work and another 9000 I owe plus the extra loans and grants. Just need to do a lot of thinking and speak to the lecturers I think.
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    (Original post by Sarahlay)
    I've also been told by a lot of people that I have made a big finance mistake by not spending it because you can get in trouble with student finance. However, that doesn't make sense because it's basically saying I need to spend it all... Thank you for the advice, I'm going to a bank today then to speak to an advisor on what's best to do. I was thinking an ISA but a few people have told me it wouldn't be safe. Also, if I fail my course which I'm not expecting to do, are student finance allowed to make you start paying it all back without earning 21000 grand a year ?? 50 pound a month isn't bad at all if you are earning a good wage, thank you for the information.
    The advisor sounds like a great idea - ISAs are generally not the best option now as current accounts tend to offer higher interest, to attract customers. It used to be that an ISA was still a better idea even with a slightly lower interest rate, as you didn't pay tax on interest earned, but that's recently changed so you won't pay tax on interest from savings accounts either. So just go for whatever gets you the best interest. Santander's 123 account is worth a look as you have quite a hefty chunk saved and they'll give you 3% up to £30000, plus cashback on your household bills. Not bad at all.

    You should be fine with student finance, if they confirm you're entitled to the money it's none of their business what you do with it. Just be careful about declaring your savings every time you apply and then they can't complain.
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    (Original post by PangXie)
    The advisor sounds like a great idea - ISAs are generally not the best option now as current accounts tend to offer higher interest, to attract customers. It used to be that an ISA was still a better idea even with a slightly lower interest rate, as you didn't pay tax on interest earned, but that's recently changed so you won't pay tax on interest from savings accounts either. So just go for whatever gets you the best interest. Santander's 123 account is worth a look as you have quite a hefty chunk saved and they'll give you 3% up to £30000, plus cashback on your household bills. Not bad at all.

    You should be fine with student finance, if they confirm you're entitled to the money it's none of their business what you do with it. Just be careful about declaring your savings every time you apply and then they can't complain.
    Okay thank you you've been so helpful and helped put my mind at ease because I was so worried and confused haha, didn't think I'd have these stresses at 19 years old 😂👎🏻
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    (Original post by PangXie)
    The advisor sounds like a great idea - ISAs are generally not the best option now as current accounts tend to offer higher interest, to attract customers. It used to be that an ISA was still a better idea even with a slightly lower interest rate, as you didn't pay tax on interest earned, but that's recently changed so you won't pay tax on interest from savings accounts either.
    That isn't quite correct:
    If you don't earn enough to be taxed, you won't pay tax on your savings. For those who do pay tax, you do get an allowance of £1000 from April 2016.
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    (Original post by Tiger Rag)
    That isn't quite correct:
    If you don't earn enough to be taxed, you won't pay tax on your savings. For those who do pay tax, you do get an allowance of £1000 from April 2016.
    Ok yes, but I figured no one here is earning and saving enough to be worrying about that
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    Get the loan.

    Even if you just chuck the 8 grand in a high interest account you're better off having it than not.
    Personally, I'd rather do some deals rather than chuck it in an account...
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    (Original post by JC.)
    Get the loan.

    Even if you just chuck the 8 grand in a high interest account you're better off having it than not.
    Personally, I'd rather do some deals rather than chuck it in an account...
    (Original post by JC.)
    Get the loan.

    Even if you just chuck the 8 grand in a high interest account you're better off having it than not.
    Personally, I'd rather do some deals rather than chuck it in an account...
    I don't no what you mean by some deals haha, I've only just turned 19 last month and my mother has never really been a high earner plus don't have much contact with her so I'm pretty much left on my own with all this money that I have no idea what to do with. So high interest account seems more straight forward and easier to understand, everyone on this post has basically explained it and it would be a good idea to take out a loan next year. I'm just not going to take a loan out the third year as I am also going to get a part time job so won't find it to hard to live off what I'm earning. Thanks for the reply 😁
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    (Original post by Sarahlay)
    I don't no what you mean by some deals haha, I've only just turned 19 last month and my mother has never really been a high earner plus don't have much contact with her so I'm pretty much left on my own with all this money that I have no idea what to do with. So high interest account seems more straight forward and easier to understand, everyone on this post has basically explained it and it would be a good idea to take out a loan next year. I'm just not going to take a loan out the third year as I am also going to get a part time job so won't find it to hard to live off what I'm earning. Thanks for the reply 😁
    I mean buy something and sell it for a profit.
    Could be anything. I bought a box of vintage 50's clockwork trains at an auction a couple of years back for 50 quid. Felt like I might have overpaid at the time...
    Must have turned that into £600.
    Similarly, I bought a chesterfield wing back chair for our study... decided I didn't like the colour and sold it... made £100 on that.
    Bought a garden trailer because I didn't want to put junk in my Daimler, did what I needed to do with it and sold it for £150 more than I bought it for...

    There's money in anything so long as you buy wise.

    With regard to a loan, get it EVERY year. You'll never even pay it back unless you earn over a certain amount. Plus it doesn't count against you when you walk into a bank to get, for example, a mortgage.
    3 years loan saved up would be a cracking deposit on a house, for example?
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    Student Loans pretty much are the best loans ever because in most cases you get "free money", i.e. there will be some amount you never pay back.
 
 
 
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