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Is it worth applying for a manitenance loan as well as a grant? Watch

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    So i'm applying for student finance for my 3rd and final year. I have applied for the standard 9k tuition fee and a maintenance grant of 3.8k. Im not sure if i should apply for a maintenance loan though.

    I'm working flat out during summer so that i can have some money for myself. I'll be living at home so i'll save a lot of money and the only expenses are just books, food, petrol for my car, insurance e.t.c

    When it comes to repaying this back, will it mess up my credit score and will i be paying it off for a long time or does it just come out of your payslip once you're earning over £21k??

    Any help and advice is appreciated.
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    (Original post by Silver Arrow)
    So i'm applying for student finance for my 3rd and final year. I have applied for the standard 9k tuition fee and a maintenance grant of 3.8k. Im not sure if i should apply for a maintenance loan though.

    I'm working flat out during summer so that i can have some money for myself. I'll be living at home so i'll save a lot of money and the only expenses are just books, food, petrol for my car, insurance e.t.c

    When it comes to repaying this back, will it mess up my credit score and will i be paying it off for a long time or does it just come out of your payslip once you're earning over £21k??

    Any help and advice is appreciated.
    Student finance does not affect your credit score, it doesn't show up at all.
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    (Original post by subject1)
    Student finance does not affect your credit score, it doesn't show up at all.
    So i can go ahead and apply for the maximum maintenance loan? There was something there about having o pay it early and/or that it adjusts itself.
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    It just comes out your payslip. Take it, it's the best loan you'll ever get.
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    (Original post by Dusky Mauve)
    It just comes out your payslip. Take it, it's the best loan you'll ever get.
    not if you plan to be ambitious and have a salary that will mean you will be able to fully pay your loan.
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    (Original post by subject1)
    not if you plan to be ambitious and have a salary that will mean you will be able to fully pay your loan.
    Even then you're paying it back at a much slower rate than you would any other loan. You'd hardly even notice the money was gone if you're earning enough to pay it all back.
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    (Original post by Dusky Mauve)
    Even then you're paying it back at a much slower rate than you would any other loan. You'd hardly even notice the money was gone if you're earning enough to pay it all back.
    As the maintenance loan probably isn't a necessity for the OP (hence why the OP is considering it), is it really worth getting the loan? The loan doesn't exactly have a low interest rate.

    If a student has £39000 in debt and a constant salary of £27000 (which is an unlikely scenario as it should increase overtime), and at an interest rate of 2%, the student would still repay it after 28 years.
    - So, you don't exactly have a lot to have to pay it all back.
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    (Original post by subject1)
    As the maintenance loan probably isn't a necessity for the OP (hence why the OP is considering it), is it really worth getting the loan? The loan doesn't exactly have a low interest rate.

    If a student has £39000 in debt and a constant salary of £27000 (which is an unlikely scenario as it should increase overtime), and at an interest rate of 2%, the student would still repay it after 28 years.
    - So, you don't exactly have a lot to have to pay it all back.
    So is it worth applying for the loan then? I'm confused now.
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    (Original post by Silver Arrow)
    So is it worth applying for the loan then? I'm confused now.
    You may never know when you may need it.
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    (Original post by Silver Arrow)
    So is it worth applying for the loan then? I'm confused now.
    Unfortunately we do not know your personal financial circumstances and we're even less able to predict your future than you are.

    You just have to make the decision for yourself.*
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    (Original post by Klix88)
    Unfortunately we do not know your personal financial circumstances and we're even less able to predict your future than you are.

    You just have to make the decision for yourself.*
    That's not useful. Will i only pay it back once i start earning over a certain amount and also will it affect my future life in terms of credit ratings?
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    (Original post by Silver Arrow)
    That's not useful. Will i only pay it back once i start earning over a certain amount and also will it affect my future life in terms of credit ratings?
    You pay it back once you start earning over £21k per year. It's 9% of your earnings. It won't affect your credit rating.
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    (Original post by Silver Arrow)
    That's not useful. Will i only pay it back once i start earning over a certain amount and also will it affect my future life in terms of credit ratings?
    £21000, and as I said, it does not affect your credit rating, and that's because it isn't really a loan provided by financial institutions, but rather, by the government.
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    (Original post by Tiger Rag)
    You pay it back once you start earning over £21k per year. It's 9% of your earnings. It won't affect your credit rating.
    Is it over £21k or £17k. So i might as well apply for the maximum loan i can get right?
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    (Original post by Silver Arrow)
    Is it over £21k or £17k. So i might as well apply for the maximum loan i can get right?
    £21k.£17k (ish) is the old per-September 2012 system.
 
 
 
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