Should I take out a student loan, given my situation? Watch

Anonymous #1
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I'm female, not far off 30, single and am about to start a degree. It is funded by the NHS and I'l get a bursary but I'm wondering if it's worth getting a student maintainance loan out too. I will only be borrowing £4000 maximum if I do as I have a 0 hour contract job as well. The thing is I'm thinking of the best way to save for a mortgage deposit to put down on a house in 3 years time. I'm thinking that if I get the student loan out then I will be able to save the money I recieve from my job however if I don't get the loan out I will be using the shift money to help get me by.

Basically what I'm asking is is it worth getting out the student loan and being stuck with paying £30+ a month for about 6/7 years for the sake of having some money saved at the end?
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ByEeek
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If it is any consolation, I am thinking of doing the same thing. I have applied for the maximum loans available. For the year I am teaching they will be a just-in-case fund but once complete and in work, I plan to either spend the money on our house (windows, kitchen, roof etc) or pay them back. Not decided yet but definitely going to see that money in my account one way or another.

I don't imagine I will ever pay them back so it is just a graduate tax to bear for the rest of my working life.
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Anonymous #1
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(Original post by ByEeek)
If it is any consolation, I am thinking of doing the same thing. I have applied for the maximum loans available. For the year I am teaching they will be a just-in-case fund but once complete and in work, I plan to either spend the money on our house (windows, kitchen, roof etc) or pay them back. Not decided yet but definitely going to see that money in my account one way or another.

I don't imagine I will ever pay them back so it is just a graduate tax to bear for the rest of my working life.
See I think if you are entitled to a lot of loan, over a certain amount, you might as well take out the maximum because as you say you will still be paying back for the same amount of time (30 years) as you would if you took out less, repayments will be the same amount too. But with only £3500 - £4000 that I'm thinking of taking out I'm wondering if it's worth it.

Does anyone know what happens with repayments if you have savings though? If I have savings at the end of my degree will they make me use the savings to pay it back anyway lol?
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Basiil17
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They don't force you- when your income is £21k plus then you pay back

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ByEeek
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(Original post by Anonymous)
Does anyone know what happens with repayments if you have savings though? If I have savings at the end of my degree will they make me use the savings to pay it back anyway lol?
Repayments are linked to earnings, not wealth. As already stated you pay 9% of earnings over £21k. So if you are likely to stay in the sub £35k salary range it isn't too prohibitive. It is when you get to £40k+ that monthly repayments start to be a rather significant.

I would definitely say that investing it in a house to buy was a good use of it.
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