Should I get a uni maintenance loan just to put it in a savings account?

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HELPPP

Ok so for my firm choice i would not have to move away which means i wouldnt need maintenance loan but my insurance choice would require me to move away, that would mean i would need maintenance loan plus extra main.. loan. Does that mean i have to apply for all 3? Even though i may not need it if i end up with my firm? And would that also mean for the first year i have to pay it back?

Reply 21

fxlloutboyy

You only apply for student finance once and you change the university if you need to. Will you still need the maintenance loan to travel to the closer university, pay rent to parents etc?

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No dont think so

So basically you need to apply for it if you end up going to your insurance and if you don't need it you can tell SFE before your first payment

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Reply 24

Chicken.M.

It's always good to have for emergencies imo.

It's basically a safety net so you don't starve to death for some unforseen reason. I wasted a bunch of uni at money because I had nasty housemates and didn't want to live with them anymore. So had to move out and it cost alot.

(edited 7 years ago)

Ok thank you :smile:

Original post by Doonesbury

SFE interest rate is increasing to 6.1% in September.

https://www.theguardian.com/money/2017/apr/11/student-loan-interest-rate-rise-uk-inflation-brexit

"But from September this [SFE interest rate] will rise to 6.1%, made up of the March 2017 [RPI] figure of 3.1%, plus 3%."

Hi,

I am currently considering taking the same action, I would be eligible for £7040 maintenance loan. I am living at home and also receive a £4000 bursary from my university. Unfortunately I do have to pay my own tuition this year and possibly the next. My thought process is to save the maintenance loan entirely for once I graduate to put it towards a deposit for a house. Thoughts?

Welcome all opinions on the matter.

Reply 27

Doones

Original post by AJA1994

How are you funding the tuition fee costs? Is it from your savings?

Reply 28

AJA1994

Original post by Doonesbury

How are you funding the tuition fee costs? Is it from your savings?

First year I am using the bursary and my own savings, if I must pay second year then bursary and my mum will help.

Reply 29

Doones

Original post by AJA1994

I'll be using the bursary and my own savings, if I have to pay the second then also the bursary and help from my mum.

It's swings and roundabouts then isn't it. In other words, yes you can do what you suggest. :smile:

Reply 30

james813

Original post by bex.anne

Hi guys,

I never really thought about this before I read about it on an old thread.

I will be taking out the main student loan for the university fees (£9250), but I wont need one for living costs because of savings, bursaries, scholarships, family ect.

So I was just wondering, should I still take out the maintenance loan, its around £8,000 a year. I don't know much about ISA's but on other threads on here that i have read, people are saying it's wise to still take out a maintenance loan even if i dont need it and put it in an ISA account because you'll basically gain money from the interest rates they offer (but will this be more than the interest that the loan will accummulate, because as soon as i take out the maintenance loan the interest will start building up). Also, I might end up needing extra money whilst at uni so i guess its safe to have it there as a back up. I don't really want to end up in a lot of debt after uni and I am aware the student loan is low interest and most people dont end up paying it back, but i most probably will i think (studying medicine) so I want it to be as low as possible.

So what do you guys think, take out the maintenance loan anyways and put it in a savings account? Or not take it out since I wont need it and its extra debt for no reason?

If you are saving for a deposit on a house, do it. Otherwise you will end up paying everything back maybe with a small profit.

Reply 31

AJA1994

Original post by Doonesbury

It's swings and roundabouts then isn't it. In other words, yes you can do what you suggest. :smile:

Thank you for the advice

Reply 32

AJA1994

Original post by james813

If you are saving for a deposit on a house, do it. Otherwise you will end up paying everything back maybe with a small profit.

I do plan to use it to put towards a house so I think I'm going to take it

Reply 33

bob0079

Firstly, it depends on your circumstances. It is a cheap form of debt, but someone else said that it was the cheapest loan you will ever have - its not. It is certainly possible to get one with a lower interest rate.

But, a SL has advantages. It is not on a credit report, and the repayment is so low per month so if you were looking to buy a house you could add it to the deposit. This would reduce your borrowing and so either get you to be able to afford the house you want OR reduce the Loan to Value so you can qualify for a better mortgage deal, saving you money. And that lower interest rate would be a saving on the largest loan your likely to make, so a slightly higher rate on a small portion makes a massive saving on the larger amount at a lower interest rate.

It may well be cheaper than a used car loan, and would certainly be cheaper than most credit card debt.

If you can take it out and use it to save money as an alternative to a loan product (make monthly payments back to the SF account, just like a loan, even add a bit of interest) then I would say it is worth it.

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