The Student Room Group

Inovative use of a student maintenance loan

I am currently working part time with an employer, studying my last year at A level.

I am hoping to study at my local university after this, as I have already been offered a placement.

I don't come from the richest background, and therefore will be eligible for a high percentage, if not all of the student loan.

My employer has offered to give me extra hours when I start university, and I have calculated with this: my part-time work will be sufficient enough for me to cover my living costs, as I will be communing to uni from home.

Thus, it gave me an idea...

Would I be able to save/invest my student loan throughout the full 3 years I study, with the intention of growing my capital in order to form a deposit on a mortgage.

Not sure if this is something that you can do, due to mortgage policies?

I heard that the student loan doesn't affect your credit history, but im not sure if you're able to use it to secure another loan?

However, it will save me years and years of staying at home, working to save up for a deposit to buy my own home. Rather, it will very easy.

Any replies would be great? Really have no clue?
(edited 6 years ago)
Having a student loan debt doesn't stpo you getting a mortgage assuming you can afford both repayments. But once you have the money you can spend it how you like (or not)... you could easily spend your loan on living and save your wages, it's all the same.
Mortgage policies do not look at the source of your money in that sense. You can use your student loan however you wish. Buy a used Porsche Macan when you graduate if you want.

Yes you can invest it. But then look at the risks. Losing most of your student loans on bad investments then having to pay back the money is not a lovely experience.
Original post by Conor_Beaumont

Would I be able to save/invest my student loan throughout the full 3 years I study, with the intention of growing my capital in order to form a deposit on a mortgage.


Once the money has been paid into your account, you can do what you like with it. I used mine to buy new double glazing, a living room carpet and a new kitchen. I won't pay it back because I won't ever earn enough as a humble teacher to make a significant dent and at 6% interest it will grow in size faster than my earnings will repay it. So I have resigned myself to paying an additional 9% tax for the rest of my working days.

I just hope the government don't change the Ts and Cs.
Reply 4
Original post by Conor_Beaumont
I am currently working part time with an employer, studying my last year at A level.

I am hoping to study at my local university after this, as I have already been offered a placement.

I don't come from the richest background, and therefore will be eligible for a high percentage, if not all of the student loan.

My employer has offered to give me extra hours when I start university, and I have calculated with this: my part-time work will be sufficient enough for me to cover my living costs, as I will be communing to uni from home.

Thus, it gave me an idea...

Would I be able to save/invest my student loan throughout the full 3 years I study, with the intention of growing my capital in order to form a deposit on a mortgage.

Not sure if this is something that you can do, due to mortgage policies?

I heard that the student loan doesn't affect your credit history, but im not sure if you're able to use it to secure another loan?

However, it will save me years and years of staying at home, working to save up for a deposit to buy my own home. Rather, it will very easy.

Any replies would be great? Really have no clue?


It's not treat as a regular source of income so it can't be used to get another loan, if that's what you're asking. It is a sensible idea to save what you don't use for a mortgage deposit, though.
Thanks for all the replies guys! Im going to think about what i will do with my loan, however id i invest my mobey it will be in unit trusts or investment trusts, as they are the least risky, as they diversify your investments. However, if im able to spend my money on whatever i want, then that means that i can use it to secure a deposit. I was unsure if i was able to do this, because most mortgage brokers dont allow you to take out loans in order to fund a deposit. But as the maintenance loan is different to comercial borrowing, then it might not affect my ability to use it for a deposit? In which case i will use it to pay for my deposit :smile: Thanks for the replies!
As I recall, there were articles of bourgeois students investing their maintenance loans in exactly this way, as their families would pay all their costs, and it was "the lowest interest loan they would ever get" according to some articles. So it's not a completely unheard of concept.

Bear in mind it's entirely possible you'll need to significantly cut back to your working hours once you begin in order to progress sufficiently with your studies.
Reply 7
Original post by Conor_Beaumont
I am currently working part time with an employer, studying my last year at A level.

I am hoping to study at my local university after this, as I have already been offered a placement.

I don't come from the richest background, and therefore will be eligible for a high percentage, if not all of the student loan.

My employer has offered to give me extra hours when I start university, and I have calculated with this: my part-time work will be sufficient enough for me to cover my living costs, as I will be communing to uni from home.

Thus, it gave me an idea...

Would I be able to save/invest my student loan throughout the full 3 years I study, with the intention of growing my capital in order to form a deposit on a mortgage.

Not sure if this is something that you can do, due to mortgage policies?

I heard that the student loan doesn't affect your credit history, but im not sure if you're able to use it to secure another loan?

However, it will save me years and years of staying at home, working to save up for a deposit to buy my own home. Rather, it will very easy.

Any replies would be great? Really have no clue?


Surely it is simpler to use the loan to pay your living costs, and save the money from your job?
Reply 8
Original post by Conor_Beaumont
I am currently working part time with an employer, studying my last year at A level.

I am hoping to study at my local university after this, as I have already been offered a placement.

I don't come from the richest background, and therefore will be eligible for a high percentage, if not all of the student loan.

My employer has offered to give me extra hours when I start university, and I have calculated with this: my part-time work will be sufficient enough for me to cover my living costs, as I will be communing to uni from home.

Thus, it gave me an idea...

Would I be able to save/invest my student loan throughout the full 3 years I study, with the intention of growing my capital in order to form a deposit on a mortgage.

Not sure if this is something that you can do, due to mortgage policies?

I heard that the student loan doesn't affect your credit history, but im not sure if you're able to use it to secure another loan?

However, it will save me years and years of staying at home, working to save up for a deposit to buy my own home. Rather, it will very easy.

Any replies would be great? Really have no clue?


Once the money is in your account it is entirely up to you what you do with it. Your tuition fee loan is however paid directly to the university.

I wouldn’t say this is innovative, plenty of students do it, but it is good that you’re thinking about your future at this age!

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