Is there any point taking a maintenance loan if you don't need it? Watch

Mos Def
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Is there? Can i invest it somehow making sure its more than what i have to pay back with interest later on? Also if im living at home whats the max that I can get? I will not be getting a grant and stuff.

Please advise.

Cheers
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I Wanna Be Adored
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Well, it is the cheapest loan you'll ever get. If you slam it in a high interest savings account, perhaps you'd make a few quid? It's worth looking into.
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MissD'Arcy
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If you dont need one, whats the point in getting money out that you will have to pay back, with interest? It could affect your credit rating in the future, and its better not to have anything hanging over you, especially at uni...
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Mos Def
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(Original post by MissD'Arcy)
If you dont need one, whats the point in getting money out that you will have to pay back, with interest? It could affect your credit rating in the future, and its better not to have anything hanging over you, especially at uni...
Yeah but as I wont need it, i wont spend it... i can tie it up in something useful? Also whats the max I can take out?
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flipshot
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(Original post by MissD'Arcy)
It could affect your credit rating in the future, and its better not to have anything hanging over you, especially at uni...
That's a load of rubbish, it has no affect on your credit rating whatsoever. It doesn't even show on your credit report.

I live at home and I took the maintenance loan out which I have put in a ISA which earns me more interest than I am paying on the loan. So I'm making money on the loan even if its not a lot. Plus if I ever need the money in the future its there without me having to worry about taking out a loan at a higher interest rate.

You just have to make sure the account the money is in, is earning more interest than you are paying on the loan otherwise its not worth it.
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Bebbs
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Dont put it in anything riskier than a savings acct unless you seriously know what you're doing.

The rate charged on the SL should be lower than almost all bank accts so have a look around. Or just lock it in an ISA for 3 years, then either pay it back and keep the interest, or use it to pay the monthly repayments and still earn the interest on it.
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Freud
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I'm pretty sure the amount of money you'd make out of it is so little it's not worth the hassle.
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eMJaaay♥
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(Original post by Mos Def)
Yeah but as I wont need it, i wont spend it... i can tie it up in something useful? Also whats the max I can take out?
You can't take interest, its haram :p: I've applied for it even though I'm staying home and parents are paying for everything ... isn't it part of the money you don't pay back till your earning £15'000?
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squeak
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I get basic loan (non income assessed) and I'll be getting £3470 next year.

If you don't need it there's no point getting it...unless you're going to make money on the interest, but like some one else said it's probably not worth it.
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Aconite
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Putting the money in a bond or high interest savings account will earn you a couple of hundred quid, and you can just pay the loan back straight after you graduate. You won't get megabucks from it but it will be enough to provide you with a bit of emergency money.
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sdt
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(Original post by eMJaaay♥)
You can't take interest, its haram :p: I've applied for it even though I'm staying home and parents are paying for everything ... isn't it part of the money you don't pay back till your earning £15'000?
In that case dear, you can forget about university and resume your place at the kitchen because giving interest is just as haram. :rolleyes:
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Bebbs
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well say you take 3470 per year, your looking at £1300 for 3 years at 6% no inflation taken into account.

With inflation at average 3%
its around £650 for the 3 years

~£1000 for doing little more than opening a bank account seems pretty good to me
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flipshot
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I think the minimum loan for living at home is £2685.00. I get a bit more due to income assessment. This might be different for new students this year as I am an existing student.
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eMJaaay♥
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(Original post by Cereal Killer II)
In that case dear, you can forget about university and resume your place at the kitchen because giving interest is just as haram. :rolleyes:

Resume my place at the kitchen?!?!! So I can burn the house down? :p: ohhh insurance money
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RightSaidJames
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It's the cheapest loan you'll ever get, so you may as well take the loan and put it in a high interest savings account. You'll make a decent amount of money from the interest, and you also won't have to worry about the loan repayments coming out of your wages when you get to £15k a year.
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marcusfox
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To all those saying what's the point in getting it if you don't need it, read this. A top paying savings account will pay 6%+, which is going to be £180 on 3K. The interest on your loan will be much less, say around 3%, or £90. That's £90 pure profit on a year's loan.

Plus, you don't even need to start repaying until you earn over 15K. In addition, say you underestimate your spending, and you find yourself in the hole after uni? That 3-4K for three years will be almost 12K when you finish. Where are you going to get money if you don't find a job right away after graduation? Borrow it? Yeah right, for a graduate who's never had a job, or other credit, you'll be looking at high enough rates then.

Marcus
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fisherman
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Marcusfox is totally right, take it, make some money.
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marcusfox
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(Original post by eMJaaay♥)
You can't take interest, its haram :p: I've applied for it even though I'm staying home and parents are paying for everything ... isn't it part of the money you don't pay back till your earning £15'000?
This is the UK, not Saudi Arabia.

Marcus
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marcusfox
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(Original post by fisherman)
Marcusfox is totally right, take it, make some money.
Indeed, case in point...

I have much more in savings, than I owe in student loan for three years of undergraduate and one year of PGCE, plus accumulated interest since the clock started ticking 10 years ago. Yes, I spent all my first three years loan, whilst studying since I didn't get a penny from my parents, but I've been savvy enough to work it back and more.

I could quite easily repay the lot in one lump sum and avoid the loan interest accumulating, but why should I? It's making much more for me in my bank accounts than the interest being added to my loan, and at the rate I'm paying it back, currently £30 odd a month, there's going to be a lot left when it gets written off.

Of course, I hope to get a better job, which means it will be repaid more quickly, but there's still a fair chance there'll be a lot left, which is another bonus, not related to interest rates. Again, this money is making more for me, than I'm being charged for having it. So if you do get a chance to get a loan at below commercial rates of interest, take hold of it firmly by both hands.

Marcus
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Mos Def
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(Original post by marcusfox)
Indeed, case in point...

I have much more in savings, than I owe in student loan for three years of undergraduate and one year of PGCE, plus accumulated interest since the clock started ticking 10 years ago. Yes, I spent all my first three years loan, whilst studying since I didn't get a penny from my parents, but I've been savvy enough to work it back and more.

I could quite easily repay the lot in one lump sum and avoid the loan interest accumulating, but why should I? It's making much more for me in my bank accounts than the interest being added to my loan, and at the rate I'm paying it back, currently £30 odd a month, there's going to be a lot left when it gets written off.

Of course, I hope to get a better job, which means it will be repaid more quickly, but there's still a fair chance there'll be a lot left, which is another bonus, not related to interest rates. Again, this money is making more for me, than I'm being charged for having it. So if you do get a chance to get a loan at below commercial rates of interest, take hold of it firmly by both hands.

Marcus
Rather than that, i was thinking along the lines of Gilts? What about that Marcus?
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