majorbomper
Badges: 5
Rep:
?
#1
Report Thread starter 2 weeks ago
#1
I'm in the incredibly lucky and privileged position where I have the option of whether or not to take out a student loan. Do you think it's better to take a loan that I may never pay off or just pay the full price straight off?
As well as that, I've heard from some sources that applying for tuition fees and maintenance loans are different, and that maintenance loans have interest on them. Would you recommend taking out just a tuition loan?

Thanks
0
reply
_Mia101
Badges: 21
Rep:
?
#2
Report 2 weeks ago
#2
(Original post by majorbomper)
I'm in the incredibly lucky and privileged position where I have the option of whether or not to take out a student loan. Do you think it's better to take a loan that I may never pay off or just pay the full price straight off?
As well as that, I've heard from some sources that applying for tuition fees and maintenance loans are different, and that maintenance loans have interest on them. Would you recommend taking out just a tuition loan?

Thanks
Well it honestly depends. For starters, you need to remember that the interest on student loans starts immediately not when you graduate. If you can put the money for your tuition into a savings account with an interest rate that his higher than that of student loan it'd be more cost effective to get the loan then pay it back after (perhaps in full)

Now there are other things to consider, do you think you'll have a high paying job? As that will increase/ decrease the possibility of you paying back the loan in full plus interest.

Also, will you end up taking time off work? Perhaps if you have kids? This would affect whether you'd end up paying back the loan or not.

Honestly, there are many other variables and a quick Google search will bring up a number of sites that have gone over the pros and cons of getting a tuition/maintenance loan over not getting one
0
reply
Shirohige
Badges: 6
Rep:
?
#3
Report 2 weeks ago
#3
(Original post by majorbomper)
I'm in the incredibly lucky and privileged position where I have the option of whether or not to take out a student loan. Do you think it's better to take a loan that I may never pay off or just pay the full price straight off?
As well as that, I've heard from some sources that applying for tuition fees and maintenance loans are different, and that maintenance loans have interest on them. Would you recommend taking out just a tuition loan?

Thanks
Hi,

You may get yes and no answers for your reply, so ultimately the decision is yours regardless, people see these loans as not a loan but what i've seen it called - Graduation tax, haha.

If your in a financial position where you can afford to pay your fees yourself then thats alright, however you could also save the 27+k base amount of tuition and take the loan.
0
reply
emmag1975
Badges: 7
Rep:
?
#4
Report 2 weeks ago
#4
I would definitely recommend it! You never actually pay back the full loan (and don’t even start to until you’re earning over a certain threshold) and after about 40 years the loan completely goes. You should never pay off the whole thing at once, and as for paying it back you never even see the money you’re paying as it comes out of your pay slip before you get it...definitely worth it!!
0
reply
RogerOxon
Badges: 21
Rep:
?
#5
Report 2 weeks ago
#5
(Original post by emmag1975)
You never actually pay back the full loan
Some will.
2
reply
RogerOxon
Badges: 21
Rep:
?
#6
Report 2 weeks ago
#6
(Original post by majorbomper)
I'm in the incredibly lucky and privileged position where I have the option of whether or not to take out a student loan. Do you think it's better to take a loan that I may never pay off or just pay the full price straight off?
As well as that, I've heard from some sources that applying for tuition fees and maintenance loans are different, and that maintenance loans have interest on them. Would you recommend taking out just a tuition loan?
It's complicated. A couple of quesitons to get you thinking:

Do you expect to be in a high-paying career?
Do you expect to live in a country where the repayments are tax deductible?
0
reply
emmag1975
Badges: 7
Rep:
?
#7
Report 2 weeks ago
#7
(Original post by RogerOxon)
Some will.
I know, what I mean is that it’s futile paying it back because it will eventually disappear so it’s wasting money by paying it back...
0
reply
artful_lounger
Badges: 20
Rep:
?
#8
Report 2 weeks ago
#8
There were (possibly apocryphal) stories going around about 10 years ago of extremely wealthy families having their children take out maintenance loans purely invest in certain kinds of investments because the extremely low interest rate on the student loans were less than the expected return on the investment...¯\_(ツ)_/¯
0
reply
RogerOxon
Badges: 21
Rep:
?
#9
Report 2 weeks ago
#9
(Original post by emmag1975)
I know, what I mean is that it’s futile paying it back because it will eventually disappear so it’s wasting money by paying it back...
There is a minimum repayment (based on your salary), so you may pay it back, even if you don't want to.
0
reply
ajj2000
Badges: 20
Rep:
?
#10
Report 2 weeks ago
#10
As stated above it depends to a large extent on how well paid a career you are targeting. Also how much money you have - or your family have. A fund of £100k - you probably take the loan. £1 million - I’m not so sure.
0
reply
emmag1975
Badges: 7
Rep:
?
#11
Report 2 weeks ago
#11
(Original post by RogerOxon)
There is a minimum repayment (based on your salary), so you may pay it back, even if you don't want to.
Yes I know. I mean it’s unlikely you’ll pay back the entire thing (like everything you owe) as it’ll eventually run out.
0
reply
RogerOxon
Badges: 21
Rep:
?
#12
Report 2 weeks ago
#12
(Original post by emmag1975)
Yes I know. I mean it’s unlikely you’ll pay back the entire thing (like everything you owe) as it’ll eventually run out.
Some will earn enough to, so you have to make a decision based on your own circumstances and likely career path.
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • University of Groningen
    Undergraduate Open Day Undergraduate
    Fri, 31 Jan '20
  • Sheffield Hallam University
    Course Open Day Undergraduate
    Sun, 2 Feb '20
  • University of Bath
    Postgraduate Virtual Open Day 5 February 2020, 11:00-15:00 (UK time) Postgraduate
    Wed, 5 Feb '20

Why do you want to do a masters?

Great for my career (84)
37%
I really love the subject (59)
25.99%
I don't know what else to do (29)
12.78%
I can't get a job (15)
6.61%
My parents want me to (5)
2.2%
I don't know... I just do (35)
15.42%

Watched Threads

View All