Student finance advise

Hi I wanted to ask is it smart to take out maximum student finance and put it in into an ISA so that you can save up for a deposit, (as well as work during uni).Or is the interest you have to pay back not a smart decision and it's better to work more and save up the same amount of money through working ?

Reply 1

cos123

The interest you pay back is taken out of your pay automatically, like income tax and national insurance. Take the maximum load regardless, you won't pay back the student loan in your lifetime so an extra few thousand or hundred. Whatever it is, wouldn't change anything.

You can put the money in an ISA or invest otherwise or spend it on nights out or hobbies etc whatever you want. Student finance and the government know how students are and it is fine for you to use it how you want. Just don't be in a situation where you cannot afford food or your housing. Otherthan that, your money, do what you want.

Reply 2

normaw

Clearing and Applications Advisor, Universities Forum Helper

Original post by jubnatan

If you are English and going start uni this year (or later), then you will be on the the new Plan 5 loans. The main changes that you need to consider are that the repayment term has been extended to 40 years and the repayment threshold reduced to £25,000. What this means is the majority of new students will pay a lot more for their degrees than students on the older loan plans. The following article is worth a read as it explains loans in more detail and estimates what you will repay by earnings:

https://www.moneysavingexpert.com/students/student-loans-2023/

If you don't need your loan for living and accommodation expenses, then saving it for a house deposit might be a good move - especially if you consider a Lifetime ISA where you get a 25% bonus on the amount you save.