The Student Room Group

Doctoral loan 29k, dont need it but should I use it

Hello,

I am eligible for the roughly 29k (28,673) doctoral loan as I am doing a 3 Year PhD. I don't need the loan, as I am able to live at home and saved abit before the PhD.

Can someone help with the maths?
It has an interest rate of 7.1%, and I will pay 6% of the difference between the threshold of £1750 per month pre tax and whatever salary I will be on after April 2026, so I think I will be on £3750 pre tax (upon finishing my PhD). I reckon this means I would pay £120 a month from my salary from the doctoral loan.
120x12=£1440 per year repaid.
1440x30=43,200 repaid over 30 years, despite taking a loan of £29k. eh?

Do I just bank the ~29k? Do I stick it in a stock market tracker? Do I use it for a house deposit? Pay off my 20k outstanding on a car?

Or will I be paying more in interest overall if I take the loan, than if I did not take the loan.

No partner, no home ownership, no glamourous life at this stage.

thanks,
(edited 11 months ago)
Reply 1
Original post by Cookieeater
Hi! Did you end up going with the loan? I'm now in the same predicament

Bumping a 10-month old thread for account that hasn't been used since.

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