The Student Room Group

I have excess money for my student loans, what do you recommend i do with it?

I am in foundation year and got over £7000 in maintenance loan.

This money is not being used because parents and I decided it was cheaper and easier to commute there, rather than living in the student halls.

Parents think I should put the money in a savings account and leave it be. However I am skeptical whether it makes financial sense.

What would you recommend?
Original post by McDonaldsEmploy
I am in foundation year and got over £7000 in maintenance loan.

This money is not being used because parents and I decided it was cheaper and easier to commute there, rather than living in the student halls.

Parents think I should put the money in a savings account and leave it be. However I am skeptical whether it makes financial sense.

What would you recommend?

Does SFE know that you're living at home and not outside the home?
Living at home gives you a lower student loan amount - if you're found to have been over-paid then SFE will ask for immediate repayment of the overpaid amount. Quite often SFE do an audit of students asking to see proof of your rental agreement to prove you're not living at home.
Original post by PQ
Does SFE know that you're living at home and not outside the home?
Living at home gives you a lower student loan amount - if you're found to have been over-paid then SFE will ask for immediate repayment of the overpaid amount. Quite often SFE do an audit of students asking to see proof of your rental agreement to prove you're not living at home.

No they don't know.

1) How would I be able to change this?

2) Should I even accept the lower amount that they give? It all adds up to the total student debt.
(edited 2 months ago)
Original post by McDonaldsEmploy
No they don't know.

How would I be able to change this?


You should be able to log into your student finance england account and update your details for your term time location

"go to the ‘Change your details’ section of your account, select ‘University/College and course’ and complete a downloadable Change of Circumstances form."
Reply 4
Original post by McDonaldsEmploy
No they don't know.

1) How would I be able to change this?

2) Should I even accept the lower amount that they give? It all adds up to the total student debt.

It sounds like you've already accepted the first tranche of this year's maintenance loan, so why wouldn't you accept the lesser amount due from living at home? I assume there would be a way of paying it back in its entirety if you wanted to take that approach.

You could put the money in a savings account pending its return being asked for. The best accounts pay around 5% currently, which works out at a bit over £7 a month on every £1000 deposited.
The loan repayment terms are so much more reasonable than any other debt you will ever have the option to take.

If you don't need the money right now then put it in a savings account to help pay the deposit or rent on your own place to live eventually. Some savings when you're in your early 20s are a lot more valuable than an extra £20 a week in your pocket when you're in your late 40s or 50s.

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