The Student Room Group

Should I apply for a maintenance loan?

I have decided to study at University again, after dropping out years ago. I am over 25, and working full-time whilst studying (doing part time evening study).

I earn an ok salary to support myself financially (+30k). I live at home with my mum (unsure if this is relevant or not, given I am over 25). I already have quite a lot of student debt from my previous study, when I was getting a full maintenance loan at the time due to my financial circumstances.

So my question is basically this - it's really hard to work out whether to apply for a maintenance loan now. I think given my earnings, I will still be entitled to some money each year as I'm pretty sure that it will be based on my income alone. I'm already in a lot of debt, and the loan will obviously increase the amount of debt I'm in - but I feel like I'm unlikely to pay back the loan anyway given the mega high interest rates, and will probably always be paying something from my income to student loan company regardless - so in a way it feels like money I could use now to supplement my income and save.

Would be interested to hear if anyone is in a similar situation or any advice suggestions people have. Obviously I am fortunate that I do not need the loan to live off in the same way as others do - but I'm wondering if it's silly to not make use of it.
(edited 1 month ago)
Original post by lilycb26
I have decided to study at University again, after dropping out years ago. I am over 25, and working full-time whilst studying (doing part time evening study).
I earn an ok salary to support myself financially (+30k). I live at home with my mum (unsure if this is relevant or not, given I am over 25). I already have quite a lot of student debt from my previous study, when I was getting a full maintenance loan at the time due to my financial circumstances.
So my question is basically this - it's really hard to work out whether to apply for a maintenance loan now. I think given my earnings, I will still be entitled to some money each year as I'm pretty sure that it will be based on my income alone. I'm already in a lot of debt, and the loan will obviously increase the amount of debt I'm in - but I feel like I'm unlikely to pay back the loan anyway given the mega high interest rates, and will probably always be paying something from my income to student loan company regardless - so in a way it feels like money I could use now to supplement my income and save.
Would be interested to hear if anyone is in a similar situation or any advice suggestions people have. Obviously I am fortunate that I do not need the loan to live off in the same way as others do, but I know I am entitled to some money.

Hi @lilycb26 ,

Deciding about a maintenance loan can be quite tricky, but it sounds like you're considering all the important things.

Have you used the student finance calculator? This could help show you how much maintenance loan you are actually eligible for, and it is based on your household's income, so it would include your mum's plus your own. Would you be living at home whilst doing your part time studying?

If you started your previous course before August 2023 you will be on the previous repayment plan, plan 2. If you decide to study now, it will be plan 5. The interest and repayment between the plans works slightly differently, I'd recommend reading sfe's repayment guide. It crucially also has information about students who will be on more than one plan. The two plans get written off after different periods, plan 2 after 30yrs, plan 5 after 40, but I'm not sure how it might work with two different plans.

If you feel you're unlikely to pay the loan back then I'd recommend crunching the numbers just to be sure! Work out how much you could get in the loan, and see if that would significantly impact the amount you would repay or not. By the sounds of it, the tuition loan will be the larger loan to repay and the maintenance might be quite small by comparison, so you could take it to supplement your income. On the other hand, could your income alone be enough to get you through your studies so you might not need the loan?

Hope this information and things to think about helps,

Joshua
UoS Ambassador
Reply 2
Original post by Uni of Southampton Students
Hi @lilycb26 ,
Deciding about a maintenance loan can be quite tricky, but it sounds like you're considering all the important things.
Have you used the student finance calculator? This could help show you how much maintenance loan you are actually eligible for, and it is based on your household's income, so it would include your mum's plus your own. Would you be living at home whilst doing your part time studying?
If you started your previous course before August 2023 you will be on the previous repayment plan, plan 2. If you decide to study now, it will be plan 5. The interest and repayment between the plans works slightly differently, I'd recommend reading sfe's repayment guide. It crucially also has information about students who will be on more than one plan. The two plans get written off after different periods, plan 2 after 30yrs, plan 5 after 40, but I'm not sure how it might work with two different plans.
If you feel you're unlikely to pay the loan back then I'd recommend crunching the numbers just to be sure! Work out how much you could get in the loan, and see if that would significantly impact the amount you would repay or not. By the sounds of it, the tuition loan will be the larger loan to repay and the maintenance might be quite small by comparison, so you could take it to supplement your income. On the other hand, could your income alone be enough to get you through your studies so you might not need the loan?
Hope this information and things to think about helps,
Joshua
UoS Ambassador

Hi Josh,

Thanks for this. I have used the student finance calculator - I was under the impression that since I am over 25, my mum's earnings would have no bearings on the amount I am entitled to, regardless of whether I am living at home or not - is this not correct? I will be living home for my studies, at least for now.

I hadn't considered what you mention about the repayment plans being different so I will look into that. I do feel it's very unlikely I'll ever pay my loan back, given I received 3 years of a maintenance loan beforehand and 3 years of tuition, and will be adding another 3 years on top of that now. Even since I've been paying my loan back, due to interest the figure has actually gone up not gone down, and now I will be adding further to it. This is what is prompting me to think I may as well apply for the maintenance loan - but it's very difficult to work out how likely I will or will not be to pay it off. What you've said about it taking 40 years under this new plan is definitely food for thought though - thank you!

Quick Reply