Substantial savings - is maintenance loans needed?

9

Saved quite a bit of money over the last few years (enough to pay rent for nearly 2 years in london). May decide to go to uni in london and wondered if using my savings is worth it instead of applying for maintenance loans? Half of it is in a Cash ISA and the rest is in a normal bank account.
My parents also said that once the money runs out they can help me with that. I applied for just tuition fees however and wasn’t sure if I should’ve applied for maintenance as well. Any advice?

Reply 1

cksiu

Universities Forum Helper

15

Original post

by lemonte

Saved quite a bit of money over the last few years (enough to pay rent for nearly 2 years in london). May decide to go to uni in london and wondered if using my savings is worth it instead of applying for maintenance loans? Half of it is in a Cash ISA and the rest is in a normal bank account.
My parents also said that once the money runs out they can help me with that. I applied for just tuition fees however and wasn’t sure if I should’ve applied for maintenance as well. Any advice?

Your parents are so caring.

I understand what you feel. From your parents' angle, they on one hand are so delighted and proud if you going to uni, on the other hand are so worried you turning into debts.

Your savings would be enough for about 2/3 of the fees and costs, let your parents do the part they wished to. You won't burden them, instead you will relieve their worry.

(edited 10 months ago)

Reply 2

normaw

20

Original post

by lemonte

Saved quite a bit of money over the last few years (enough to pay rent for nearly 2 years in london). May decide to go to uni in london and wondered if using my savings is worth it instead of applying for maintenance loans? Half of it is in a Cash ISA and the rest is in a normal bank account.
My parents also said that once the money runs out they can help me with that. I applied for just tuition fees however and wasn’t sure if I should’ve applied for maintenance as well. Any advice?

There are a few things to consider before you make this decision:

- once you graduate and your income triggers repayments, you will be paying out the same amount each month no matter how much you have borrowed as the repayments are based on income above the salary threshold (currently £25k) not the loan amount
- would you be better hanging on to your savings so that the money could go towards a mortgage deposit, car, etc. once you graduate

It is a complex decision and is explained much better in the following articles by Martin Lewis. I would suggest that you and your parents read them before making any decision. And if you do decide that you do want to apply for the maintenance loan, it is easy to change this through your online account.

https://www.moneysavingexpert.com/students/student-loans-england-plan-5/
https://www.moneysavingexpert.com/students/should-i-get-student-loan/

Substantial savings - is maintenance loans needed?

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