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Loan

Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
can somebody please tell me if the maintainance loan needs to be repaid like the tuition fee...

Comments

  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Yes it does.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    oh...ok thanks. in that case i won't apply for it!
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Nutter wrote: »
    oh...ok thanks. in that case i won't apply for it!

    :) I did, I'm just sticking it in an ISA so i can earn a bit of money from it and then pay it back again at the end.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Nutter wrote: »
    oh...ok thanks. in that case i won't apply for it!

    APPLY APPLY APPLY...unless you're stinking rich and can live without the extra £5k or however much it is nowadays. You also don't want to find youself working millions of hours at a supermarket or whatever to make up the cash shortfall from not taking out the loan.

    Yes you DO have to pay it back BUT it attracts a minimal interest rate (certainly the lowest interest loan of your adult life) and you only have to pay it back after you graduate and are earning in excess of £15 000. Those paying it back now will be able to give you more information here, but I think you pay it back as a certain proportion of your salary, however much you've taken out.

    And it's muuuccch cheaper than maxing the old credit cards or living off your overdraft - which also has to be paid back once you graduate.

    Seriously, you'd be a fool not to take it out :)
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Meryn wrote: »
    APPLY APPLY APPLY...unless you're stinking rich and can live without the extra £5k or however much it is nowadays. You also don't want to find youself working millions of hours at a supermarket or whatever to make up the cash shortfall from not taking out the loan.

    :yes: Unless you can really afford not having it, it is best to apply for the loans. The intrest is very favourable compared to most other options and the repayments until you've finished your degree are in employment. The current rates of repayment are 9% on anything over £15K a year. So if you earn 20K you repay £20-15 = 5K x 9% = £450 a year. It gets dedutced from your pay by your employer so you dont really notice the missing money every month. There are seperate repayment agreements if your self employed though.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Yeah, like everyone says; go for it.
    I am... I'm applying for tuition fee loan (my course is only £1200 a year) and maintainance loan as I'm not eligible for any grants and can't work during my course....having the maintainance loan means an extra few pounds towards the costing of living.

    It's definitely worth considering, as it does have the best interest rate you're every gonna get and you don't have to pay it off straight away etc etc.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    will be living at home for the first year, so would it still be worth it?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Nutter wrote: »
    will be living at home for the first year, so would it still be worth it?

    I'm living at home also and I've taken it out, just got over £2500 and like i said I'm putting it in a high interest account.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    I'll be living at home too and I'm still gonna claim it.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    squeal wrote: »
    :) I did, I'm just sticking it in an ISA so i can earn a bit of money from it and then pay it back again at the end.

    You better taking your loan even if your not going to use it. Like Squeal said, invest it in an ISA or something similar and pocket the interest. Your loan is index linked, so doesnt really have an interest rate.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    lol. i have absolutely no idea what you are talking about with interest rates and ISA's.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Nutter wrote: »
    lol. i have absolutely no idea what you are talking about with interest rates and ISA's.

    take your loan, its free money (yes it has to be paid back) but only including inflation. In the mean time any money (interest) you make from investing your loan is yours too keep.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Nutter: "Interest rate" is the term we use to determine how much money you have to pay back. Basically, you pay the original loan, plus a bit extra. For example, if I loaned you £100 with an interest rate of 10%, you would pay back £110. As for ISAs, I'm really not the person to explain that one.

    Meantime... always apply for the loan. Bear in mind that, because it's in your bank account, nobody is saying it must be used. It would be there to help you if a rainy day came, at the least.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Depends on how much you're planning on socialising tbh, i know people who have got by ok without a maintenance loan but i couldnt do it. rinsed most of mine on drink tbh
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    how much should i ask for? i'm still not totally convinced but will think it through
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Nutter wrote: »
    how much should i ask for? i'm still not totally convinced but will think it through

    As much as they will give you.

    Example: I will loan you for one year £1000 and asked for 0.5% interest i.e. (£5), if you invest the £1000 in an ISA, savings account, business venture etc and earn more than (0.5%/ £5) you make a profit.

    You take my £1000 and stick it in a savings account which pays 4% ie. (£40) you earn £1040. You pay me back £1005 and you make £35 profit.

    The more money you can get and dont need, the more profit you can make.

    :thumb:
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    wow ok. lol. don't quite know what to say now. :)
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Nutter wrote: »
    wow ok. lol. don't quite know what to say now. :)

    You understand it though ? :thumb:
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Nutter wrote: »
    how much should i ask for? i'm still not totally convinced but will think it through
    Just tick the "Maximum" option, or however it's worded on the form. The local authority will then assess if you're entitled to that. If not, they'll tell you how much you can actually receive.
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