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Adding another £7000 to my loan!
Former Member
Posts: 1,876,323 The Mix Honorary Guru
So ive been through uni, have a degree in film and in debt to the tune of roughly £12,000, lovely.
Im now thinking about applying for a higher education teaching course which will allow me to teach film at sixth form level.
However the fee for this is £7000, totalling me at £19,000 in debt!!!
I know that doing this will put me on the right track to having a good career but it just dawned on me how much that is. I have some money saved up that i was planning to put towards paying off my exisiting debt but it seems pointless now that that figure is going to be increasing by more than half!!
On the other hand, where am i going to be in a years time? Probably still looking for work exerience with barely anything decent on my CV.
Should i just say that the money doesnt matter and just go for it?
Im now thinking about applying for a higher education teaching course which will allow me to teach film at sixth form level.
However the fee for this is £7000, totalling me at £19,000 in debt!!!
I know that doing this will put me on the right track to having a good career but it just dawned on me how much that is. I have some money saved up that i was planning to put towards paying off my exisiting debt but it seems pointless now that that figure is going to be increasing by more than half!!
On the other hand, where am i going to be in a years time? Probably still looking for work exerience with barely anything decent on my CV.
Should i just say that the money doesnt matter and just go for it?
0
Comments
Is the money you spent on your first degree through student loans or a bank? Just thinking if it's through student loans you would get the grace period of having to earn 'x' amount (not sure on the current amount) before you'd have to repay, which might make things a bit easier. You could effectively 'forget' about that loan until you qualify and are on a half decent salary and use the money you've saved to fund the further study. Also, would you be able to work part-time and study part-time? That might also mean you would be borrowing less. There used to be career development loans with half decent interest rates, so that could be another avenue to explore.
If you're existing loan is through a bank, it would be worth talking to them about consolidating that loan with the additional borrowing you need. There seems to be a focus on lower APR's on loans in excess of approx £6k for a lot of the major banks at the moment.
It's hard thinking about the future with all this debt over your head. I am in the same position so I know how it feels! But I think it's great that you want to pursue a career of teaching which can be very rewarding.
fibberygibbert raises some important things to consider so I will not repeat them.
I have found this site on the education.gov.uk website - http://www.education.gov.uk/get-into-teaching/funding/training-in-england/postgraduate-funding.aspx
It's about funding specifically to teaching. They also have a phoneline that you can call for more info about getting into teaching - 0800 389 2500.
Have you considered other course providers that may offer the course for cheaper? For example the OpenUniverstiy or have a look at the WhatUni.com website.
Lastly I would encourage you to preserver if teaching is what you really want to do. Don't be put off by things at such an early stage. Goodluck
:thumb:
My existing debt is with student finance. I am able to wait until im earning 15k or more to pay it back, but all that while interest is building up (im not sure what the rate is, I have it written down somewhere). But you're right, if its not too bad it may just using my savings to pay for this new course. Also, I am working full time at the moment but I will be able to cut my hours down to part time no problem, so Ill be able to work 2/3 days a week. Its something I guess, but wont have much money coming in.
Also, thanks LittleOne, those links are really helpful
The interest on the Student Finance type of loan is charged at RPI so it's basically a free loan. In real terms you pay back what you borrow. If you are getting further funding at that rate that's a fucking good deal.
I dont know what this means. Student finance charge interest so how is that a free loan?
I found this about interest rates, http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/Gettingstarted/DG_199403 which is interesting because I was told there was no interest on student loans but seems like there is depending on when you started.
Soooo, interest doesnt start until i pay any back? If this is true, that would be sooo good, cos the interest building up is what im worried about
To explain this simply, this year a basket of goods costs £100 (as an example). With inflation at 5% next year the same basket of goods will cost you £105. It's more money but the relative worth remains the same. You borrowed a basket of goods from the SLC and you will pay a basket of goods back to them.
Interest, by the way, is charged from the day you take out the loan until the day you repay it. Interest continues to accrue during your studies and at any point you're not earning over £15,000pa.
Bear in mind that the student funding packages are changing this year. It isn't a case of "extending" your loan from the SLC, you would take a new loan out on the new terms in addition to your existing loan. If you look on directgov or on the DfES website you will get a better idea of how much a PGCE will cost you.
As with any type of student loan, it is only repaid if you are earning above a certain threshold and it is deducted at source from your wages. In just about every way it is a tax not a loan and it is much better to think of your student borrowing from the SLC in this way. It's not a "debt" in the traditional sense.
Just need to have a big think now about when/how to pay for it all
Go for it.
Oh and i've sent in my application!
If you can borrow the money from the Student Loans Company, though Student Finance England/Wales or SAAS, then borrow the money and keep your nest egg. You are charged interest but this is only inflation. The cheapest personal loan or mortgage deals are coming in at 8% now, minimum, which is a long way above inflation.
If you waste your savings on repaying SLC loans, or waste your savings instead of taking out an SLC loan, you're daft. It's the cheapest loan you'll ever have and you won't get any benefit from paying it off. The downside is you lose your savings.
If you would have to borrow the tuition fees commercially- either on a graduate loan or a career and professional development loan- then you'd be better off using the savings instead, and using the money you would have paid on loan repayment instalments to rebuild your savings.
There are decent returns to be had on the savings if you put them in an investment vehicle for a year or two. Those returns will at least be the equal of the interest rate (which is capped at RPI for your existing loan and up to RPI+3% for your new one) and it gives you the flexibility of keeping the money for when you do need it.
The student loan comes out of your wage and there's really no logical reason for using your only savings to avoid it. If you had savings of £100k instead of £10k it'd be a very different matter, but if you had those savings you wouldn't be asking the question.