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Loan
Former Member
Posts: 1,876,323 The Mix Honorary Guru
can somebody please tell me if the maintainance loan needs to be repaid like the tuition fee...
Post edited by JustV on
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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.
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
: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.
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.
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.
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.
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.
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.
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:
You understand it though ? :thumb: