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Should I get a student loan even if I dont need it?

I'm doing a placement year at the moment and dont have a student loan (for this year), is it worth applying for one anyway for the added interest in my account? Or would I be pointlessly adding to my existing debt. I'd get £2,300 loan in 3 installements and they'd pay my £600 "tuition" fee for the year.

Comments

  • atypical
    atypical Posts: 1,344 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 19 November 2009 at 8:17PM
    It's worth taking the £2,300 maintenance loan but if you can pay for the £600 tuition fees you should do so without taking the loan. As long as you're not tempted to spend it!

    The interest rate on the loan is 0% this year. An instant access savings account would be best for you.
  • CDes
    CDes Posts: 49 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I'd say go for it. It's a free loan in real terms basically, even though the interest when you put it in savings won't amount to much right now. Could come in handy as a rainy day fund.
  • purplebanna
    purplebanna Posts: 39 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    edited 22 April 2011 at 2:29PM
    As you say, 0% interest, and even when it does go up its only with inflation. So really I was just looking for some closure.
  • Why is your tuition fee only £600?
  • Stubert
    Stubert Posts: 733 Forumite
    Why is your tuition fee only £600?

    If the OP started before top up fees came in - if you do a year abroad (and i assume from this post a sandwich year) in 2005 or before you only pay half price tuition fees for that year you are not at your university. £1255 (well thats what they were for me last year) halfed is roughly £600.
  • Hi,
    I started after 2006, and I am now doing a placement. Unfortunately my university is a robbing !!!!!!! and charge students doing a placement a "admin" fee and "medical insurance", coming over £600.

    Its a disgrace, even if you found the placement yourself you still have to pay the admin fee!
  • Stubert
    Stubert Posts: 733 Forumite
    Is your university in the UK? It seems odd to have to pay medical insurance if it is...
  • Yes it is. To be honest, its a con. Medical insurance my !!!!.
  • cjpaz
    cjpaz Posts: 16 Forumite
    I took out a loan when i was in uni, going back about ten years ago now and at the time i didnt need it either. I was living at home with me olds and working part time, but close to full time hours. I did it for the two reasons stated above, to have it gaining me interest (not sure how much i got) and for a rainy day.

    The thing that you have to be careful of though is that you are strong and dont waste it. I did not touch it at all through the three years that i was there, but then when i left and was tsuck in a naf job i ended up quiting and living off/ wasting the money!
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