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  • FIRST POST
    • DirtyLion
    • By DirtyLion 14th Mar 17, 8:46 PM
    • 5Posts
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    DirtyLion
    Should he take out a student loan or not?
    • #1
    • 14th Mar 17, 8:46 PM
    Should he take out a student loan or not? 14th Mar 17 at 8:46 PM
    I have an 18 year old brother in law who lives with his mum, has no intention of moving out or even learning to drive. He received a large inheritance from his late father which sits in trust and his education fees can be paid from this and he occurs no living costs at all while at home.

    His mum says he should take out a student loan despite having the money in trust and no financial outgoings, she sees it as free money and you can't lose. It seems odd to me that you'd want to have a debt when it's not necessary but according to her, Martin Lewis strongly recommends all students take out the loan whether they need it or not, is this true?

    Could someone in the know please tell me whether a student loan would be a good idea or not given his situation?
Page 1
    • Ed-1
    • By Ed-1 14th Mar 17, 8:56 PM
    • 2,043 Posts
    • 1,102 Thanks
    Ed-1
    • #2
    • 14th Mar 17, 8:56 PM
    • #2
    • 14th Mar 17, 8:56 PM
    I have an 18 year old brother in law who lives with his mum, has no intention of moving out or even learning to drive. He received a large inheritance from his late father which sits in trust and his education fees can be paid from this and he occurs no living costs at all while at home.

    His mum says he should take out a student loan despite having the money in trust and no financial outgoings, she sees it as free money and you can't lose. It seems odd to me that you'd want to have a debt when it's not necessary but according to her, Martin Lewis strongly recommends all students take out the loan whether they need it or not, is this true?

    Could someone in the know please tell me whether a student loan would be a good idea or not given his situation?
    Originally posted by DirtyLion
    Yes max out the loan, forget it as it's not a debt in practice - it's a tax contribution set at 9% of earnings above a threshold for undergraduate loans and 6% of earnings above a threshold for postgraduate loans.

    So for a good majority, the amount borrowed will be more than the amount actually paid back in contributions as the Government writes off any outstanding amount 30 years from the April after leaving the course.
    • venison
    • By venison 15th Mar 17, 10:40 PM
    • 1,351 Posts
    • 1,441 Thanks
    venison
    • #3
    • 15th Mar 17, 10:40 PM
    • #3
    • 15th Mar 17, 10:40 PM
    And taking out the loan can mean access to "free" bursaries
    I am now a Board Guide on the Credit card board and the Loan board and Benefits board (But give me time to learn the ropes thanks).
    • Starrystarrynight1
    • By Starrystarrynight1 20th Mar 17, 10:15 AM
    • 134 Posts
    • 266 Thanks
    Starrystarrynight1
    • #4
    • 20th Mar 17, 10:15 AM
    • #4
    • 20th Mar 17, 10:15 AM
    Does your brother intend to get a job at some point? I know everyone says take out the loans, but if he doesn't need to, or doesn't intend to work, then it seems a bit immoral to me, as he will never repay it. I'll probably get hammed for saying this. LOL!
    -------------------------------------------------------------------------------------------------
    I used to be Starrystarrynight on MSE, before a log in technical glitch!
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