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  • FIRST POST
    • sadders
    • By sadders 6th Nov 17, 9:25 AM
    • 6Posts
    • 5Thanks
    sadders
    Take a student loan or pay fees?
    • #1
    • 6th Nov 17, 9:25 AM
    Take a student loan or pay fees? 6th Nov 17 at 9:25 AM
    My daughter is looking to start university next years.

    There have been investments in her name over the years and an inheritance that could pay her fees and living expenses.

    Would she be better doing that or should she take out student loans and keep the money back for e.g. for a mortgage deposit in the future?
Page 1
    • Herzlos
    • By Herzlos 6th Nov 17, 9:44 AM
    • 6,069 Posts
    • 5,514 Thanks
    Herzlos
    • #2
    • 6th Nov 17, 9:44 AM
    • #2
    • 6th Nov 17, 9:44 AM
    Student loans are the cheapest credit she'll likely ever get - use them first and pay them off from savings/investments whenever you need to.
    • sadders
    • By sadders 6th Nov 17, 10:00 AM
    • 6 Posts
    • 5 Thanks
    sadders
    • #3
    • 6th Nov 17, 10:00 AM
    • #3
    • 6th Nov 17, 10:00 AM
    Student loans are the cheapest credit she'll likely ever get - use them first and pay them off from savings/investments whenever you need to.
    Originally posted by Herzlos
    Hence the question.

    My wife and daughter would like to pay the fees.

    I think that she will never be able to raise the deposit for a mortgage without this help.
    • PeacefulWaters
    • By PeacefulWaters 6th Nov 17, 12:03 PM
    • 7,300 Posts
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    PeacefulWaters
    • #4
    • 6th Nov 17, 12:03 PM
    • #4
    • 6th Nov 17, 12:03 PM
    Given that there's a reasonable chance she'll never repay a student loan I'd suggest borrowing is a good idea.

    I'm sure if you Google "Martin Lewis student loans" you'll find a more rounded explanation to guide your decision.
    • Herzlos
    • By Herzlos 6th Nov 17, 4:23 PM
    • 6,069 Posts
    • 5,514 Thanks
    Herzlos
    • #5
    • 6th Nov 17, 4:23 PM
    • #5
    • 6th Nov 17, 4:23 PM
    Hence the question.

    My wife and daughter would like to pay the fees.

    I think that she will never be able to raise the deposit for a mortgage without this help.
    Originally posted by sadders
    Student loans aren't regarded as loans as far as mortgage deposits are concerned, so stick her tuition fees into savings and let her borrow. If you're lucky the gains on the savings with be more than the interest on the loans. This then gives her a deposit, whereas if you pay her fees, she'll have no deposit.
    • tketchup
    • By tketchup 7th Nov 17, 11:33 AM
    • 1 Posts
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    tketchup
    • #6
    • 7th Nov 17, 11:33 AM
    • #6
    • 7th Nov 17, 11:33 AM
    It is a massive a scam! Have you seen the news lately?

    Taken from the brochure:

    "The regulations may change from time to
    time and this means the terms of your loan may
    also change..."


    There is no such thing as free money! The loans are made by legislation that allows the terms to be changed unfairly against the borrower. A government who makes rules that are non binding on themselves cannot be trusted. Her life could be ruined by having this potentially expensive debt chained round her neck forever without knowing who she might end up eventually owing it to.

    If she absolutely needs a specific degree for a chosen profession then she should pay upfront and have a life of freedom ahead. She could even study overseas and pay much less or choose a fast track 2 year course.

    There are other options in life than university, - apprenticeships (some now pay for degrees part time). armed forces, start a business, etc.

    Rather than asking on a forum, you should consult a contract lawyer. He is likely to advise you of the risks.
    • smithers1981
    • By smithers1981 7th Nov 17, 2:24 PM
    • 689 Posts
    • 506 Thanks
    smithers1981
    • #7
    • 7th Nov 17, 2:24 PM
    • #7
    • 7th Nov 17, 2:24 PM
    Take the student loan and use savings towards deposit.
    'Better to Live a Day as a LION than 100 years as a lamb'
    • jennystiller
    • By jennystiller 7th Nov 17, 7:58 PM
    • 1 Posts
    • 0 Thanks
    jennystiller
    • #8
    • 7th Nov 17, 7:58 PM
    • #8
    • 7th Nov 17, 7:58 PM
    If I were you, I'd take the student loan.
    • Gymbob
    • By Gymbob 27th Nov 17, 6:45 PM
    • 11 Posts
    • 2 Thanks
    Gymbob
    • #9
    • 27th Nov 17, 6:45 PM
    • #9
    • 27th Nov 17, 6:45 PM
    It more comes down to what job is she looking to do after her degree. 'If' this is something which pays fairy highly I'd consider paying the student loans.

    Student loans are not a 'low rate' as people keep saying they're 6.1% whilst studying and then if you earn a decent amount it remains at 6.1% (over £42,000 I think). But it'll be 6.1% of the total sum.. which will mean you are paying for nothing.. the whole system is a joke
    Last edited by Gymbob; 29-11-2017 at 2:50 AM.
    • adamh87
    • By adamh87 28th Nov 17, 8:57 PM
    • 40 Posts
    • 7 Thanks
    adamh87
    It more comes down to what job is she looking to do after her degree. 'If' this is something which pays fairy highly I'd consider paying the student loans.

    Student loans are not a 'low rate' as people keep saying they're 6.1% whilst studying and then if you earn a decent amount it remains at 6.1% (over £21,000). But it'll be 6.1% of the total sum.. which will mean you are paying for nothing.. the whole system is a joke
    Originally posted by Gymbob

    This ^^^ is very apt, does your daughter really need to go to university? It's really only worth it financially for Dentists, Doctors, Engineers, Economists, Lawyers (from a credible institution), STEM subjects & anything from Oxbridge.

    Personal opinion: the VFM on a university education was poor a decade ago when fees were £1.5k, now they're £9k and wages haven't improved in that time.

    While many people say it's not proper debt, I can assure you that it feels like proper debt.

    At best a student's volunteering to pay an extra level of tax which you could avoid by starting work at 18, or even giving her a fraction of the £27k to go travelling for a year.
    • Voyager2002
    • By Voyager2002 28th Nov 17, 10:07 PM
    • 11,718 Posts
    • 7,937 Thanks
    Voyager2002
    Another possibility: consider studying in Europe, where tuition fees are minimal or zero. For most people the catch is that if they do this they do not receive a maintenance loan (only available for study in the UK) and so would not have money on which to live while studying. If your daughter has funds for this, the total cost of obtaining her degree will be far less if no tuition fees are payable.
    • Gymbob
    • By Gymbob 29th Nov 17, 2:57 AM
    • 11 Posts
    • 2 Thanks
    Gymbob
    This ^^^ is very apt, does your daughter really need to go to university? It's really only worth it financially for Dentists, Doctors, Engineers, Economists, Lawyers (from a credible institution), STEM subjects & anything from Oxbridge.

    Personal opinion: the VFM on a university education was poor a decade ago when fees were £1.5k, now they're £9k and wages haven't improved in that time.

    While many people say it's not proper debt, I can assure you that it feels like proper debt.

    At best a student's volunteering to pay an extra level of tax which you could avoid by starting work at 18, or even giving her a fraction of the £27k to go travelling for a year.
    Originally posted by adamh87
    Agreed.. plan 2 is ridiculous. I've paid this year to do an MSc (yes £10,000 ) as I didn't want a further percentage taken off any salary... beknown to a fair few people I feel like I should also point this out. A post graduate loan is not just added to your undergrad loan. You are once again charged interest whilst in university at the full rate, then once you start work you are charged a further 6% on any salary over £21,000... therefore you are now charged 15% of anything you earn over £21,000 as oppose to 9.. ... plus the usual NI (12%), tax.. pension etc.. it really makes you wonder if this so called 'trying to do well in life' is worth it, they might as well take my blood too..
    • marcusjr
    • By marcusjr 29th Nov 17, 4:30 AM
    • 4 Posts
    • 8 Thanks
    marcusjr
    Be wary of expecting to earn highly as a lawyer..Legal Aid cuts mean a lowish salary is highly possible for a long while. Private client is highly paid though.
    Last edited by marcusjr; 29-11-2017 at 4:34 AM. Reason: Changed structure
    • adamh87
    • By adamh87 29th Nov 17, 7:34 AM
    • 40 Posts
    • 7 Thanks
    adamh87
    Voyager: yes abroad is a potentially good solution, there's an English language university in the Netherlands and many European countries provide very generous social security arrangements for students.

    Gymbob: congratulations, good luck hope you enjoy it. I've thought about returning to study but have a sense of 'once bitten twice shy' in terms of how worthwhile it is. The Plan 2 thing is ridiculous! When I looked into how the plans 'work' together it was completely off putting.

    Marcusjr: yeah totally, a family member studied law and now works in a gym so I know not everyone makes a mint from law! That said someone I graduated with works for a big bank so I expect she's doing OK...
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