i have a student loan. But i want another, is it possible?

il638

Hi everyone, ive been on this forum a while, just reading, but thought i would register and ask a few questions.

im on my third year at uni on placement. i have had a student loan and grant every year at uni, to fund living costs etc.

anyway now half way through placement year eevrything is going well! and i'll have around 4k savings after this year is up.

im going onto my final year in septemeber and have applied for a student loan and grant, oviously to cover living at uni etc.

anyway im wanting to get a car for graduation or ideally before so it makes travel easier and the look for a part time job easier.. when i get back..

can i get another loan for £5k? over say a year (or 2 if a year isnt possible)? bearing in mind the 4k savings will cover it.. i just dont want to fork out cash just in case something comes up during the uni year.. rather pay in installments..?

also will this loan if i get it .. affect my loan and grant entitlement for final year?

and also am i correct in thinking student loans are not recorded against ur credit history?

thats the only debt i have, so i assume my credit rating should be good, wel it should be lol was fine when i rented this house for the placement year.

ur help is appreciated

many thanks

Lokolo

Um. So you're wanting £5k loan + £4k savings to buy a car, so £9k? For graduate use to find a job?

All in all, a very bad idea.

- Loans usually are only given out to those who have income, if they see you're a student theres no chance, especially in this economic climate
- If you do get a loan you will have to pay it back from the day you get it, so that means extra outgoings in your last year, of which your loan for the last year is less than normal
- Do you really need a £9k car? Extra petrol costs, + insurance.

However:

- Student loans aren't recorded on credit history, it for things like - default payments for unpaid bills etc, or good if you pay back credit card bills ontime.
- It will not effect student loan I don't think. (Grants are usually down to taxable income of household, which loans do not count part of)

MoneySavingStudent_2

Hey!
Im a student in my second year
I run a nice little vauxhall corsa. I managed to buy mine via a 0% student overdraft.. I can then pay back my over draft when its suits me. The other way i can do it is take advantage of 0% purchases on credit cards. Obviously you have to think about insurance etc. So i purchased my insurance on a 0% credit card and make sure i pay my insurance off before the 0% is up.

Everything is running ok for me cause im very organised.. Need to make sure things are paid on time etc. But also because my car is 2nd hand.

You need to think about what car u wana get? New? Used? then the insurance, tax, mot etc so its not just about the car.. (which u probs already know)

Im sorry i cant help you more but thats the way im doing it atm I paid my car off fully with my savings last year and atm im only paying my insurance x

il638

sorry i meant a 5k car not 9k car.. just didnt want to spend all my savings at once,, if you get me,

as for overdraft i forgot about that

MoneySavingStudent_2

lol get the best overdraft for u tho! Check out the martins views on it and see how you go. It does go on your credit rating but its 0% and in your 3rd year you could get as much as £1500.. which could help?

Oldernotwiser

il638 wrote: »

sorry i meant a 5k car not 9k car.. just didnt want to spend all my savings at once,, if you get me,

as for overdraft i forgot about that

5K for a car when you're a student! If you must have a car, buy something for less than a grand.

MoneySavingStudent_2

Oldernotwiser wrote: »

5K for a car when you're a student! If you must have a car, buy something for less than a grand.

I agree with that! lol

il638

lol i wanna keep it for a afew years and have a nice one for graduation, feel left out wi all my mates in nice cars.. hmm a civc type r would be nice

Fire_Fox

il638 wrote: »

lol i wanna keep it for a afew years and have a nice one for graduation, feel left out wi all my mates in nice cars.. hmm a civc type r would be nice

Trolling, surely. :rolleyes:

Hutchch0920

Oldernotwiser wrote: »

5K for a car when you're a student! If you must have a car, buy something for less than a grand.

I also completely agree! or maybe 2k max.

Martin tends to advise paying off loans and credit cards before investing savings as you tend to pay more interest on a loan than you recieve on savings = in essense you'd be better off spending some of your savings to buy a car than get a loan.

As Lokolo said you're only likely to get a loan if you've got a job,especially in this economic climate!

Finally unless you have no claims bonus a 5k civic is going to be really expensive to insure! i just did a quick seach for comprehensive insurance with 250quid voluntary excess and was quoted 3grand for a 2002 plate 2litre type R with no claims, located in Manchester. Out of Manc it would be like half the price but still 1.5-2k is loads!

Have a play around on moneysupermarket.com

lauh88

my car was £1,500 (W reg fiesta), and i pay about £700 a year insurance, £120 tax and however much for MOT and any repairs.
I'd say don't spend all your money on a car, it's best to keep some money 'just incase', you never know what might happen!