Saving Student Loan

swstudent

Hi All. I'm so sorry if this has been asked before and I wasn't sure whether to put this thread in the savings forum or student forum but nevermind!

I'm just starting university and have been working out all my finances etc. I'm living at home so I don't need much of my student loan and I get a £4575 bursary for being a social work student also. I'm not sure of the exact amount I'll have to save as yet, however I was wondering what I should do with the money I'm trying to save. Any suggestions? It won't be a lot of savings in the first year as I need a new car but hopefully I can work over the summer etc.

Thanks!!

Lokolo

Assuming you won't be earning over £6475 from our job your best bet is:

http://new.egg.com/visitor/0,,3_11093--View_401,00.html

For the time being.

If you are planning on keeping your money for after university when you have a job you may want to consider an ISA.

swstudent

Thankyou for your help! I am thinking of putting some money away for after university - would love to have saved around £10,000 by graduation for help with moving out & perhaps a bit of travelling here and there! I see you are doing very well in your saving well done!

swstudent

Lokolo wrote: »

Assuming you won't be earning over £6475 from our job your best bet is:

For the time being.

If you are planning on keeping your money for after university when you have a job you may want to consider an ISA.

Sorry to bother you Lokolo, what is the best savings account after Egg? Just wondered...

Thanks!

atypical

ING Direct offers 3.2% or Alliance & Leicester at 3.15%. I'd go for Alliance & Leicester as you'll get £20 cashback (£15 if your first use of Quidco) via Quidco but do maths to see what works out best for you. If you're not clued up on cashback there's a guide here.

A comparison site like Money Facts lets you compare the best rates available.

If you don't pay tax (earn under £6,475 a year) don't forget to fill in an R85 form for gross interest.

swstudent

Thank you atypical that's really helpful, I didn't think about comparison sites! I'll have a look tomorrow morning when I'm more alert!

bendix

Let me get this right? You're looking for advice on how to save your student loan?

Wouldn't it be simpler simply to not take the loan if you don't need it, or need it all?

Masomnia

bendix wrote: »

Let me get this right? You're looking for advice on how to save your student loan?

Wouldn't it be simpler simply to not take the loan if you don't need it, or need it all?

To be fair it's hard to know what you'll need when, so it wouldn't be wise not to take it, especially given the low interest rates.

chewmylegoff

bendix wrote: »

Let me get this right? You're looking for advice on how to save your student loan?

Wouldn't it be simpler simply to not take the loan if you don't need it, or need it all?

currently the interest rate on student loans is 0%, so if you can be bothered you can draw down any loan that you don't need and stick it in a bank account and make money.

swstudent

bendix wrote: »

Let me get this right? You're looking for advice on how to save your student loan?

Wouldn't it be simpler simply to not take the loan if you don't need it, or need it all?

Well the majority of the money I receive is grants which I don't have to pay back but I still need the tuition fee loan. I've taken the money and decided to stash most of it away - student loans are now at 0% interest so I'm not getting myself into deeper into debt. Plus for the next 3 years I'm going to have very little income in comparison to what I did before. Although I'm living at home the bills are still rolling in!

bendix

chewmylegoff wrote: »

currently the interest rate on student loans is 0%, so if you can be bothered you can draw down any loan that you don't need and stick it in a bank account and make money.

Good grief. What a world we live in.

Not sure I like the idea generally though - is there not a fear that it inculcates the idea of loans and credit into people too early?

I guess I'm just old-fashioned.