Career Development Loan - Help

ffeindadifyr

Can somebody please answer this question for me:

If I were to apply and am awarded a CDL this year - and subsequently pay it off at the end of the course - would I be able to take out a second CDL further on for another course?

Also, If there are any moderators reading - would it be possible to start a Sticky thread on CDL's? - as I've found that there are quite a few spread all over the forum - answering spesiphic questions.

fran_from_willesden

You're right that there are lots of threads about CDLs...mainly because they are started sporadically!!

I have a CDL at the moment and to answer your questions, if you take the full CDL amount of £8k, then you won't be able to apply for another loan. If you only take £3k for example, then theoretically you could apply for the remaining £5k.

With regards to your first question, be careful about the choice of course you want the CDL to support you through as if you change your mind, you can't just give the money back to the bank!

ffeindadifyr

If I went on a course and applied for a CDL to pay for the fees and maintanance and subsequently gained a scholarship to pay for these could I not just pay off the CDL straight after finishing the course?

This CDL would be completed and then further on I am offered a place on another course - could I not apply for another full CDL?

fran_from_willesden

You could pay off the CDL straight after you'd finished the course but you would be paying back more then you borrowed (as ever, there are penalties for early repayment - remember the bank loses out on the interest it would have earned while you were paying it back).

However, regardless of whether you paid it back straight away, if you took the whole £8k, you would not be eligible for to apply for another CDL. You can only get them once.

Also, if you're using it to pay for your fees, then the bank who the CDL is with pays the fees direct to the University so you never get your hands on it anyway.

My CDL is with the Co-op bank. Their booklet details this as would the other banks (Barclays and Royal Bank of Scotland)

ffeindadifyr

Strange... Martin doesn't mention a penalty in his article on CDL's!

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1045441846,81288,

He mentions paying off the Loan with another cheaper loan one month after the course - and in his calculations he doesn't take into account any charges that I can see... or am I missing something!

davelewis

fran_from_willesden wrote:

You could pay off the CDL straight after you'd finished the course but you would be paying back more then you borrowed (as ever, there are penalties for early repayment - remember the bank loses out on the interest it would have earned while you were paying it back).


The govenment pays the interest while you are studying - so the bank don't lose out on anything!!!

I am going to do the LPC next year - phoned Barclays and they confirmed about the gov paying the interest while you are studying.

I am in a fortunate position that i have the fees in the bank - but will take a CDL anyway to gain interest and pay the lot off when i finish the LPC. Barclays couldn't condone this - but basically off the record said if i choose to pay the full amount 1 month after i finish my studies, i will not incur any interest - as i say, the gov pay the interest while you are studying.

Hope this helps someone.

fran_from_willesden

davelewis wrote:

fran_from_willesden wrote:

You could pay off the CDL straight after you'd finished the course but you would be paying back more then you borrowed (as ever, there are penalties for early repayment - remember the bank loses out on the interest it would have earned while you were paying it back).


The govenment pays the interest while you are studying - so the bank don't lose out on anything!!!

I am going to do the LPC next year - phoned Barclays and they confirmed about the gov paying the interest while you are studying.

I am in a fortunate position that i have the fees in the bank - but will take a CDL anyway to gain interest and pay the lot off when i finish the LPC. Barclays couldn't condone this - but basically off the record said if i choose to pay the full amount 1 month after i finish my studies, i will not incur any interest - as i say, the gov pay the interest while you are studying.

Hope this helps someone.

If you have the money to pay off the loan a month after you finish...why do you need it in the first place?? I know the govt pays the interest while you study..... with regards to longer term payments there is a penalty for early repayment. It would be nice if everyone could afford to put the whole CDL in an account to 'earn interest'.

davelewis

Fran

Appreciate your comments - but surely any true MSE'r would do the same in my position? As in gaining interest and making best use of my money? Or am i missing the MSE point?!

Confirmed with 2 seperate members of Barclays staff on 2 seperate occasions - there are no penalties or interest to pay if loan is cleared within 1 month of completing course.

ffeindadifyr

I agree Dave - this is in the true spirit of MSE.

Fran -

(1) Many people can't afford to pay the fees/accomodation in one lump sum at the beginning of the Uni year and can maybe muster up enough by the end to pay off the the loan in full.

(2) Wouldn't it make a lot more sense to pay off the loan in full at the end of the course and take out a loan with another company that offers MUCH better interest rates?

Have you read Martins article on CDL's?

jitsuguy

Hi all,

You can only ever have one CDL in your life. If you are halfway through your course and have only used a bit of the 8000 max for maintenance then you may apply for the rest, but I'm not sure how successful you will be.

In regards to your question about paying it off in full, you can usually do this without a penalty although read the Ts and Cs of the bank you decide to go with. If you do decide to fully repay it, might I suggest that you do this at the end of the course as the Govt. pays the interest whilst you are on the course (hence the rates being high). So if the Govt. is paying the interest you might as well whack the money in a savings account and make interest on it!

Hope this helps,
Jitsuguy

fran_from_willesden

ffeindadifyr wrote:

I agree Dave - this is in the true spirit of MSE.

Fran -

(1) Many people can't afford to pay the fees/accomodation in one lump sum at the beginning of the Uni year and can maybe muster up enough by the end to pay off the the loan in full.

(2) Wouldn't it make a lot more sense to pay off the loan in full at the end of the course and take out a loan with another company that offers MUCH better interest rates?

Have you read Martins article on CDL's?

Of course...I have one myself. If you can tell me how I can pay fees, living expenses etc AND manage to muster up enough money to pay off my CDL in one go at the end of the course, please let me know.