student debt

Bubblybev_2

My son has just started university this year and has been lucky enough to get a student grant. He was also entitled to a student loan but declined this as he felt it would have been illegal to take it and earn interest on it!

Does any one know if it is legal to do this or did he make the right decision in declining it

MarzipanFish

It's perfectly legal.

Mankysteve

How can he afford to go to uni without a loan? My understanding is that its biased on income if you can afford to send him to uni surely he's not entitled to a grant.

Lokolo

Mankysteve wrote: »

How can he afford to go to uni without a loan? My understanding is that its biased on income if you can afford to send him to uni surely he's not entitled to a grant.

My parents cannot afford to pay for everything but my grandparents can.
Plus divrced parents, live with mum who is WAH whilst dad gets lots of money but no longer lives with mum but still gives money to son/daughter.

etc.etc.

Plus uni is not as expensive as people keep saying it is, if you budget properly and get a decent partime job.

glider3560

Bubblybev wrote: »

My son has just started university this year and has been lucky enough to get a student grant. He was also entitled to a student loan but declined this as he felt it would have been illegal to take it and earn interest on it!

Does any one know if it is legal to do this or did he make the right decision in declining it

Once the money has been paid to you, you can do whatever you want with it - whether you spend it on alcohol or stick it in a savings account.

minerva_windsong

Perfectly legal not to take the loan - the only difference between the loan and the grant is that you will have to pay the loan back, whereas I believe if you are entitled to a grant you don't have to pay any of that back.

Masomnia

Perfectly legal, and financially sensible! What if he gets into financial difficulties? If he takes the loan he'll have it sitting in an account if he needs, he may get stuck without it.

A good number of people will spend it all on drink and/or drugs, I know which is more morally questionable!

surfsister

yes good he made his own mind up too!

my_definition

it depends on the type of person you are whether he should take the loan or not. Ive got one and saved it and now pay mortgage with it but my sister isnt good with money and since she can survive without it thinks its better not to have the temptation to spend it on rubbish. Apart from the interest your son could save it and buy a car ect on graduation so he could drive to work? the money can be useful when you graduate

i would point out that a lot of students survive without loans and i know lots of students who would argue that parental income makes little difference. Many of us have part time jobs and can survive on burserys. Unis expensive but were not used to a lot of money anyway.