Student Loan Interest Rates

FrankieM

Hi,
I've just started a Foundation Course and plan to do a degree in September.
I was going to try to fund it myself but looking at my budget, I don't think I'm going to manage it.
I've just given Student Finance a ring and the interest rate is currently 0%...does anyone have a crystal ball or an idea what that may change to after 31st August?

I'm trying to figure out whether it's worth going down the Student Finance route from the beginning, financially, rather than find myself short and get stuck having to find finance some other way?

Poolie

The interest rate in set from September 2010 will be based on the RPI Inflation figure for March 2010 which is released in April.

If RPI is positive expect the interest to be the same. If it is negative (which is unlikely to be) then the government may do what they did this year and not set any interest rate. This would mean another year of 0%

Oldernotwiser

FrankieM wrote: »

Hi,
I've just started a Foundation Course and plan to do a degree in September.
I was going to try to fund it myself but looking at my budget, I don't think I'm going to manage it.
I've just given Student Finance a ring and the interest rate is currently 0%...does anyone have a crystal ball or an idea what that may change to after 31st August?

I'm trying to figure out whether it's worth going down the Student Finance route from the beginning, financially, rather than find myself short and get stuck having to find finance some other way?

Are you talking about funding this year or the whole degree? When you say " foundation year". could you please clarify exactly what you mean as there can be a lot of confusion round this term.

FrankieM

The foundation year is a level 0. I then go on to do another 3 years in September. I'm looking at Student Finance for the whole lot.

Lokolo

I don't think you can for level 0, I could be completely wrong. Wait for ONW first. But its the same with the Art Foundation (which has now had it's name changed).

Whats the exact course name? (just I can look it up then)

FrankieM

Yeah, you can with this one. The University says it on it's paperwork and also when I rang Student Finance, they said I could apply online for it. Its a BA HONS Business Studies Lvl 0. I'm then going on to do a degree in Accounting.

melancholly

given that you won't have to pay back the loan until you are earning, and that the interest rate will remain at the level of inflation, it's almost always the best option available for funding a degree.

toxic1990

Student Loan is the best option for most people. The Interest rate is the best you will ever get, and paying it back is next to nothing also.

Oldernotwiser

FrankieM wrote: »

Hi,
I've just started a Foundation Course and plan to do a degree in September.
I was going to try to fund it myself but looking at my budget, I don't think I'm going to manage it.
I've just given Student Finance a ring and the interest rate is currently 0%...does anyone have a crystal ball or an idea what that may change to after 31st August?

I'm trying to figure out whether it's worth going down the Student Finance route from the beginning, financially, rather than find myself short and get stuck having to find finance some other way?

Thanks for explaining your situation.

Why would you be thinking of paying thousands out of your own money when you have access to the student funding system?

FrankieM

I'm not entitled to any grants, just loans and not having been a student before, I was just going down the 'no extra debt' route.
Having read what people have written in response, I'm going to go ahead and apply for what I can, which seems to be my fees and £3500. I guess I can get a student bank account too with an overdraft.

Masomnia

The latest RPI figure was 2.4%, so I doubt it'll be too far away from that in March, and so the rate from August.

That's still less than you'll get in an ISA.

It's not just the rate that's important, but you'll have the money on hand in case something goes wrong. If you don't spend it, graduate it and start earning, you can always pay the loan off faster if you want to, or if you find the rate isn't as good anymore. In fact you can probably pay it off any time, so you may as well take it while the rates are lower.