Student finance

Snowdonlily

Hello......I'm sorry if this is a silly question, but can anyone please tell me what the difference is between a Career Development Loan and a Graduate Loan?

My son will be graduating this year and plans to stay on for another year and hopefully gain an Msc. I know he'll have to pay his own tuition for the extra year (we can just about manage to help him with this), but if he isn't eligible for the maintenance loan, he'll need to find a way to finance his day to day living expenses (rent, books etc).

I've tried phoning Barclays' helpline......but didn't get much sense out of them.......hope someone can help.

Thanks in advance

Tixy

I came across this page the other day - so not sure if it will help you or not -
http://www.direct.gov.uk/en/EducationAndLearning/AdultLearning/FinancialHelpForAdultLearners/CareerDevelopmentLoans/DG_10033237
looks like he could use it for most of the items listed.

As I understand with a CDL the interest is actually paid by the lSC during the study time. I think a graduate loan just have preferential rates with the bank and are designed to help with the transition to work.

Snowdonlily

Thank you Tixy, I'll check that out, I thought it would be a good idea to find out what all the options are.........then I'll know what he's on about.

Having got myself into a pickle with money (sorting it out now tho') I don't want him going down the same route!

CLAPTON

usually a CDL means there are no repayments for 1st year and the interest for that year is paid by taxpayers

a graduate loan is simply a marketing name for a ordinary loan

Snowdonlily

Thank you Clapton......so calling it a graduate loan is just a ploy to get you hooked! I don't really like the idea of him getting bogged down by yet another loan, but if he's determined to get his Msc, he's got no other option.

CLAPTON

Snowdonlily wrote: »

Thank you Clapton......so calling it a graduate loan is just a ploy to get you hooked! I don't really like the idea of him getting bogged down by yet another loan, but if he's determined to get his Msc, he's got no other option.

well, that's not how I would put it, but the point is that a graduate loan needs to start repayments in the usual way (i.e. immediately) whereas CDL payments are deferred.
The loan may well be at a good rate