Getting a student loan for putting in ISA?

-rainbow-

Hello,

I'm due to start univeristy in September 2006 and am in a good postion where I don't actually need to take out a student loan (maintenance).

I was wondering, is it possible to take out a student loan anyway then stash it away in and ISA...and finally pay it back as soon as the three-year degree programme finishes?

The interest generated in the ISA over the years would be a great help but am not sure if it's such a good idea?

melancholly

these threads should cover all possible outcomes (i can't do the maths myself by luckily there are lots of helpful money savers who can!) - essentially, you can make some money, but generally it's a lot less than people think.
http://forums.moneysavingexpert.com/showthread.html?t=38341&highlight=loan+savings
http://forums.moneysavingexpert.com/showthread.html?t=185964

talksalot81

melancholly wrote:

these threads should cover all possible outcomes (i can't do the maths myself by luckily there are lots of helpful money savers who can!) - essentially, you can make some money, but generally it's a lot less than people think.
http://forums.moneysavingexpert.com/showthread.html?t=38341&highlight=loan+savings
http://forums.moneysavingexpert.com/showthread.html?t=185964

There is another benefit of doing it.... you actually have money in your bank account. I am currently approaching house buying time and would have had potentially £9k more to put into a deposit had I taken loan out all 3 years. That £9k would really help in getting me towards a realistic mortgage payment! (yes I know Id still have to pay part of the loan back as I went along, but what I have discovered so far is that you are better having money which needs paid back than having none with no repayment needed - that is mortgages for you )