PGCE tuition fees - Student Loan or savings ?

Hothouse

Hi, As I had very lucrative holiday employment and lived with friends I was fortunate to be able to complete my first degree without touching my student loan which I did however claim and is now at approx £13500 sitting in Isas returning around 3.2% average.

I am now starting a PGCE in September and have to pay £3250 in fees. I can borrow this as an additional student loan. Should I do this or just pay it from the "savings" I have from the earlier student loan??

Fiddlestick

Hothouse wrote: »

Hi, As I had very lucrative holiday employment and lived with friends I was fortunate to be able to complete my first degree without touching my student loan which I did however claim and is now at approx £13500 sitting in Isas returning around 3.2% average.

I am now starting a PGCE in September and have to pay £3250 in fees. I can borrow this as an additional student loan. Should I do this or just pay it from the "savings" I have from the earlier student loan??

What APR is the student loan being offered at?

Hothouse

Fiddlestick wrote: »

What APR is the student loan being offered at?

Thanks for your interest
Its variable linked to RPI and fixed for the "Student" year. At present its zero but is due to rise to 4.4% in September this year. This rate applies to the whole loan including that I have at present got stashed in ISAS. It is because the rate will rise to more than I get in the ISAS that I posed this question. Alternatively should I look at it being a £16750 loan with a low interest rate and a long repayment period?

CLAPTON

Hothouse wrote: »

Thanks for your interest
Its variable linked to RPI and fixed for the "Student" year. At present its zero but is due to rise to 4.4% in September this year. This rate applies to the whole loan including that I have at present got stashed in ISAS. It is because the rate will rise to more than I get in the ISAS that I posed this question. Alternatively should I look at it being a £16750 loan with a low interest rate and a long repayment period?

the interest rate on student loans is the april RPI figure or tha bank rate plus 1% which ever is lower

Hothouse

CLAPTON wrote: »

the interest rate on student loans is the april RPI figure or tha bank rate plus 1% which ever is lower

Thanks I thought it was RPI only but on searching further it seems your right so it will only be 1.5% - phew!

But still not sure whether to take out the new loan? My inclination now is to answer myself as yes, but would appreciate comments of others.