Saving Maintenance loans

life_nit

i have found out i can get the maximum loans available to me due to having parents on low income.

I'm in a position where i can fund myself through working whilst at university. About to start my 2nd year at uni. Did not take out any loans in my 1st year.

Is it worth me applying for the £4,950 available to me and saving it?
I could easily net £150 profit in a year through saving it aside. im just wondering if it's worth doing? or if anyone has done/thinking of doing the same?

im Not 100% sure on how the increase in 1.5% will effect me entirely. have not had time to read up on it just yet, but i will get around to it asap.

Is this a good idea? And ultimately profitable?

Thanks

atypical

life_nit wrote: »

Is it worth me applying for the £4,950 available to me and saving it?

Yes!

life_nit wrote: »

im Not 100% sure on how the increase in 1.5% will effect me entirely.

It will effect you in that if your saving rate is 2.8% you have to minus 1.5% to get your 'profit' rate of 1.3%. If the base rate rises the student loan interest rate will also rise up to 4.4%.

Normally when the base rate rises saving interest rates will increase with it. It is possible that they won't though, in which case you may not 'profit'. But even if that's so, it's the cheapest loan you'll ever get - if it saves you taking a loan at commercial rates in the future then it's more than paid for itself.

lucylollipop

Definitely take it - aside from the fact that you may end up needing it later, putting it into a savings account and profiting on it is a great idea. Also, if you're only in your second year, then what you're actually looking at is £4950 this year, and then a similar value next year, when you do your 3rd year - so a saved total of £4950 this year and then, if it's the same, nearly £10,000 in savings by the end of your final year - a brilliant position to be in at the end of a degree! I'd do it!

life_nit

Thanks both of you. Will definitely be taking them up on this then thanks to your help.

sometimes it's hard to see the advantages without asking for peoples advice. i appreciate it immensely.

Regards.