Scrimping for postgraduate study

sc1ence

Hi,

I have offers to study for masters programs at Imperial, Oxford and Cambridge. However, it is unlikely I will be able to afford to go.

I am trying to save desperately. I earn about £35,000, but have to save up to £20,000 in 4 months. I am trying to explore several options to help me bolster the amount I can save. I have already applied for an ISA and looked at NS&I accounts.

Is anyone an accountant, and do they know whether there are any methods by which I can pay less tax? If it does not exist, I would have thought that there should be some government scheme that gives tax relief to those who are saving, especially if they are saving towards education.

I know that in using an ISA, you do not get taxed on your interest, but this is not quite the same as tax relief on the money you save.

atypical

I think the only saving schemes that provide tax relief are pensions and SAYE. Neither of which are of any use to you I think.

Annisele

Even if you found a scheme that meant you didn't have to pay any tax at all (which doesn't exist AFAIK), you only earn a bit under £12k in four months - so you're never going to be able to save £20k out of that money.

Can you borrow the money? Career development loans are relatively easy to come by. Alternatively, can you defer your place for a year?

sc1ence

Thanks for all your comments. I have already deferred once. I realise that I will not be able to save up all of the money. In reality £20,000 is the upper limit. I may need as little as £16,000 and I will almost certainly have to consider a Career Development Loan. Although, I applied last time and was turned down. I did not have good enough credit history/ too much student debt. I am looking for ways to make as much headway as possible. I have applied for a cash ISA, but would be really grateful if anyone could advise me on how to get either an investment ISA or an NS&I investment account and what types will give the maximum returns. If possible one with as little risk as possible (so NS&I preferably) would be good. I think which ever account I get, one that tracks the base rate will be best.

sc1ence

Could I pay into a pension and then cash it under some crazy circumstance?

Idiophreak

Have you approached the PG depts of the unis in question and asked about funding, bursaries etc?

Reaper

sc1ence wrote: »

Could I pay into a pension and then cash it under some crazy circumstance?

No.

One thing that will help a little is that you will be overpaying tax at the moment because your employer will be deducting tax on the basis you will be earning for the whole year, which you won't. So you won't have had your tax allowances allocated properly. You will be able to claim the tax back at the end of the year. We are not talking a large amount, but every bit helps.

gmgmgm

If you are confident the Master's course will increase your future earnings, then take out a loan for what you need.

If you aren't confident, then this presumably is simply because you think you'd enjoy the course but don't place any financial value upon what you would learn?

Toby1990

Thats what I would think, if you was to get say a 5k increase in your salary then that's 4 years to pay off that current debt if you was to live off your current wage still, well bit longer with tax. Which would be worth it, but I'd think harder if there wasn't a guarantee that you would get a pay rise and get 20k more into debt.

kidmugsy

Oxbridge colleges tend to be pretty good at trying to look after their own. Once you're in, if you find finances tight go and discuss matters with your tutor/dean.

cashbackproblems

Are you looking at investment products to increase ur money over the few months?? It doesnt work like that!!

Unless you invest it on a AIM oil company it might increase 50-100% in a few months but then you might lose it all.

HAve alot have burseries as mentioned, but will it really help you get a new job? Will your current employers sponsor you/give unpaid time off to study it?