Student Finance - Do i take the loan to invest?

cbr600f

Hello,

Im starting a course soon. Im eligable for around 10K in student loans - i dont need them as im using grants to pay course fees.

Should I accept the 10k and put it in my 1.85% account?

Pros and Cons?

Lokolo

Why would you put it in an account earning only 1.85% when you can put it elsewhere and get 3%

http://www.ingdirect.co.uk/savings/variable_rate/

cbr600f

I understand i can get more and would explore that later. (my savings account is at 1.85% read my other posts if you want to know more) Im trying to find out if it would be worth while?

Have the loan for 2 years then pay it off??...

robpw2

Decline the £10,000

this is why the system is wrong , i know people who are having to give up their course because they cannot get enough money to study and live (2nd year) even with a part-time role and then people like you are taing money that you don't need just to invest it ... they should ammend the system to make it fairer to those who need it

Idiophreak

robpw2 wrote: »

taing money that you don't need just to invest it ... they should ammend the system to make it fairer to those who need it

OP's *borrowing* money, not taking it.

As to the OP - Work out exactly how much you'll make from saving this cash - and weigh that against the hassle of dealing with SLC...They can be really hard work and you have to see whether the potential profit's worth the risk.

And it goes without saying that you'd have to be 100% sure that the money would just stay in savings and you wouldn't end up spending it...

Lokolo

cbr600f wrote: »

I understand i can get more and would explore that later. (my savings account is at 1.85% read my other posts if you want to know more) Im trying to find out if it would be worth while?

Have the loan for 2 years then pay it off??...

The rate is 1.5% on Student Loan currently. So if you can earn more than that in a savings account then you make profit.

So yes, you should take it and save it.

robpw2 wrote: »

this is why the system is wrong , i know people who are having to give up their course because they cannot get enough money to study and live (2nd year) even with a part-time role and then people like you are taing money that you don't need just to invest it ... they should ammend the system to make it fairer to those who need it

Completely disagree. I know plenty of friends who "needed" more money, but that was because they overspent on stuff they didn't need.

We all make a choice of where we go to uni, we all get told in advance what money we will be getting so there's not really an excuse to "need more" as the majroity of the time (emergencies aside) we should all be able to budget.

Dunroamin

cbr600f wrote: »

Hello,

Im starting a course soon. Im eligable for around 10K in student loans - i dont need them as im using grants to pay course fees.

Should I accept the 10k and put it in my 1.85% account?

Pros and Cons?

If you're talking about the fee loan, that's paid direct to the university - you don't see it.

Lokolo

I also realise that the OP is on the new 2012 fees, not the old one!!!

So chances are it is not worth it (as its RPI + 3% or something rediculous).

Sorry OP! I read another post similar to yours a couple of days ago and was still thinking about that.

cbr600f

Right so the fee loan isnt available to me. what then about the maintenance loan.

That is 4K+... Is the post about the 1.5% on the loans correct please confirm somebody.

Just a little note that if i wasnt eligable i wouldnt be offered it.

Right so if the the loan is 4k (maintenance) and is charged at 1.5% pa, my account gives 1.85% so the .25% would be £10 pa.
Not worth it. but i i set up and ISA say 3% = £60 pa @ 1.50% (profit)
Still not worth it.

So if somebody can confirm the tuition fee loan cannot be had in hand then i will put this one down as a 'dont bother'

Lokolo

cbr600f wrote: »

Right so the fee loan isnt available to me. what then about the maintenance loan.

That is 4K+... Is the post about the 1.5% on the loans correct please confirm somebody.

Just a little note that if i wasnt eligable i wouldnt be offered it.

Right so if the the loan is 4k (maintenance) and is charged at 1.5% pa, my account gives 1.85% so the .25% would be £10 pa.
Not worth it. but i i set up and ISA say 3% = £60 pa @ 1.50% (profit)
Still not worth it.

So if somebody can confirm the tuition fee loan cannot be had in hand then i will put this one down as a 'dont bother'

See my post just above. The loan is 1.5% before 2012, whereas I realise you are someone who is abotu to attend (and therefore 2012 finance), which is not as nice.

Masomnia

And no, you don't see the money for the course fees.

Just the maintenance loans and grants.