Career development loan repayment terms

Masomnia

Just wanted something confirming.

I'm planning on beginning a Masters in September next year, and will be taking out a CDL to cover most if not all of the cost. I do have some savings, and will be continuing to work throughout the course so should be in a position to pay off a decent chunk at the end.

I looked at both lenders' websites and they both advertise 'fixed repayments' over a set number of years. Obviously if I have some savings now but want to borrow at 0% for a year and pay it off after my course but before I pay any interest then that isn't much good.

So essentially I'm asking if there are any barriers to early repayment of the loan. The terms of these things seem to change quite often!

agrinnall

Just had a look at the Barclays terms and it's pretty clear that the repayment term is fixed at the outset, with a 12 month minimum. I don't believe there is any way you can avoid paying some interest I'm afraid.

Masomnia

Thanks, that's how I read it too. It's at odds with Martin's guide though :eek:

It is a bit wanting to have your cake and eat it, but one department I'm looking at is quite a bit more expensive than the other, so I could end up paying a fair whack in interest

Might actually be worth getting a cheaper personal loan.

TinTin86_2

Hi Masomnia
I have a Barclays CDL that I took out to study for a Masters a couple of years ago.
Just checked my annual statement and there's a big section at the bottom saying 'Settling your credit agreement early' and then says 'You can settle this agreement at any time by giving us notice in writing...'
So I think you'd be fine to pay off a chunk/all of it early if you are able to (wish I was!!)
The 12 month minimum is the shortest amount of time you can have the loan for but this would include the time you are studying when the government covers the interest payments.
Maybe give them a call to check first though...