DMP and taking out a student loan...

Forgetmenot68

I'm slightly afraid of asking this question because I think I know the answer.

I really want to do a PGCE but have been on a DMP for four and a half years now and don't know whether I'll be allowed to take out a loan for the fees. I can't otherwise do it. I've really been trying to get work and have been doing bits and pieces including some paid cover teaching connected with my voluntary work, but that's finished now. Because of my circumstances and the subject I would apply to teach I can get a bursary, but it won't pay the fees. I'm with CCCS/Stepchange.

Does anyone know? Thanks so much for your answers.

nomunnofun

Well I do not know what answer you were expecting but student loans are NOT subject to a credit check -they are based on need not credit worthiness. But if this was a personal loan to pay for the course - substantially different kettle of fish.

Forgetmenot68

Thanks nomunnofun. I was more worried about my creditors and DMP organisers not wanting me to take on more debt, though?

nicp60

Hi Forgetmenot,

I don't think there's a problem at all with that. Loans for tuition fees etc are nothing like normal loans. If you're talking about a Student Loan (ie from the SLC and nowhere else), then you wouldn't be paying it back until you're earning above the threshold (currently £21k), and even then it's taken out of your pre-tax salary directly.

Student Loans are not normal debt, although if I were a creditor I would question how you plan to be able to meet your obligations during the PGCE course. I've done one - believe me, you won't be able to work part-time during it!

Your creditors and stepchange shouldn't bother too much about you 'taking on more debt', as this isn't a bank loan etc. I think they'll b more concerned with any impact this would have on your income.
HTH

Forgetmenot68

Thank you for your reply nicp60. I've been working part time over the past year and my income has not even been half what I would be able to apply for in terms of a bursary. There would be some childcare and travel on top, or course. OK, well perhaps I should speak to Stepchange. I'm just worried they will forbid me to do it.

gizmo111

Forgetmenot68 wrote: »

Thank you for your reply nicp60. I've been working part time over the past year and my income has not even been half what I would be able to apply for in terms of a bursary. There would be some childcare and travel on top, or course. OK, well perhaps I should speak to Stepchange. I'm just worried they will forbid me to do it.

SC cannotforbid you to do anything - it may during the time you are training you will have a lot less to pay creditors and it may make sense to self manage your DMP, but when you are earning you will be able to clear the debt quicker.

Go for it - and good luck getting on the course.

Forgetmenot68

Thank you so much gizmo!

nicp60

Forgetmenot - I wouldn't go to Stepchange asking for 'permission to take out a loan for studies' or anything like that. I would apply for the PGCE, get accepted (fingers crossed), and then reassess your finances in your next review or sooner.
Best of luck - definitely go for it; the earning power and job security that you'll have after the PGCE is definitely worth it. Oh, and it's a very worthwhile job too!

gizmo111

Forgetmenot68 wrote: »

Thank you so much gizmo!

You are welcome - dont let the debt rule your life, I know I made the decision to re train a few years later than I would have because of being scared of managing the debt, and lost out on an extra £10K per annum in salary and promotion prospects etc for around 5 years:eek:

Forgetmenot68

nicp60 wrote: »

Forgetmenot - I wouldn't go to Stepchange asking for 'permission to take out a loan for studies' or anything like that. I would apply for the PGCE, get accepted (fingers crossed), and then reassess your finances in your next review or sooner.
Best of luck - definitely go for it; the earning power and job security that you'll have after the PGCE is definitely worth it. Oh, and it's a very worthwhile job too!

That's brilliant to hear, thank you! And good advice, too...

Forgetmenot68

gizmo111 wrote: »

You are welcome - dont let the debt rule your life, I know I made the decision to re train a few years later than I would have because of being scared of managing the debt, and lost out on an extra £10K per annum in salary and promotion prospects etc for around 5 years:eek:

That's a very good point, thank you Gizmo.