Full time worker & part-time student dilemma

it02s28

Hi all,

I am one of the lucky (or unlucky) few that is employed working a 40 hour week whilst studying via distance learning (part time) a 4 year BSc course which commenced Dec 2012.

My employer pays for my tuition fees whilst I work for them and thus, I am payed the National Minimum Wage.

Unfortunately, I have very little savings but aspire (as many do at 22) to move out of home or be in a position to move out of home over the course of the next 5 years.

I have only recently discovered that I am eligible (subject to submitting an application form) for a Student Finance loan of the entire sum of my tuition fees, approximately £10,000.

The Dilemma

Option 1: Carry on as I am, earning NMW with very little hope of saving enough money for a deposit but with the benefit of having no tuition fee debt?

Option 2: Or do I ask my employer to pay NMW + tuition fee contribution as a salary and I save approx £9,000 (after tax) after I've finished my course. My tuition fee would be paid for by Student Finance but I would be left with a debt of £10,000 + interest of (RPI + 2%) and I would pay 9% of what I earn in excess of £21,000, before tax. (more info mse.me/students2013)

Any thoughts!? oh, and I've got until August to apply to Student Finance if the consensus is option 2!

Thanks in advance

Lokolo

Where have you discovered that you are entitled to a tuition fee grant?

it02s28

I spoke with Student Finance twice - they asked me a series of eligibility questions of which they confirmed I qualify subject to submitting application form... PL1 I think.

Lokolo

Sorry I have now re-read. You aren't getting a grant. You are getting a loan. There is a massive difference (and you stated in your OP that you are getting a grant).

Personally I would go with Option 1. I doubt your employer would be happy if you asked for a £9k raise instead of them paying tuition fees.

it02s28

Thanks for your views. I have amended my post for accuracy.

Out of interest, if my employer was prepared to increase my wage (that I've been on since I started 3 years ago), would you still go with option 1?

Lokolo

If they were happy to then I would personally take the loan with option 2. As long as you save the money.

That is what I did but the interest rates for me are much more favourible.

it02s28

Yeah it all boils down to whether my employer is willing to cooperate I guess.

Anyone else out there willing to share their opinion?

Fluff15

I would still go for option one. Overall, you're still in a better position than most students who fund their own education and living expenses - I got the full grants and loans when I was at university, plus a part time job and my income still totalled out at a measly £6000 for the year.

I'd rather be debt free and earning less until I finish university, than now having this massive £20,000 sitting over my head. I know it doesn't affect me in anyway, but I'd still much prefer not to have it! Plus, although I understand why option two will make you better off, I think personally it would leave a sour taste in the mouth of your employer. I think your employer is doing you a massive favour, and if you've been there three years your in a good position to ask for a raise anyway. Have you ever asked for a raise? I imagine as your studying, you've probably taken on more responsibilities as your knowledge has grown?

Out of curiosity, what job do you do and what are you studying?

it02s28

Hi,

Very sorry for the delay!

Thanks for you thoughts. I'm a Trainee Chartered Surveyor and I'm studying Estate Management via University of Reading/College of Estate Management.

Unfortunately my UCAS points fell marginally short to go straight onto the degree course straight away so I had to undertake a 2 year diploma in Surveying Practice via UOR/CEM first and after successfully passing that then allowed me to get onto the 4 year distance learning degree course.

So frustrating that I'm 22, studied/worked full time for the last 3 years and now have another 3 years to go before hopefully being awarded a degree, whilst the majority of my old school friends are well placed in graduate programmes or alike! albeit ridden with debt.

My employer and I had a brief chat about the prospects of a pay rise but a lot of what we do as a company is negotiating and I found it hard to come back with something when they said they were suprised at the massive jump in course fees from when they last sponsored an employee and that "many people my age are out of employment".

It is frustrating to say the least when 3 years on, I have equipped myself with substantially more expertise, knowledge and a diploma than when I first started but yet there is no financial recognition.

lordra

Welcome to the club. Just completed my Masters, have a student loan to pay back and stuck at NWM with Leisure Connection for the last 3 years. Its shocking, I've been job hunting for the last year now. Graduated last year. I'd go with the less money, no debt option. Stay at home, nothing wrong with that. Build your credit score, save money to put down for a deposit, and when you finish your studies, you'll have a job and a deposit for your new home (Hopefully)