Loans vs. Savings - financing studies

TheMouseyOne

Hiya,

I've been studying with the Open University for the past four years, since it was home learning I've worked the entire time and managed to save a pretty decent amount. In October I'm hoping to go back to University full-time to pursue a MA degree, I'm now at a dilemna about how to finance my studies.

Originally I was going to use my savings, there's enough in there to cover the degree and I'll still have some left over. But now I'm starting to wonder if I should shop around for a loan, although I'll be paying more back in the long run at least my savings won't take a knock-on effect. I'm leaving my full-time job but I'm determined to get a part-time job as I still have monthly commitments to pay.

I was just hoping someone could maybe offer a bit of advice on whether I should stick to my original plan or if a loan is a sensible option? I know the ins and outs of loans/banks as I unfortunately work for one and normally I would never consider any kind of borrowing. I've always been very much for if you can't afford something then save, but now I'm thinking do I really want to demolish my savings when I've worked so hard to get them where they are and potentially set myself back a few years financially.

:eek:

Thank you!
x

mucgoo

Presumably your not eligible for the government loan. If you are use that as its got far better terms than commercial loans. Otherwise use your savings. How is it even a question. The entire purpose of savings is to avoid taking on debt when you want to make a large purchase. The interest on a loan will be much higher than any saving returns.