19yr old with student loan to invest

bmwboi99

hi

im currently a uni student and have a part time job which covers expenses, save for accomodation fees which come out of student loan, leaving me with about £500-600 every 3 months to invest

(I already have an emergency fund and plenty of cash isa savings, so am free to invest all of this student loan money)

I have an HL s&S isa however I am completely lost as to which Is the most suitable fund/stock for me

any help is greatly appreciated !:)

lkmc01

Get one of these

http://www.nationwide.co.uk/current_account/flexdirect/default.htm

On the first of the month pay in £1000 from your free student overdraft and at the end of the month move it back out to your student account. Do this every month plus keep any savings in the account and you get 5% gross. Use the R85 form if you are not paying tax from your part time job http://www.hmrc.gov.uk/forms/r85.pdf

I lived off my partners wage whilst at Uni and we saved my student loan. We saved 23k towards a house deposit this way.

poolforever

Have you thought about how you are going to pay off your student loan?

Just save what you can in any account - saving rates are crap.

atush

Are you on the new loans at 6%+? You probably are if you are starting this year or started last? If so, and you don't need the money, don't take it.

bmwboi99

@atush i started last year so as far as im aware i am on the 1% interest but i will look into this

atush

Please do, I thought those who started last year are on the 6% plus, and if not are on the 3% ones.

atypical

atush wrote: »

Please do, I thought those who started last year are on the 6% plus, and if not are on the 3% ones.

The 1998-2012 loans interest rate is 1.5%. The relevant RPI increase was 3.6%, but there's a cap of base rate + 1%.

Pre-1998 loans are at 3.6%. Post-2012 loans are at 6.6%.

cashbackproblems

I invested most my student loan in shares and all i can advise is stick to ftse 100 companies or funds (via Hargreeves Landsdown), as I invested in a few oil companies which lost me a few k's but overall the safer stocks have broken my portfolio even.

bigadaj

cashbackproblems wrote: »

I invested most my student loan in shares and all i can advise is stick to ftse 100 companies or funds (via Hargreeves Landsdown), as I invested in a few oil companies which lost me a few k's but overall the safer stocks have broken my portfolio even.

I don't think you really, mean advise, as you aren't regulated for that. Equity investments are also very risky for short term sums, so wouldn't be recommended in the avast majority of instances, unless you really like a punt.

bmwboi99

hi thanks for the replys

sorry im still confused, i started my course in sept 2012 so does that mean my interest is 3.6% i thought it was about 1.5% also some of this is in the form of a grant therefore not repayable

@cashbackproblems do you have any particular funds which it may be worth taking a look at ? thanks !

jem16

bmwboi99 wrote: »

hi thanks for the replys

sorry im still confused, i started my course in sept 2012 so does that mean my interest is 3.6% i thought it was about 1.5% also some of this is in the form of a grant therefore not repayable

September 2012 - interest rate is 6.6%.

http://www.moneysavingexpert.com/news/loans/2012/04/student-loan-interest-could-fall-for-hundreds-of-thousands

@cashbackproblems do you have any particular funds which it may be worth taking a look at ? thanks !

You really shouldn't be looking at using funds for a timespan less than 5 years and ideally 10 years if paying monthly.

On an interest rate of 6.6% you would be very foolish to do this. Don't take the loan if you don't need it.