Does it make financial sense to accept Student Loan and Grant even if not necessary?

Mother_soontobe_Teacher

Ladyshopper wrote: »

I did exactly what you did, took out full loan/grant last year and paid it off my mortgage. I figured it was a cost effective use of money and will help me get my mortgage paid off much quicker.

I do earn over £21k, but not by thousands, so when I start repaying next year it will be a minimal amount. Due to health reasons there is a chance in the not too distant future I might end up going under the £21k threshold, so again, for me it made sense to pay off the mortgage, as thats by far the largest bill in the household.

Thank you for your reply, you seemed to have been in the same situation as me. I have just found out that I could, just take the grant if I wanted. I will need to decide within the next few days!!

Indie_Kid

Mother_soontobe_Teacher wrote: »

So, do you guys know if I would be able to accept the full grant but not the loan?


Thank you

Should be able to. There's a box on the form which asks you how much loan you want. You just put 0 in the box.

CKhalvashi

Mother_soontobe_Teacher wrote: »

Thank you for your reply, you seemed to have been in the same situation as me. I have just found out that I could, just take the grant if I wanted. I will need to decide within the next few days!!

Unless the mortgage is over 4%, there's not much use in this, either.

It largely depends on your circumstances, which when the base rate changes, so will probably the circumstances on the loan. Which way, I don't know yet.

CK

Mother_soontobe_Teacher

CKhalvashi wrote: »

Unless the mortgage is over 4%, there's not much use in this, either.

It largely depends on your circumstances, which when the base rate changes, so will probably the circumstances on the loan. Which way, I don't know yet.

CK

Very Confusing huh? Be asked to like, think so much into the future is not easy. the truth is both the grant and loan will go straight into my savings for 2-3 years until we are ready to move into a larger house and therefore, require a larger mortgage.

Ladyshopper

Ed-1 wrote: »

When did you start and finish your course?

Started sep 2013, finished May 2014 (direct access onto 3rd year of degree due to job).

Got a first.

Ed-1

Ladyshopper wrote: »

Started sep 2013, finished May 2014 (direct access onto 3rd year of degree due to job).

Got a first.

Well done. :beer:

Just wanted to check as your loan repayments won't start until 6 April 2016 (providing you're earning over £21000) as the new repayment system is still to get going. Ordinarily your loan would enter repayment in the April after you finish.

DannyWhoWorks

I was in the same situation! I decided just to go for it. An extra 4k in my bank account was too tempting! Even though I don't need it at the moment - who knows what tomorrow will bring and if or when I start paying it back - I'll just be bloody happy that I am earning that much!

Ladyshopper

Ed-1 wrote: »

Well done. :beer:

Just wanted to check as your loan repayments won't start until 6 April 2016 (providing you're earning over £21000) as the new repayment system is still to get going. Ordinarily your loan would enter repayment in the April after you finish.

Oh, bonus, thanks for that!

Mother_soontobe_Teacher

DannyWhoWorks wrote: »

I was in the same situation! I decided just to go for it. An extra 4k in my bank account was too tempting! Even though I don't need it at the moment - who knows what tomorrow will bring and if or when I start paying it back - I'll just be bloody happy that I am earning that much!

Thanks Lovely!

sarahlouisexo

Just to clarify you are more than able to just accept the grant - it's what I did! Also have a look into what extra money your Uni will give you in terms of bursaries and stuff, these aren't repayable so essentially free money.