get loan or use savings? advice please

love_lifer

hello
i am going to college in septmeber as a mature student. i have applied for a loan for my living costs but im now wondering if i should use my savings instead??? i intend to get bits of work also to support myself and a lodger.
any help making this decision would be gratefully received
thanks

student_advisor

I generally advise students to take out as much as you are entitled to. It's as cheap borrowing as you're ever going to get. Student life is difficult enough without having to worry about finances too.

Keep your savings well-invested and you should be better off overall.

You may be entitled to a grant as well as a loan and with the repayment system as it is, you might never pay it all back!

Alfrescodave

If your savings are in an ISA account earning ~6% tax free and student loan repayment is 3% (?). its a no-brainer. Cheap as chips borrowing

Gingernutmeg

I used my savings but I really wish I'd taken out the loan - even if I'd done nothing with it I could have earned some interest. However, you generally only learn these things too late lol.

love_lifer

thanks for all your thoughts on this. i will go ahead with the loan and see how i get on this first year.

CLAPTON

for the period sept 2007 to aug 2008 the interest rate charged on a student loan is expected to be 4.8%. (i.e. the RPI figure for March 2007).