24+ loan....yes or no???

[Deleted User]

I hope I have posted in the right place....


I am about to embark on a career change as a Teaching Assistant which means I can do a course costing £1412. I have been told I am eligible for a 24+ loan which basically means I can have the course funded and I don't need to pay anything back until I earn over £21k. The career I am taking will not take me over this amount at all, even on a full time basis, it is term time only on a pro-rata basis. I have also been told the loan will be written off after 30 years.


I have been advised there is no credit checking which isn't an issue anyway but I am wondering if this type of loan would appear on my credit file and would I have to declare it if I applied for credit i.e credit card or mortgage with my hubby in the near future when I get a job.


I am trying to weigh up the pro's and con's of having this loan or whether (even though I am never going to earn over the threshold) should pay for it myself (which may be feasible) and not have this hanging over my head, so to speak.


Any advice would be appreciated.

andyfromotley

hi mrs b,

how old are you. Do you ever see yourself doing a different job which will put you above the threshold? etc etc

If you are confident that you won't, then you would be better off taking the loan as you would never pay any of it back. Thats simple.

However if you are young who knows what you will end up doing with your life? Remember 21k is below the average salary so if you change career you are likely to end up paying it back with interest. A senior HLTA would earn enough to pay this back i think.

Obviously this is a personal decision. I am off to uni in sept, i have taken all of the loans as i am confident i will never pay them back. (i'm retired) But like you i don't really have to take them i could pay myself, and if i was going to have a second career i probably would.

Gaz83

To me there's something incredibly immoral about taking a loan from taxpayers that you have no intention of paying back.

barbarawright

MrsBrownBear will be doing a valuable job which is desperately underpaid. When I was training for my career, I had four years post-school education all paid for by the tax-payer including my living expenses. £1400 doesn't really seem much to train someone in a vital profession that will undoubtedly benefit hundreds of children. I think the taxpayer is getting a bargain

andyfromotley

Gaz83 wrote: »

To me there's something incredibly immoral about taking a loan from taxpayers that you have no intention of paying back.

I think there something horrifically immoral about charging people fees for education.

Quid pro quo.

(just remind me, how much are tuition fees in Scotland?)

[Deleted User]

I am in my mid- 30's with two children at primary school age. I was made redundant in 2013 and heavily rely on my husband to support us. We don't or cannot afford the childcare for me to return to work (would not pay and would actually cost more).


I have worked and paid tax since I was 16 years old, we do not claim benefits.


I have only ever had maternity pay (minimal time off), which at the time was still taxed and paid national insurance on it and I didn't claim job seekers when I lost my job.


I do feel a little bad about taking out the loan but this is the only way I can see me finding job I enjoy (I volunteer at the school and they are willing to support me every step - but the do not have the resources to fund the course) and still look after my children.


I want to pay back the loan once I get a job but if we decide to move house I need to know what impact would it have on my income and would I need to declare it.

Tryingtomoveout

As far as I'm aware, underwriters don't take student debt into account. They are not priority debts, and if you got into financial difficultly the bank would get their mortgage payment before any student loan repayment, so they won't care.

ricky_v

I have been advised there is no credit checking which isn't an issue anyway but I am wondering if this type of loan would appear on my credit file and would I have to declare it if I applied for credit i.e credit card or mortgage with my hubby in the near future when I get a job.


I am trying to weigh up the pro's and con's of having this loan or whether (even though I am never going to earn over the threshold) should pay for it myself (which may be feasible) and not have this hanging over my head, so to speak.

Student loans will not show up on your credit file. The only time a student loan will effect a mortgage application is when they're assessing your net income.

If you think that it will be written off then go for it. You're a tax payer so you'll be paying for the course one way or another anyway.

Vikipollard

Tryingtomoveout wrote: »

They are not priority debts, and if you got into financial difficultly the bank would get their mortgage payment before any student loan repayment, so they won't care.

Not actually true, as student loan is taken directly from wages before you receive them. Or at last my son's is, and he is in public sector employment too

Vikipollard

Gaz83 wrote: »

To me there's something incredibly immoral about taking a loan from taxpayers that you have no intention of paying back.

Bit harsh! I don't think there's any intention to avoid paying back, simply as another poster has said that the wages for that particular job are shockingly poor.


OP good luck with your change in career - fully understand how difficult it is to try to balance childcare with working, and term time could give you the best of both worlds. Not to mention the teaching assistant role being a vital one for so many students' progression too.

rising_from_the_ashes

andyfromotley wrote: »

(just remind me, how much are tuition fees in Scotland?)

What does that mean?

If you're implying they're free for everyone wanting to change career, they're certainly not!



I can see both sides - I don't think it's right to take a loan that will never be paid back - at the same time, if someone designed a system that lets people do it then .... of course people are going to do it.