Student Loans

[Deleted User]

Morning all

I apologise if this question is in the wrong section...I have looked for a student loan section and can't find one!

My daughter is going to University next Autumn and she assures me that as I'm on a low income (single parent) she will be eligible for the highest possible loan available.

I should have thought that accepting the highest loan just 'cos you can is a bit foolish...wouldnt it be better to work out how much money she needs and then take out a student loan accordingly?

My daughter is cool about re-paying the loan etc etc but then as we all know...the young always know best ;-)

What are your thoughts on this?

Thanks in advance

kim :j

missbiggles1

Deleted_User wrote: »

Morning all

I apologise if this question is in the wrong section...I have looked for a student loan section and can't find one!

My daughter is going to University next Autumn and she assures me that as I'm on a low income (single parent) she will be eligible for the highest possible loan available.

I should have thought that accepting the highest loan just 'cos you can is a bit foolish...wouldnt it be better to work out how much money she needs and then take out a student loan accordingly?

My daughter is cool about re-paying the loan etc etc but then as we all know...the young always know best ;-)

What are your thoughts on this?

Thanks in advance

kim :j

Taking out the highest loan possible is unlikely to leave her with much spare money these days. If it does, she can save it for any expenses after she graduates (flat deposit, work clothes etc.), as an emergency fund or repay it then.

[Deleted User]

Hi missbiggles... oh dear. Am I living in the dark ages? Is the highest loan possible STILL not enough to live on?. Jeez :-( I have let my daughter get on with it so far (don't want to interfere yada yada)

CLAPTON

Deleted_User wrote: »

Hi missbiggles... oh dear. Am I living in the dark ages? Is the highest loan possible STILL not enough to live on?. Jeez :-( I have let my daughter get on with it so far (don't want to interfere yada yada)

-do interfere (well work together on the matter)
-do confer with friends and neighbours
-and yes : it is probably best to get the highest student loan available
-help her review the costs of accommodation as different types can vary in price considerably

Pixie5740

My understanding of the maintenance loan is that you either apply for it or you don't. You don't get to select a lower amount than you are eligible to borrow. The maximum maintenance loan for a student living away from home outside of London is £8,200, and for a student living at home with parents is £6,904 which seems daft to me as I imagine the difference in the cost of living for students living at home and away from home would be a lot more than £1,296.

Just because your daughter takes out a maintenance loan this doesn't mean she has to spend the full amount. The student loan is the cheapest money she is ever likely to borrow and she will only have to start repaying it once she earns over a certain amount.

[Deleted User]

Ok.....so I *am* living in the dark ages...loans have always worried me and I have never had one ( apart from mortgage).

I need to find a simple explanation of the student loan system don't I?

Being worried about interfering in her life is leading to me not knowing important stuff! thank you all so much ! I shall research this myself....any ideas where to start the research?

And of course any more advice gratefully received!

speakingofart

I would start on the Student Loans website, the Student Room (forum a bit like MSE for students) also has a good guide, UCAS website has good links.

The thing to remember is that it's not like a normal loan - she won't repay until she's on a halfway decent salary and also that (whether or not you think this is a good thing!) most jobs these days require at least a degree, so in many ways student loans are more like a graduate tax. That's how I try to see mine anyway....

Pixie5740

There's even a Student Loans Mythbusting guide on MSE.

patanne

It is also worth remembering that governments can (and indeed have) moved the goalposts because what you are told is not necessarily what the terms and conditions ACTUALLY say. They can and have sold the student loans to debt collection agencies for no other reason than the ex-student is entitled to defer - not in arrears the ex-student has done nothing wrong apart from not earning enough money.

There is a very large thread on here about the loans sold to Erudio (they are planning on selling more). Don't read it if you suffer from nightmares.

Wilma33

I'm not sure it's even possible to apply for a "part loan". She will probably need it all plus a part-time job.

Pixie5740

patanne wrote: »

It is also worth remembering that governments can (and indeed have) moved the goalposts because what you are told is not necessarily what the terms and conditions ACTUALLY say. They can and have sold the student loans to debt collection agencies for no other reason than the ex-student is entitled to defer - not in arrears the ex-student has done nothing wrong apart from not earning enough money.



There is a very large thread on here about the loans sold to Erudio (they are planning on selling more). Don't read it if you suffer from nightmares.

Former students who now have student loans so old they could legally go to the pub and buy a pint and still earn less than £28,828 have the right to continue to defer and the government had the right to sell the loan book rather than continue to fork out for the administration of these loans which are unlikely to ever be repaid.

This constant deferment is why the income based repayments were introduced for those taking out student loans from 1998 onwards.

Going to university these days is more expensive particularly in England & Wales so I'd urge any potential student to seriously consider whether it's worth them going to university. I'd also suggest they look at the costs of studying abroad as 1) it's a great experience and 2) it can be cheaper to study elsewhere in the EU.