student loan -

sheramber

He can pay the student loan back at an higher rate and therefore pay less interest. My son aid his off as soon as he could.

He could take the loan and if he finds a job and his finances are secure he could use his inheritance to pay off the loan.

On the other hand, If he did need to use his inheritance after graduating he would still have it available.

zagubov

On other threads, many posters have looked into this
https://forums.moneysavingexpert.com/discussion/comment/70831772#Comment_70831772

In some of them people have suggested, if the uni is in an area where jobs are easy to find, then buying a property where you could take a lodger/ rent a room out (say to another student) would be sensible. He's gonna need money to secure his accommodation. He'll need a job in which he can start very early to pump money into a pension of some sort as early as possible.

As regards in doing a degree in Europe, fair enough. There may be little or no fees but living costs can be expensive and with no maintenance loan, the inheritance could be eaten up. How's that better than getting a degree in the UK, having a low-cost loan and still having the inheritance to pump into a house purchase or an early start on a pension? After all he could do a sandwich degree with a year in Europe, or enrol on an Erasmus exchange for part of his course.

I'm no fan of debt, but this loan is one form that has its uses. As regards future variations on student loan repayments, as Voyager2002 suggests, there is a certain safety in numbers in that a massive and growing chunk of the population would be affected and would use the ballot box to punish any party that decided to use graduates as the piggy bank of the nation.

Mojisola

ktj wrote: »

Hi, My son goes to university this September to do a 4 year course in Chemistry. We estimate that by the end of his course this will have cost him about £70 - 80k

Money that he has inherited from his grandparents mean that he could support himself though university without needing a student loan.

Is the inheritance enough to buy a flat in his uni town? He could then have one or two lodgers paying him rent while he's at uni.

Otherwise, get him to see an IFA about investments.

Voyager2002

zagubov wrote: »

As regards in doing a degree in Europe, fair enough. There may be little or no fees but living costs can be expensive and with no maintenance loan, the inheritance could be eaten up. How's that better than getting a degree in the UK, having a low-cost loan and still having the inheritance to pump into a house purchase or an early start on a pension? After all he could do a sandwich degree with a year in Europe, or enrol on an Erasmus exchange for part of his course.

The immediate advantage is the saving of 9,000 for each year of study. That would certainly offer better value for money than using his inheritance to study in the UK and making a cash payment of the tuition fees. And in much of Europe the cost of accommodation is a good deal lower than in most of the UK, so again there is scope for cost-saving as opposed to somewhere like London, presuming of course that a suitable course at a reputable university were to be available.