Which finance option to take

lcc86

Hi all,


I've registered to start my Masters with the OU in October. They anticipate the course will cost approx. £4000 but full costs are yet to be announced. The first module starts in October and will be £2000. I'm just trying to work out my best options in terms of borrowing.


The first option would be the postgrad student loan. I used the student loan repayment calculator from this website (http://www.moneysavingexpert.com/students/student-finance-calculator#part-time) to get a rough idea of what the repayments would be - I know it's not 100% accurate as it looks like it's geared towards undergrad loans but my maths isn't great so I needed a rough guide.


I currently earn just under £32000 and would continue to work throughout. I calculated for both full-time and part-time study as I'm not yet sure if I'll do the second module straight after the first, or have a break (that's why I love the OU!). I should repay in 7 or 8 years and the total to repay would be around £8500, so roughly £80-90 a month at current rates. The bonus with this is that I don't have to worry about repayments straight away.


The second option I've looked into is an OUSBA account - as a previous OU student I'm eligible on principle. This would mean I repay per module over 12 months at 5.1% so for the first module it would be £175 per month for 12 months and then it's done and dusted, and the interest is a lot less long-term than the student loan company. The second module I imagine will cost a similar amount.


Or the final option I've considered is applying for a 0% credit card (or similar), whacking the cost on there and repaying over 12 months (or less if possible).


I'm doing the 365 day challenge on here so should have about £600 available come January to go towards the costs. I've just become debt free this month so am cautious about any debt I may take on as a result of this, so just really wanting people's opinions as to what they would do in my shoes?


Any thoughts and suggestions welcome!

WibblyGirly

Would saving be an option and then paying upfront? you'd need to save about £300 a month to have the £2k for October.

lcc86

WibblyGirly wrote: »

Would saving be an option and then paying upfront? you'd need to save about £300 a month to have the £2k for October.

Hiya,

I can save some but not all. I should be able to save for the second module potentially which will help massively but my finances won't allow me to save the full amount (urgent home improvements need paying for) - maybe £500/£600 by the time the module starts?

WibblyGirly

Anything is better than nothing! Do they take installments? It would give you longer before putting the next payment on a credit card.

lcc86

The OU take monthly instalments at 5.1% for the year, which means I'd definitely clear it within the year regardless of what else comes up. The only 'danger' of putting it on credit card for me is the temptation not to pay it off within the same period.