Should he take out a student loan or not?

DirtyLion

I have an 18 year old brother in law who lives with his mum, has no intention of moving out or even learning to drive. He received a large inheritance from his late father which sits in trust and his education fees can be paid from this and he occurs no living costs at all while at home.

His mum says he should take out a student loan despite having the money in trust and no financial outgoings, she sees it as free money and you can't lose. It seems odd to me that you'd want to have a debt when it's not necessary but according to her, Martin Lewis strongly recommends all students take out the loan whether they need it or not, is this true?

Could someone in the know please tell me whether a student loan would be a good idea or not given his situation?

Ed-1

DirtyLion wrote: »

I have an 18 year old brother in law who lives with his mum, has no intention of moving out or even learning to drive. He received a large inheritance from his late father which sits in trust and his education fees can be paid from this and he occurs no living costs at all while at home.

His mum says he should take out a student loan despite having the money in trust and no financial outgoings, she sees it as free money and you can't lose. It seems odd to me that you'd want to have a debt when it's not necessary but according to her, Martin Lewis strongly recommends all students take out the loan whether they need it or not, is this true?

Could someone in the know please tell me whether a student loan would be a good idea or not given his situation?

Yes max out the loan, forget it as it's not a debt in practice - it's a tax contribution set at 9% of earnings above a threshold for undergraduate loans and 6% of earnings above a threshold for postgraduate loans.

So for a good majority, the amount borrowed will be more than the amount actually paid back in contributions as the Government writes off any outstanding amount 30 years from the April after leaving the course.

[Deleted User]

And taking out the loan can mean access to "free" bursaries

Starrystarrynight1

Does your brother intend to get a job at some point? I know everyone says take out the loans, but if he doesn't need to, or doesn't intend to work, then it seems a bit immoral to me, as he will never repay it. I'll probably get hammed for saying this. LOL!