Using a Loan to Pay University

Pixie5740

Is it a postgraduate course you are doing then?

Candyapple

Rowlands wrote: »

Just to clear things up, it is a graduate loan, I have been told that all I would need to do is sign some paperwork. I might only work part time but I work long hours.

Thank you for all the comments so far.

Did you apply online? Or via phone / in branch?

Apply online with Internet Banking and we'll give you an instant credit decision, with no need to complete paper documents (subject to planned maintenance periods). You can also get an instant decision if you apply in branch or over the phone.

If your application is approved online, we'll transfer the money into your account straight away.

So you've definitely got the headline rate of 3.3%, for £6k, repayable in 12 months time?

Rowlands

Pixie5740 wrote: »

Is it a postgraduate course you are doing then?

Yes

Candyapple wrote: »

Did you apply online? Or via phone / in branch?



So you've definitely got the headline rate of 3.3%, for £6k, repayable in 12 months time?

I've not formally applied, I asked on the phone about if I would be able to take out the loan, when I was told yes I was a bit doubtful as it is easier to give customers the answer they want, so I went in branch and spoke to the Branch Manager about it and got the same answer of yes. Both times I asked I got the same answer of 3.3% interest rate for 6K payable over 12 months.

I will not be applying until a few weeks before I need the money.

Candyapple

Rowlands wrote: »

I've not formally applied, I asked on the phone about if I would be able to take out the loan, when I was told yes I was a bit doubtful as it is easier to give customers the answer they want, so I went in branch and spoke to the Branch Manager about it and got the same answer of yes. Both times I asked I got the same answer of 3.3% interest rate for 6K payable over 12 months.

I will not be applying until a few weeks before I need the money.

Ah, so they haven't actually credit checked you yet. It even states on their website that the 3.3% is a representative APR.

Any quote obtained using our online calculator is for indicative purposes only and does not constitute an offer to provide credit. We reserve the right to decline any application for credit facilities or to offer to lend a different amount and/or at a different interest rate.

Can you keep the thread updated please with the outcome (when you have applied) and if they did indeed give you the loan amount as stated and with the headline APR.

Rowlands

Candyapple wrote: »

Ah, so they haven't actually credit checked you yet. It even states on their website that the 3.3% is a representative APR.



Can you keep the thread updated please with the outcome (when you have applied) and if they did indeed give you the loan amount as stated and with the headline APR.

Perhaps my naivety got the better of me, they are only willing to give me the loan at a higher interest rate. I am still better off as I am paying rent over 12 months not 7, even if I will be repaying slightly more.

What's everyones thoughts...What do I do? I could shop around but the only way I will know for sure is by going through the actual application process which will damage my credit rating, won't it?

EssexHebridean

Rowlands wrote: »

Perhaps my naivety got the better of me, they are only willing to give me the loan at a higher interest rate. I am still better off as I am paying rent over 12 months not 7, even if I will be repaying slightly more.

What's everyones thoughts...What do I do? I could shop around but the only way I will know for sure is by going through the actual application process which will damage my credit rating, won't it?

I'm going to point out the obvious - you're NOT better off if you're repaying slightly more. You may be in a better financial position, but that's a different matter.

Is there an option to overpay on the loan when you can to shorten the term and reduce the interest paid?

Rowlands

EssexHebridean wrote: »

I'm going to point out the obvious - you're NOT better off if you're repaying slightly more. You may be in a better financial position, but that's a different matter.

Is there an option to overpay on the loan when you can to shorten the term and reduce the interest paid?

I would still have roughly £300 extra in the bank each month. Obviously I would be paying a little bit more on the loan, but I then have more cash in the bank.

Yes I can make overpayments free of charge.

Chapuys

If this is just a 1-year postgraduate course then go for it. Spread it over 12 months and you will be peanutting it at home after you finish the course for little rent. If it is more than a 1-year course, then you may start to have overlapping accommodation costs if you spread it over 12 months.