Is a loan worth it..

edited 30 November -1 at 1:00AM in Student Money Saving
5 replies 1.4K views
labucklandlabuckland Forumite
3 Posts
edited 30 November -1 at 1:00AM in Student Money Saving
I am going back to UNi as a very mature student (54) and have money set aside from redundancy which will easily cover me for the years top-up degree that I'm undertaking. I seem to think that with the rates the way they are, that there is no incentive for me to take out a loan for fees or maintenance... Am I just being naive as I think there is a thing called parents learning allowance I could claim. My wife earns around 42K and I have other income of about 10K...

Any thoughts please?

Replies

  • I'd hazard a guess that your wife's income + your income are going to take you way above the threshold for Parental Learning Allowance (PLA). I understand that SF do take some necessary household payments into account and deduct them from the household income, but it still seems unlikely.

    As for the tuition fee and maintenance loans, it's an entirely personal thing, but do you intend to work again after completing your degree? Is it likely to be a high income job? Student finance is only repayable once you start to earn over £25k from the April following graduation, but interest starts to accrue from the day you receive your first instalment. It might be worth taking out the loan and hanging on to your redundancy money. Here's a link which can give you a rough idea of what repayments are likely to be:
    https://www.gov.uk/repaying-your-student-loan/what-you-pay

    I guess you will need to compare your options, but there's loads of info here on MSE to help.

    Best of luck with your course.

    I used to be Starrystarrynight on MSE, before a log in technical glitch!
  • CakeCrusaderCakeCrusader Forumite
    1.1K Posts
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    What sort of course is it? If it's a year's postgraduate course there's no maintenance grant, and the loan will just about cover the course fees. If you're starting an undergraduate course the loan and any grant is different.
  • It's a top up degree.. I did an HND in the 1980s and need to do the top up before I can do a PGCE the following year..
  • CakeCrusaderCakeCrusader Forumite
    1.1K Posts
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    They were going to look at the interest on Student Loans, but I'm not sure how long they will take and whether they will change them to be honest. What you could do is take out as much as you need and repay it faster by making additional payments when you can as this will reduce the amount of interest in the long term. Teaching isn't well paid, sadly, and you may reach the point where you never pay your student loan back as you've retired by the time you're due to start repayments (remember the threashold changes every year). Remember to contact your local council when you start your course so they can implement your council tax discount. ;)
  • Hi, I have a child who is now going to live at home and travel to uni each day, is it still a good idea to claim the reduced maintenance loan and save any funds that aren't used or will they pay back a lot more in the future so best not the accept the loan?
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