Career development loans

jazzy2000

I was about to do a postgraduate course and with no funding available the only option appears a career development loan. I have no income or savings at the moment to cover the cost of the course, which starts in September.

My big concern is about when you pay it off, I've heard this must happen during the course, immediately at its conclusion, a month afterwards or can be deferred for a max 18 months. But how can you pay it off with no income if you don't manage to get a job?

Does anyone know if there is a option where you can delay payments, like the Student Loan system, until you are earning a proper wage? Or if not what the consequences would be of not making payments of the CDL, I don't want to screw up a perfect credit history. But at the moment I'm freelancing and don't earn enough to contribute anything more than my essential living costs.

Can anyone help, thanks.

Eliza252

Hi, I looked into the career development loans and decided not to take one out after speaking to a number of students who had. There is no option to defer (that I am aware of) - that's why its marketed as an option for students who are taking a vocational course. I wold really not recommend it unless you are pretty much guaranteed a job after you finish - the student I spoke too was freelancing in documentary research and she was really struggling. Plus, the interest rates are inordinate! - they are higher than some credit card rates!
In the end I just decided to stick it out and work for a year so to give me some financial backing - am currently developing tennis elbow from inputting computor data! - but I hope I will have a wad of cash to fund my further studies at the end of it all.. Hope that helps...

jazzy2000

Someone replied to my mail!

Thanks Eliza, I'm starting to think my only hope is the credit card. It's a disgrace the government doesn't help people who want to better themselves. I only used two of my four-year student loan entitlement before but I can't now? My only hope is the BBC sponsorship scheme comes off!

Eliza252

yup! I totally agree, I have failed miserably to find funding or a manageable loan (although I think that would be a last resort for me) as well - there is very little if your not studying teaching/engineering or nursing as far as I can see. There's a few scholorships around if you got a 1:1 at uni but who had time for that much extra study - when we were all working around the clock to pay our fees!
I came across a scheme today called the 'Fulbright Scholorship' its to go and study masters in US but they pay for everything for the first year - might be worth a look, have not got the link but it should come up if you google it.
If I see anything else will give you a shout!

David_Brent

I have been considering doing a Masters to follow on from my degree after the summer, but I found the same thing just the career development loan and a few impossible to get scholarships, I decided against it, because at the moment I just have a part time job so the repayments would push me to much and leave me without much cash to do anything! Basically if you can't afford it, don't do it! I'm going to get a job full time for a year and save the money to enroll the following year, at least that way I will be financially ok, and have no loans to pay off. Also from what I have read about the masters course some prefer that you have been working full time in industry before carrying out the course.

jazzy2000

It's looking like I shouldn't bother and try to earn the money first to finance it, the trouble is doing this course is a way of "saving" my career as I recently returned from a period travelling abroad (just call me a grown-up gapper!), having gained several years experience, but now can't get any full-time work in my field. Hence why I have no money or assets as I've already sold/spent them! This is the only career for me and I don't want to have to degrade myself by doing an unfillilfing job somewhere just to take a course with no guarantee for a job. To be honest I couldn't take that as I've already been away from my chosen path for too long. Why did I leave in the first then? It's a long story.

But hey maybe one of my job applications will come off and all of this will become irrelevant or I'm just being too cautious as every single person who took the course I want to in the last few years has ended up in work . . .

By the way, for anyone interested, my rant about the lack of government help for like-minded souls looking to better themselves through further education maybe misplaced as according to the company promoting the CDL package the system is government's way of helping. Oh!

jazzy2000

Hey Suzie, thanks for replying. I can't believe I've had so many responses, I wasn't sure if anyone would, it's cool!

It's really starting to look as if I need to find a suger-mummy, or start selling my body, if only anyone would buy it. Boy they really rip you off for interest, I worked out your loan cost more than £46 a month or 35% of the total loan. Interest on a previous car loan of £7,500 I had only amounted to about 26%. They are sharks!

My course is at college so I'm not sure how much they can help, but I'll be sure to ask. It can only be done full-time as its eight months long and costs a little over £3,000. Unfortunately I reckon another £1,500 will go on travelling expenses, not including food and other costs! Looks like I'll be pursuing other funding alternatives, but it's great to hear about other people's experiences.

newsmonkey

Worth pointing out for anyone reading this who might get put off: CDLs aren't thoroughly evil. Remember they're interest-free while you're studying, and for a month or two afterwards.

If you can afford to pay it off before interest is due, great. If you can afford to do so a long time before, stick in savings and reap the benefits.

If you can't, equip yourself with an Egg and Texaco card beforehand, with limits that equal your loan amount (assuming you can get accepted). Just before interest is due, 'super balance transfer' from Egg into your current account, use this cash to pay off the CDL. Then transfer the Egg debt to Texaco. You'll then be paying 3.9% on your CDL rather than 10-ish. Pay a fixed amount each month (more than minimum) and Robert is your mother's brother.

Eliza252

Come to think of it - I'm surprised there havent been more serious complaints about this Career Development Loan Thing - it was pushed at me at the first viable option by my uni careers service when I mention I wanted to do further study. And I wasn't applying for the golden 'vocational' course anyway. Even if you were doing a vocational course it would still be a rip-off as far as interest rates are concerned - Scandal!
Thank goodness I/we are a bit more money savvy :money: !
I definately think the answer is to delay and work for as long as possible - its INCREDIBLY frustrating, especially when all of your friends are off travelling/studying (on borrowed mulah) :rolleyes: . However, I'm hoping the general skills I pick up from my job now will help when I've finished studying - plus I am doing LOADS of voluntary work in my chosen area, which keeps me sane and makes me look good :A . Chin-up everyone! And if anyone does come across a viable loan/grant pllleeease post!

fran_from_willesden

Oh dear - doesn't sound too good for me!

I go back to Uni in September to start a MSc in Environmental Engineering at Newcastle and the CDL is the only way I'm gonna get through it!

It's been two years since I graduated and I spent the first year paying off my huge overdraft and credit card amounts (I was working in a low paid job in a call centre in Liverpool). I then moved home and although I earn a fair bit now, I have only managed to pay off overdraft/credit card in the last few months. I'm frantically saving for my fees (£3200, of which I'll have around £2000) and my lovely Mum said she'll pay for my accommodation (probably about £2500 - £3000). I will essentially go back to Uni with no savings apart from what the CDL gives me. I don't want to take a loan out but I have no choice...when I finish my student debt will be around £25k. The only consolation I have is that I'm pretty certain that I'll have a job at the end of the course.

It's a vicious circle - you go to uni to get better jobs but end up with massive outgoings - and for the majority - massive debt.

Better buy that lottery ticket tonight!