Small student loans

Pham76

Apologies if you’ve seen this post already but, I attached it to someone else’s post in error!
Still not sure I’m doing it correctly, but here goes lol.

Hi, I’m signing up for pgce in September and only need a loan for the course fees £9250.
Is it worth getting a student loan or would I be better off getting a
0% credit card and paying it off with that.
I’ve read martins page on student loans but all the examples are for bigger amounts and he basically says don’t bother paying it off in full unless you’re a really high earner, but what about smaller amounts that are likely to be paid off in full within the 30yrs?

CakeCrusader

I can see your thinking, but a 0% credit card usually lasts for 3 years and you may run into problems with the application due to any drop in income (you won't be working, you'll be a student) and the limit may not cover all of the fees. Have you looked into whether there's funding available? https://getintoteaching.education.gov.uk/funding-my-teacher-training/bursaries-and-scholarships-for-teacher-training



I've taken out a graduate loan to pay for a law course. I won't start paying it back until I finish, and it's a percentage of my income after then. With a credit card you'll have to make the minimum payment right away, even when you're studying. Do what's right for you though, but do have a look at the link to see if there's funding.

Pham76

Thanks for your message.
I do have funding for the year course, 26000 bursary.
Plus I can claim a few extras which can probably pay off about half the fee while I’m studying without leaving me short.
And providing I pass the course I am also guaranteed a position at the school I’m training with. So future finance looks ok, just wanted an idea whether I’d be financially better off paying the debt off through student loans or not?

CakeCrusader

It depends on how much you'll earn and how old you are now. It gets written off once you reach a certain age, just like an undergraduate Student Loan, so any interest could be irrelevant. I'd look at the repayment terms as it may well work out cheaper for you to take out the Graduate Loan and not a credit card. I don't know if you'll be better off. If you're in your 40s now you'll have 20 years of paying off a Graduate Loan before you retire, and it's a small amount of your pay so you'll probably end up paying 1/4 of it back. You need to do the calculations.

Pham76

Thanks for your help, think I’m steering away from credit card, looking at the numbers and like you say age, probably won’t get close to paying off even the small amount for course fees.
Might even apply for a bit more ��