Overdraft Vs Loan? which is best?

philip1427

Hi all I am looking for some help, hopefully I have posted this in the right place.

I am medical student from and studying in Northern Ireland. I like to read MSE for money advice but the student loan section doesn't give much advice for others not from England.

This is my situation....

I am going into my third year of study. I have 3-4 more years left to do. For my first two years, I have had a part time job earning about £3000 a year. So far, I haven't needed to take out a maintenance loan to cover my expenses but I think doing medicine with a part time job is getting a bit too much for me.

I don't really know what to do from here...

I think I have two options. Firstly I can take out a student loan of up to £3750 and pay 1.75% on it. Or secondly I was thinking about taking an overdraft out. Ulster Bank is offering £3000 interest free overdrafts for students. I have some savings and I think with the overdraft and my interest earnings from the bank I could manage to live on that and avoid paying the interest. However should I just take out the student loan and stop worrying about it?

Also can I pay off the student loan early without any fees and save on future interest?

Thanks for your help

[Deleted User]

I would keep your OD for emergencies only - especially as it can be withdrawn at any time.

anto164

Definitely student loan over overdraft facility.

Student loans don't really get looked at when you need other finance items when you're out of education, whereas an overdraft will.