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Student loan

running2021
Posts: 5 Forumite

in Loans
Hi all
looking for some guidance on securing a student loan to finance an OU course starting sept/Oct this year. When can I apply for student loans for 2021/22? I can’t see anything on the government website. Any guidance much appreciated.....!
looking for some guidance on securing a student loan to finance an OU course starting sept/Oct this year. When can I apply for student loans for 2021/22? I can’t see anything on the government website. Any guidance much appreciated.....!
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Comments
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So I’m assuming you’ve already registered with the OU, head here next;
https://www.gov.uk/student-finance-register-login
There is lots of information on studenthome about applying for finance.Obviously I don’t know your situation, but as a mature student, already earning, I knew I’d have to pay it back, and the interest rate from SLC is horrifying. I therefore took out a 0% credit card and used that for the fees, which might be something you want to consider.1 -
It depends whether your course is undergraduate or postgraduate, full time or part time. There's some OU info here : http://www.open.ac.uk/courses/fees-and-funding
Info here from this very mse site : https://www.moneysavingexpert.com/family/grants-education/
This government site is quite comprehensive, I think : https://www.gov.uk/student-finance
There doesn't appear to be any panic about applying for funding - and the government site says "You do not need a confirmed place to apply."
You may, as es5595 suggests, be able to get a 0% interest credit card to use for payment but I guess the limit will have to be fairly generous.
Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.1 -
Hi
many thanks for taking the time to reply. Much appreciated. Both really helpful.I am going to be a mature student I guess, being 51. I’m hoping to register for a BSc course starting in September/October, as an undergraduate. Registration opens in a few weeks.I’m hoping the student loan is going to be a way forward. My understanding is that you don’t start repaying until you have completed the course? But I might have read that wrong.Will read up more on the info you have both offered.Thanks again.0 -
Current OU student here.Part time applications usually open around summer time. Do not apply for full time loan as that is incorrect. If you intend to study over 6 years, then you are correct in saying that you do not repay the loan until you have finished studying and earn over a certain amount.The 0% credit card is a very bad idea. I don’t know of any 0% credit cards with a rate that lasts over 6 years...!*The RK and FF fan club* #Family*Don’t Be Bitter- Glitter!* #LotsOfLove ‘Darling you’re my blood, you have my heartbeat’ Dad 20.02.202
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So with a student loan you’ll accruing interest at RPI + 3% for the first four years if you’re studying part-time. That’s currently 5.6%.Then the rate depends on how much you’re earning;
Your annual incomeInterest rate £26,575 or less RPI (currently 2.6%) £26,576 to £47,835 RPI (currently 2.6%), plus up to 3% Over £47,835 RPI (currently 2.6%), plus 3% Hence the pretty important question of how much you’re earning. Also of your credit rating for a 0% card. And no, @Mrs_Ryan you wouldn’t get one for six years, you’d take out a 0% spending and then moved to a 0% balance transfer. It’s a little bit of work, but significantly better for a lot of working mature students than they’d be paying in interest!
You also said you’re 51, so that factors in as well, because whilst a student loan won’t get written off until 30 years past the date of commencement, if you’re earning under £2,214 a month, you make no repayments. Therefore, if you’re winding down to retirement, and depending on how much you’re expecting to earn over the next 30 years, a student loan could make sense as you’ll never repay the full amount you borrowed, whereas you would have to with a credit card.Also, should the worst happen, your credit card debt would come out your estate, but a student loan will be written off.
There are quite a few variables to consider!1 -
es5595 said:So with a student loan you’ll accruing interest at RPI + 3% for the first four years if you’re studying part-time. That’s currently 5.6%.Then the rate depends on how much you’re earning;
Your annual incomeInterest rate £26,575 or less RPI (currently 2.6%) £26,576 to £47,835 RPI (currently 2.6%), plus up to 3% Over £47,835 RPI (currently 2.6%), plus 3% Hence the pretty important question of how much you’re earning. Also of your credit rating for a 0% card. And no, @Mrs_Ryan you wouldn’t get one for six years, you’d take out a 0% spending and then moved to a 0% balance transfer. It’s a little bit of work, but significantly better for a lot of working mature students than they’d be paying in interest!
You also said you’re 51, so that factors in as well, because whilst a student loan won’t get written off until 30 years past the date of commencement, if you’re earning under £2,214 a month, you make no repayments. Therefore, if you’re winding down to retirement, and depending on how much you’re expecting to earn over the next 30 years, a student loan could make sense as you’ll never repay the full amount you borrowed, whereas you would have to with a credit card.Also, should the worst happen, your credit card debt would come out your estate, but a student loan will be written off.
There are quite a few variables to consider!
Additionally every time you transfer your balance; your being charged a fee by the new and old supplier for this balance transfer, going through credit checks etc and using a balance that you otherwise wouldn't need.
Cons;
A credit card will be on your record, go against you on a mortgage application and impact your available credit long term.
A credit card will still be required to be paid regardless of income, and context - made redundant? Didn't put the education to use for that promised high paid job? New family member? Health or household emergency? - it still needs to be paid.
Doesn't get wiped, nor can it be offset with pension payments to reduce the monthly payment.
Inconvienent.
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