Too much Maintenance loan

My Daughter is a first yr midwifery student and gets over the maximum maintenance loan for her course, due to my very low income and the longer length of her course. She also receives the NHS non repayable annual bursary.  Due to the pandemic she will not use all her loan this year and has already put a few thousand into savings. Should she take all the loan she is offered for yrs 2 & 3 or just take less and reduce her debt please ?


  • inthezeroroominthezeroroom Forumite
    12 Posts
    10 Posts First Anniversary
    If she is sure that she doesn't need it for living expenses then take a smaller loan, but if she is not sure then I think a bigger loan (or the max) and set it aside somewhere safe as it would be much better to use these funds if necessary than to go overdrawn or borrow another way (e.g. credit card). I think I would err on the side of trying not to take it if I could avoid it.
  • grumiofoundationgrumiofoundation Forumite
    3K Posts
    1,000 Posts Third Anniversary Name Dropper
    I disagree with the above poster - from the circumstances described I think take the max loan available.
    The likelihood is that she will never pay all the loan back, if she does this is because she will be a high earner and the 'cost' will come in the future.

    Money could probably be used more productively now e.g. house deposit or as above to prevent borrowing at higher rates. 

    What are your daughters plans in the short/medium term. From your post it sounds like she will not necessarily just go and spend it. Money could probably be used more productively now e.g. house deposit or as above to prevent borrowing at higher rates. 

    If it would be used for savings for a deposit then take a look at the lifetime ISA. If the alternative is to not take it she could put the money into this product - either way not spending it. In the event she will not be buying a house for 10+ years could even consider a stocks and shares lifetime ISA (comes with risk of investment loss but would hope over 10 years to beat cash).

  • suejb2suejb2 Forumite
    1.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Take the loan and save it or invest it. 
    Life is like a bath, the longer you are in it the more wrinkly you become.
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