Too much Maintenance loan
in Student MoneySaving
3 replies 181 views
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 ?
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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).