To pay for PGCE upfront or get a loan?

hannahtheshopper

Hi all, 
I’m due to start a PGCE course next September and it’s not in a subject that receives funding so I’ll be paying £9250 for it. I’m 22 and have previously taken out standard government funding for 3 years of undergrad + maintenance loan. My parents have proposed that they pay for the PGCE course upfront for me (there would be no obligation for me to pay this back to them). We are trying to work out if this would be the best option. I’m under the impression that I’m pretty likely to pay back my current student loans in the remaining 30 years and I don’t intend to stay in teaching long term. Does anyone have any insight on whether it is best to take it out as a government loan and pay back with interest potentially, or accept the offer from my parents? Thanks in advance!

Ed-1

hannahtheshopper said:

Hi all, 
I’m due to start a PGCE course next September and it’s not in a subject that receives funding so I’ll be paying £9250 for it. I’m 22 and have previously taken out standard government funding for 3 years of undergrad + maintenance loan. My parents have proposed that they pay for the PGCE course upfront for me (there would be no obligation for me to pay this back to them). We are trying to work out if this would be the best option. I’m under the impression that I’m pretty likely to pay back my current student loans in the remaining 30 years and I don’t intend to stay in teaching long term. Does anyone have any insight on whether it is best to take it out as a government loan and pay back with interest potentially, or accept the offer from my parents? Thanks in advance!

If you take out loans for your PGCE starting next year they will be on Plan 5. Your existing student loans are on Plan 2. You may wish to read the government response to this FOI request which gives some details of how repayment may work for your case when the government eventually decide:

https://www.whatdotheyknow.com/request/post_2023_plan_5_student_loans_f

silvercar

If you don’t intend to stay in teaching, why not do a masters degree in a subject that interest you?

Ed-1

The legislation on dual-plan repayment has now been published.

(5A) If a borrower is required to repay a combination of plan 1, 2, 4 or 5 loans, the repayment threshold for the loan with the lowest repayment threshold applies.

(1A) The Authority must reduce the outstanding balance of the loans by— 

(a) in the case of the loan with the highest repayment threshold, the total amount due in respect of that loan, and 

(b) in the case of every other loan, the amount due in respect of each loan less the amount due in respect of the loan (or loans) with a higher repayment threshold.”.

https://www.legislation.gov.uk/uksi/2022/1335/contents/made

ElEvans

Hi Hannah,

I have found myself in a very similar (and fortunate) position where my family have offered to pay for my Masters course outright, giving me the option of not having to take out another loan, in addition to my undergrad one.

I just wondered what decision you came to in the end? I can't seem to find any other advice/similar situations!