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Personal loan vs Student loan

Thut
Thut Posts: 4 Newbie
Hi,

My wife is currently studying at the moment and also wants to consolidate her debts into one manageable loan.

She will complete her studies this year, is it worth taking out a Student loan as opposed to the usual personal loans available, and if so what reasons warrant this route?

Many thanks in advance.
Thut

Comments

  • surfcat
    surfcat Posts: 734 Forumite
    This is almost a no-brainer. Student loan, current interest rate 2.6%, paid back only when earning in excess of 15000per annum, don't need to pay when you're out of work, if you become disabled, die, or when you reach 65.

    I can't think of any reasons why it would be better to have a personal loan, other than perhaps getting a larger amount?
  • Eliza252
    Eliza252 Posts: 449 Forumite
    yep, definately take out the student loan - there is no lower interest rate and no one will be easier on repayments.
    Also, just to let you know that you can apply for an increase on the standard student loan if you are hard up and they will also put you in the running for some hardship grants (yes thats money you dont have to pay back!)
    - kept me in baked beans when i was struggling at uni
    - good luck!
    I've made my debts bite-size too depressing to look at all at once so am handling them one at a time - first up Graduate Loan £1720 paid off! only £280 to go!!!
    Money to raise for tuition fees: £3000
    When you get to the end of your rope, tie a knot and hang on!!
  • Thut
    Thut Posts: 4 Newbie
    Ta for that, sorry not up to speed on the whole student debacle as studied in SA, so did the wife. Should have given more info!

    She is a teacher and taught for 5 years and is now completing her GTP/QTS so that they officially accept her as a teacher here.

    The reason for question is not sure of the ceiling placed on student loans. She has a personal loan from a few years back plus a shopper's best friend a credit card. So around 10 000 but more would be great as toying with idea of using the student loan to cover my credit card too.

    Trying to get debt free asap!
  • jimclark1967
    jimclark1967 Posts: 499 Forumite
    You wont be able to cover £10,000 with one years worth of student loan (more like £3-4k) but every little helps...

    JC
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