Pay in stages of get student loan

Sncjw

Hi all

I am going to be starting a history degree with the open uni but I don't like the idea of the student loan over my head and having it there for 40 years..I am not sure what my income will be in the future. 

I am able to put year one on a credit card and pay that off over time. I just worried if I do.drop.out that the student loan will want the amount ASAP plus it adds interest on the loan amount too. 

Has anyone self funded it.evem though they were eligible for student loan?.

Emmia

I'm self funding a Masters with the OU although I would be eligible for the post graduate student loan - I pay on a module by module basis which works for me. I don't want a student loan again.

The OU has it's own finance options too, which I don't think are tied to the student loan company.

Sncjw

Emmia said:

I'm self funding a Masters with the OU although I would be eligible for the post graduate student loan - I pay on a module by module basis which works for me.

The OU has it's own finance options too, which I don't think are tied to the student loan company.

You pay interest on that too 

Emmia

Sncjw said:

Emmia said:

I'm self funding a Masters with the OU although I would be eligible for the post graduate student loan - I pay on a module by module basis which works for me.

The OU has it's own finance options too, which I don't think are tied to the student loan company.

You pay interest on that too 

I personally just pay for my studies with my credit card which I pay off in full when the statement arrives, so I pay no interest. I suspect though that the OU finance may be cheaper than the Student Loan option

silvercar

Sncjw said:

Hi all

I am going to be starting a history degree with the open uni but I don't like the idea of the student loan over my head and having it there for 40 years..I am not sure what my income will be in the future. 

I am able to put year one on a credit card and pay that off over time. I just worried if I do.drop.out that the student loan will want the amount ASAP plus it adds interest on the loan amount too. 

Has anyone self funded it.evem thought they were eligible for student loan?.

If you are unsure of your future income, you would be well advised to take the loan. It gets written off eventually.

Paying one year yourself and the rest on a loan is not a good option. Your repayments will be the same as if you’d taken it all as a loan until such a time as the bulk of the loan has been repaid - a point you may never reach before write off.

If you do drop out, your student loan follows the same repayment path as if you had completed, there is no penalty.

I’m sure I’ve seen figures of about 10% of students not entering the loan system, though I suspect they are most likely to be the bank of Mum and Dad or trust funds rather than people scrimping and saving money that would be better placed in rainy day savings accounts/ house deposits/ pensions.