Student Loan or Bank of Parents

jajecoal

We are considering the option of our daughter getting a Maintenance Loan or us funding her university and she pays us back interest free rather than the 9% she would have to pay interest on the loan.  Seeing them come out of uni with a £60 grand debt is so scary.  There is also the factor that they don't pay any back until the are earning over a certain amount and it also gets written off after 40 years.  We may not save any money ourselves in this period which again is also a concern.  
Could she get the loans, not spend it and pay it all back once finished uni without any interest - just as a back up.  Or does the interest start on the load as soon as she is paid it.  

BrilliantButScary

I won't be answering your question, but posing more.

Is going to university the best option for your daughter? Has she considered an apprenticeship instead?

Does your daughter have a clear idea what she wants to do as a career? Will the degree your daughter wants to do lead to employment in this sector?

Is doing a degree a good investment, what will be your daughter's potential income in her chosen employment?

ButterCheese

Get a Student Maintenance Loan

I went to Uni when student loans were about 9k.  I was still paying it off 3 years ago and I'm now in my 40s.  When you're not earning much, it doesn't seem like a lot out of your paycheck.  But believe me, when 60 quid a month is coming out, and you are not actually using your degree for the job you are in anyway, you do tend to question if what you did was the right option.  And imagine now, it's going to be more than £60/month when you're earning above a certain threshold and trying to save for a house and run a car and...and..and.

As above - I would only consider Uni for someone who absolutely knows what they want to do and needs a degree.  It is now far too expensive to go to Uni if you're just going to use it to get a job that doesn't pay that well.

silvercar

Where does this "9%  she would have to pay interest on the loan." come from???

She would pay back 9% of her salary that is over the threshold, not 9% of her total salary and not 9% interest!

Four points, firstly there is no point paying off the loan if a chunk of it would otherwise be written off by the government. Secondly, there is more to going to university than getting a decent job, though personally I think careers become easier with a degree certificate in your back pocket than without. Thirdly, if you are going to pay for her education make sure you can afford it. Fourthly, could the money be put to better use eg a house deposit?

jajecoal

BrilliantButScary said:

I won't be answering your question, but posing more.

Is going to university the best option for your daughter? Has she considered an apprenticeship instead?

Does your daughter have a clear idea what she wants to do as a career? Will the degree your daughter wants to do lead to employment in this sector?

Is doing a degree a good investment, what will be your daughter's potential income in her chosen employment?

My daughter is going to study adult nursing

BrilliantButScary

jajecoal said:

BrilliantButScary said:

I won't be answering your question, but posing more.

Is going to university the best option for your daughter? Has she considered an apprenticeship instead?

Does your daughter have a clear idea what she wants to do as a career? Will the degree your daughter wants to do lead to employment in this sector?

Is doing a degree a good investment, what will be your daughter's potential income in her chosen employment?

My daughter is going to study adult nursing

I think you will find the following helpful:
https://nationalcareers.service.gov.uk/job-profiles/nurse

There are opportunities to qualify as an adult nurse via an apprenticeship route and in the forces.

Does your daughter have any care experience?
Are there any nurses in the family.

Doing a nursing degree is a bit like competing in the 'Grand National', clearing the obstacles, which can be academic assignments/OSCE's  or Clinical Placements (2300 hours over 3 years) and running as fast as you can in between. It is not like a lot of other courses, and there is little time available for working 

The salary for a newly qualified nurse starts at £29,000
(Band 5) and many will remain as Band 5.

https://ifs.org.uk/sites/default/files/2024-04/Progression-of-nurses-within-the-NHS-IFS-Report-R310.pdf

I would be checking out other roles, Occupational Therapy, Radiography, Audiology, Podiatry, Speech and Language Therapy, as they will often have better progression and generally speaking are not so prohibitive in regards to unsocial hours/physical and emotional demands.

silvercar

BrilliantButScary said:

jajecoal said:

BrilliantButScary said:

I won't be answering your question, but posing more.

Is going to university the best option for your daughter? Has she considered an apprenticeship instead?

Does your daughter have a clear idea what she wants to do as a career? Will the degree your daughter wants to do lead to employment in this sector?

Is doing a degree a good investment, what will be your daughter's potential income in her chosen employment?

My daughter is going to study adult nursing

I think you will find the following helpful:
https://nationalcareers.service.gov.uk/job-profiles/nurse

There are opportunities to qualify as an adult nurse via an apprenticeship route and in the forces.

Does your daughter have any care experience?
Are there any nurses in the family.

Doing a nursing degree is a bit like competing in the 'Grand National', clearing the obstacles, which can be academic assignments/OSCE's  or Clinical Placements (2300 hours over 3 years) and running as fast as you can in between. It is not like a lot of other courses, and there is little time available for working 

The salary for a newly qualified nurse starts at £29,000
(Band 5) and many will remain as Band 5.

https://ifs.org.uk/sites/default/files/2024-04/Progression-of-nurses-within-the-NHS-IFS-Report-R310.pdf

I would be checking out other roles, Occupational Therapy, Radiography, Audiology, Podiatry, Speech and Language Therapy, as they will often have better progression and generally speaking are not so prohibitive in regards to unsocial hours/physical and emotional demands.

For the purposes of this thread, it’s a shame the study didn’t look at the career progression of those with a degree compared to those without. It did point out that career progression was far greater among younger nurses than those age 45+, which may indicate a leaning towards having a degree helps career. The study also suggests that progression to band 6 and higher is common amongst younger nurses, so your assertion that many will remain at Band 5 may not hold true for recent graduates.