Should I pay for my daughter's PGCE

worzel1935

Hi, my daughter has one more year of her UG degree (re-did year one so 4th year) and wants to do a PGCE after. She will be on repayment plan 2 for her degree but if she takes a loan for the PGCE this will be plan 5. As the latter will kick in to be paid sooner and paid for 40 years (unless she earns less than £25,000, I sure hope not) she'll end up paying a disproportionate amount for this relatively small loan, £9540 ish relative to about £60,000 (She only ever got the minimum maintenance due to our income). It seems to me that, as we are fortunate enough to be able to afford to, we should pay the PGCE fee for her. I know there is a risk if she can't work etc but if she gets a decent teacher salary it seems to me that she'll pay way too much if she gets another loan. Anyone able to advise me please? 

Brie

IF you can afford it and IF never getting it back wouldn't cause any stress, then fine.  Also IF there are no other siblings that might be offended by you favouring one child over another, unless of course you're giving £££ to them too.

silvercar

This is worth a read:

https://forums.moneysavingexpert.com/discussion/6557351/plan-2-and-plan-5-loans-current-pgce-students-repayment-rules-costing-10-000s

Basically repayments will go to the plan 2 loan in the main, so the plan 5 pgce loan will eventually get written off.