Student loan

doorhinged

My daughter has taken out a student loan for £9000 because she was going to move out of the home and rent but has not been able too so is staying at home. Would it be worth putting the 9k into a life ISA so she can potentially have a deposit for a place once she graduates and has a job?

Kim_13

doorhinged said:

My daughter has taken out a student loan for £9000 because she was going to move out of the home and rent but has not been able too so is staying at home. Would it be worth putting the 9k into a life ISA so she can potentially have a deposit for a place once she graduates and has a job?

If her circumstances have changed in year, SLC will want it back as she was only entitled to the ‘at home’ rate. She is only able to delay repaying the amount she was actually entitled to borrow.

Further, given the frozen LISA thresholds, the decision to use a LISA is not as easy as it once was, and £9K is enough to affect entitlement to means tested benefits. No one should be locking away money they’re paying interest on. 

Albermarle

doorhinged said:

My daughter has taken out a student loan for £9000 because she was going to move out of the home and rent but has not been able too so is staying at home. Would it be worth putting the 9k into a life ISA so she can potentially have a deposit for a place once she graduates and has a job?

She needs to inform SLC of her change of mind. They will recalculate what loan she should now be given. You still get a loan even if you stay at home, just a smaller one.
If she just banks the money it would presumably be seen as fraud. 

Remember a student loan is not a loan in the normal sense of the word, as many students never have to pay it back. 

doorhinged

Thanks for your answer that's very useful information