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Tuition fees
pmorrisjones
Posts: 125 Forumite
Hi there. My son has saved some money during his gap year (prior to star ting uni in 2008). Is he better paying off tuition fees for 1st. year or saving money to prevent taking on larger student loan? Thanks for your help. Only second post I have made so be gentle with me. :eek:
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Comments
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either way round, he's going to have to pay the tuition fees & pay the money back.
personally, i was in a similar situation and i took on the larger loan as it doesn't really attract a high interest rate and used the money i'd saved up on something else (i was lucky that i'd saved up a LOT and bought a lovely car)
i'm sure not everyone will agree with that way of thinking, but if it's only being paid back at a small amount per month, i dont mind. i'd rather have money to spend now rather than paying back about £10 less per month for 25 years.helpful tips
it's spelt d-e-f-i-n-i-t-e-l-y
there - 'in or at that place'
their - 'owned by them'
they're - 'they are'
it's bought not brought (i just bought my chicken a suit from that new shop for £6.34)0 -
most students don't have a very clear idea of how much they will spend at Uni, so its probably safest for him to get the maximum loans for the first year and review the situation at the end of the year0
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Unless your son is living at home or entitled to a large maintenance grant, he will probably appreciate the savings to top up his loan as just the minimum loan is not enough to live on for many people. Of course it depends on his lifestyle and where in the country he studies but I would advise putting the savings in a high interest (accessible) account and getting the maximum loans.0
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Take out the full loan and put the extra money into a high interest acount. You'll end up making money as the SL is only 4% interest.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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candyflossing wrote: »Take out the full loan and put the extra money into a high interest acount. You'll end up making money as the SL is only 4% interest.
4.8% currently. Next years IR is going to be realised mid-April
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You can make additional repayment so maybe take out the max amount and then pay back anything that isn't used by the end of the year. Suppose it depends on what he wants to study as some things cost more than others (in terms of books/equipment etc)
Direct.gov.uk linky0 -
Thank you all very much. I suspected as much but wanted to confirm my suspicions.0
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