Student Finance v Loan
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Beazeley
Posts: 1 Newbie
Struggling with finances atm and have been paying son's accommodation fees up to now (about £1400 per term). Is it better - more cost effective - to pay fees through student finance compared to getting a loan?
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Comments
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It depends on how much your son will earn. If he ends up in a low paid job then he'll never have to pay anything back so obviously that will be cheaper. If he's going to be in a high paying profession AND you can get a loan at less than 6% or so then that will be cheaper.
You are probably best off to take the student loan. If he is in a high paying job later he can pay it off not you !0 -
Does your son have a tuition fee loan? If so then by taking a maintenance loan, the total amount will increase but repayments will stay the same.
If he eventually earns enough to be repaying the loan in full, then it means he will be paying back for longer, but otherwise the loan eventually gets written off, so it may actually not cost anything to take a maintenance loan.
All depends on his long term earnings potential.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Would your son be eligible for a Maintenance Loan ? What is your household income ?0
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