Student Loans

Discussion in 'Off-Topic Chat' started by meandmycornet, Nov 8, 2005.

  1. meandmycornet

    meandmycornet Active Member

    Are student loans worth it or not?

    I'm just applying for one (probably), as I only just found out I could get one!

    So you students, do you all have loans? and those people who's graduated are you finding paying your loan back ok?

  2. 2nd man down

    2nd man down Moderator Staff Member

    I never had a student loan. I always felt I got the job done better myself that let some spotty, half educated, pot noodle filled and borrowed young person get it wrong for me, only to have to correct later. :rolleyes:


    That's not what you meant is it?

  3. Crazysop

    Crazysop Member

    I only borrowed about £6000 on my student loans. but 6 years and a few deferments later I'm still paying the thing off! It's driving me mad!!!!! It only took 4 years to spend it and a lifetime (so it seems) to pay the infernal things back! Personally I wish I hadn't bothered, but I do recall at the time really needing the cash quite badly.
    If I were you i'd weigh up wether you can manage without or not, because that will be the ultimate deciding factor I suspect.
    I beleive the newer loans are payed back in a similar way to the way you pay tax and Ni these days which must be better, mine are a fixed monthly rate, which is a ****** 4 me as a supply teacher, if i've had no work!
    Good luck with whatever you decide!!!!!
  4. VenusTromster

    VenusTromster Member

    Unfortunaly the cost of fees and living (rent not just beer!) meant that I didn't really have much choice but to take one out while I did a degree for 3 yrs. I suppose its better than not being able to go to uni, but thats just my opinion. I've just started a PGCE at the start of september 2005, but I'm still waiting for my loan assessment to come through - its driving me mad!! Don't they know I have bills to pay?!?!?
    I guess they are not too bad, but I know I'm going to be paying it off for a long time, however that life I guess!
  5. meandmycornet

    meandmycornet Active Member

    well i'm not at uni, i'm study for a foundation degree at my local college, meaning I get too live at home! From the little 'calculate how much you'd be entitled too' thing on the student loan website i'd get £2490 per academic year i think.
  6. sparkling_quavers

    sparkling_quavers Active Member

    Unless you can get funding from elsewhere (sponsorship or parents!) or perhaps you are living at home and have a part-time job I think you will really find you can't afford not to take out a loan. There are no grants (bar a few courses) so the funding has to come from somewhere. I had a full student loan (I went to uni just after the no grants and loans system had started). I didn't really get money from my parents, they couldn't afford it and was living away from home. I came out of uni with about 13,000 debt. This was living purely on my student loan and an overdraft of about 2000. So basically I lived (including paying rent etc) for 4 years on 15,000 which is pretty good going! It took me 3 years afte graduating to actually pay off my overdraft of 2000 because I simply was only really earning enough money to break even, now I have got a fulltime job on a pretty decent wage so I am now dealing with student loan repayments. Mine work out at about 100 pounds or a bit more a month so it is a reasonable amount and I will probably be paying that off till I am about 50. I don't see it as a massive issue once you are on a reasonable wage as long as you budget for it in your monthly outgoings. In reflection it may mean that you have to take a mortgage for 100 less a month/smaller car but 100 a month payback will not cripple you as long as you balance it up with what else you can afford (car loans etc!). It is terrible that young people are getting into so much debt but if the government wants 50% of young people to go into HE then what else can happen? Bring back funding for the vocational options and grants for those intelligent enough to actually do an academic degree, make it harder to get into uni/close down the uni's running wishy washy degrees and then funding would be avaliable for those who are the brightest - not most priviledged - most intelligent whatever background they have.
  7. geordiecolin

    geordiecolin Active Member

    I say get it. If you're living away from home, unless you are moddycoddled by parents you'll need it as an essential. I would not have been able to get through uni without mine (all £12k over 4 years of it) and I worked part time.

    Even if you aren't living away, get it, stick it in an ISA, pay off what you owe in one lump sum when you finish uni and pocket the interest you've gained......

    I've yet to start repaying mine but it comes straight out of your wages so don't really see that money anyway, its like an extra tax!
  8. Big Twigge

    Big Twigge Active Member

    Take it, but try and choose the right course (unlike me!) otherwise you end up with 5/6 years worth of loan...which is quite a bit, especially when I'll only be on teacher salary when I graduate!!
  9. brassneck

    brassneck Active Member

  10. Andy_Euph

    Andy_Euph Active Member

    It all depends whether you need it really rather then if you want it, personally I couldn't go to uni without a loan, majority of it pays for my accommodation and whats left (plus overdraft) I use to live on, its not a lot but its enough.

    Mind if you live at home and have other means of income then maybe it might not be a good idea, as after all it is debt you'll be getting into and probably debt you don't really need.
  11. Naomi McFadyen

    Naomi McFadyen New Member

    Yes they are worth it :) Had a loan for last 2 years of uni.... wishing I'd kept the money aside for my MA degree!! :lol: (evil people not having student loans for us MA students!!!)
    So, yea, graduated... having to pay it back? Nope... and the chances of me earning £15,000 are pretty slim at the mo anyway ;-)
  12. yogi1000

    yogi1000 Member

    I wouldn't have been able to go to Uni without a student loan - I had to take one out for each year of my undergraduate degree (3 years) but haven't started paying it back yet because I'm still there doing postgraduate degrees!

    The whole point of the student loan company being an organisation is that they charge a very low interest rate compared to all high street banks - and believe me i looked at many - and you can pay the loan back over a lifetime if you cannot afford the payments - you don't even start paying the loan back until you earn over £15000 p.a. i think but that may have changed since I last looked at the details.

    I think you have to weigh up the options of tuition fees, help from other sources (including parents who helped me a great deal), and living costs. Each case is different to the next so I wouldn't like to comment on what you should do - just to say that you'll be hard pressed to find a better rate of interest on a loan from any high street bank, plus the payments may well be at a higher rate and more frequent too.
  13. brassneck

    brassneck Active Member

  14. vonny

    vonny Member

    I had to take out a student loan for each year i studied at university:( I am not neccessarily saying it is a bad thing because without these loans i wouldn't have been able to study in HE. I was fortunate that i didn't have to take out further loans etc for childcare because that was taken care of by family and friends who used to take and pick my 2 youngest children up from school :) .
    Fiona i would consider taking out a student loan because you don't know what stuff etc you will need to buy over the academic year for your studies, and of course you could treat yourself to a drink or two i the bar ;)

    Yvonne x
  15. Dave Euph

    Dave Euph Member

    Take it, I'm lucky and receive a decent amount of support from my parents, but I'd still be forced to live in poverty without it. Paying it off in future years is going to be a major bum, but I really have found I have no choice!
  16. brassneck

    brassneck Active Member

    Does studying music with performance nowadays become more of a financial burden than studying other subjects? If you get a student loan and have very little (if any) external financial support, how is it possible to take on part-time work to supplement income if concerts and extra rehearsals have to be included?
  17. Lisa

    Lisa Member

    Seeing as you're living at home and seeing (from your profile) that you have a part-time job, I wouldn't have thought you would need a loan. My student loan goes mostly on rent and bills!:( But I would take it out anyway and put it in a high interest account and not spend it! :)

    TIMBONE Active Member

    Having a daughter who had to make herself bankrupt, I think it is something to go into with your eyes open. Obviously, the days of grant maintenance, (which is long gone), has made it necessary to secure income from elsewhere. It is unfortunate that students now have to seek part time work to fund their studies, but my advice is, borrow as little as possible. Remember, (and I know I sound like an old .... here, but I speak from experience as well), a student loan is to supplement studies not social life.

  19. stephen2001

    stephen2001 Member

    As Colin said earlier, get it.

    If you are lucky and don't need it, you can put it into an ISA each year and make a little bit of money thanks to the better interest rate.

    Whilst I don't like the principle of the Student Loan, you don't start paying it back until you are earning £15,000 per year, and it is taken straight out of your wages. With other lenders, you have little choice in when to make repayments and have the hassle of arranging payments yourself.
  20. Ruthless

    Ruthless Member

    I know I am older and left Uni over 10 years ago now but I survived on the money from my parents - £2,300 pa - and anything I earnt in the holidays. I did not get a grant but admittedly I did not have to pay tuition fees (My rent was high though at £35 pw with all bills on top) I did an engineering degree which unlike arts degrees have lectures everyday from 9 till 5 ;) this left very little time for work during term time. Because of my comitment to banding I also did not go home during the holidays I stayed in sheffield and supported myself. I still managed to do this and only have a £500 overdraft at the end of 3 years and still have a very good time!!.

    After talking to friends at work who have been more recently when loans were available, I would still advise against any loan unless you really need the money. People I work with now feel it is already a noose around their neck that they will not pay off for years even though they have been paying back for 5 years already. Going into your first job knowing you are already £10k in debt must be awful.

    Surely you also need to be careful about not paying back till you earn more than £15k as the interest still goes on each month. If they will only let you pay back a set amount each month even if the interest is lower you may pay more back in total because you have the loan for longer. Look at how much you need to borrow, how much interest you will have to pay each month and how quickly you will able to pay it back over. You can then work out how much the bank/government will charge you to borrow the money, that may make you reconsider when you look at the cold hard figures of how much it will really cost.

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