Should I apply for a student loan even if I can afford to pay for it myself? (UK)?
I am starting a masters in engineering in September at the university of Bath in the UK.
I am unsure whether I should apply for a student loan, since I have enough money saved which I could use to fund my tuition etc…
But, the student loan does seem like the cheapest loan you will ever get and I would like to be able to save the money I have for use as a deposit in my first house later on.
Should I get the loan?
STeve
"Getting in debt is not too smart." Well, I am going to have to get a mortgage when I buy my first house anyway, so I will have to be in debt at some point. So I might as well try and make the debt I get into the cheapest possible.
"edit: And what that makes more sense to you does it? Whether you’re getting a mortgage or not, having more money to pay off isn’t really helping you."
Student loans aren’t like normal loans, they have much less interest and you don’t need to pay them back untill you are making at least £15000 a year.
and keeping the money so my mortgage would be small leaves me with the same amount of debt in the end. But with a lower effective interest level.
YES! A student loan is the best possible loan you could get and is tax deductible. If you are looking to get a home, car, etc anytime soon it is much better to be paying off a student loan than a car loan or unable to put a decent down payment on a home. You could always get the loan and if you have enough in savings after everything just pay it off early.
No. Getting yourself in debt is not too smart.
edit: And what that makes more sense to you does it? Whether you’re getting a mortgage or not, having more money to pay off isn’t really helping you.
References :
YES! A student loan is the best possible loan you could get and is tax deductible. If you are looking to get a home, car, etc anytime soon it is much better to be paying off a student loan than a car loan or unable to put a decent down payment on a home. You could always get the loan and if you have enough in savings after everything just pay it off early.
References :
My Boyfriend the Accountant
While pursuing studies, students need to commute and need a car to save time. It is important because many students take up part time jobs to sustain themselves, and pay off some portion of their study fees, and time is always a constraint. Depending upon their specific needs, many moneylenders offer auto loan for college students to make commutation affordable. These types of special loans offer some advantages which are narrated below:
Easy Approval
Students generally do not have credit ratings since majority of the students are young and starting out in life. They have not done much shopping, and so their credit history does not indicate years of purchase and loan redemption. Lenders know about this, and so they are more lenient while providing the credit facilities. Even if the applicant might seem "doubtful" as far as repayment of credit is concerned, the lending institutes often give a benefit of doubt. That is why the student auto loan with no credit history is possible, and gets easy approval.
Lower Interest Rates
Another distinct advantage that students enjoy while availing their auto loans online is that the rate of interest charged for their credit is low and easily afforded. The net payable interest amount is minimal. Also the monthly loan repayment amount is less, so it becomes easy for the student to redeem. In some cases, the lenders also provide further leeway in the car loan redemption, thus providing flexibility and making things easier and "custom made" for the applicant.
References :
http://theloansonline.blogspot.com/
scholarships.onlinewebshop.net – it provides some tips about applying to US federal and state grants for college students.
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