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 Post subject: Student finance
PostPosted: Sun Apr 21, 2013 8:08 pm 
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Joined: Wed Oct 13, 2010 6:48 pm
Posts: 115
I am now starting to look at student finance for my DD for the academic year starting 2014. I have some questions but can't find any answers on the various websites.

1. Has anyone looked into alternatives to the the gov. backed schemes that may work out cheaper?I have thought about re-mortgaging, with rates at 2.9%, these seem much favourable than the gov schemes.
2. If one decides to self finance is the tuition fee payable in full at the beginning of the academic year or termly. Does this vary with the universities?
3. Can you decide to borrow one year and not the next?
I've looked at the various student finance websites and used the calculator and quite shocked at how much my DD will have to pay each month as her salary increases as she progress in her career.
Has any one any ideas?
Thank you


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 Post subject: Re: Student finance
PostPosted: Sun Apr 21, 2013 8:17 pm 
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Joined: Fri Sep 15, 2006 8:51 am
Posts: 8119
layla22 wrote:
I am now starting to look at student finance for my DD for the academic year starting 2014. I have some questions but can't find any answers on the various websites.

1. Has anyone looked into alternatives to the the gov. backed schemes that may work out cheaper?I have thought about re-mortgaging, with rates at 2.9%, these seem much favourable than the gov schemes.
the trouble with this is that you would have to pay all that back if you borrowed it from elsewhere regardless of how much is earnt. if the student loan is not paid off in 30 years (and many won't pay it back) then it is written off.
2. If one decides to self finance is the tuition fee payable in full at the beginning of the academic year or termly. Does this vary with the universities?
probably varies, some I have seen require 50% at the beginning of the year and then the rest in installments
3. Can you decide to borrow one year and not the next?
yes you can vary the amount you borrow each year too
I've looked at the various student finance websites and used the calculator and quite shocked at how much my DD will have to pay each month as her salary increases as she progress in her career.
Has any one any ideas? try studying in europe - low or no fees but on the other hand no maintenance grants available
Thank you


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 Post subject: Re: Student finance
PostPosted: Mon Apr 22, 2013 7:27 am 
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Joined: Fri Oct 12, 2007 12:42 pm
Posts: 3818
Location: Chelmsford and pleased
American universities offer excellent scholarships: full fees, living expenses, a laptop and flights home.

A girl, who didn't make Oxbridge this year, has this package from a well known American university.


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 Post subject: Re: Student finance
PostPosted: Mon Apr 22, 2013 8:25 am 
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Joined: Fri Sep 15, 2006 8:51 am
Posts: 8119
agreed with Moved .. there are fab opportunities there - have to be organised ahead to do SATS etc


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 Post subject: Re: Student finance
PostPosted: Mon Apr 22, 2013 8:58 am 
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Joined: Tue Mar 04, 2008 2:28 pm
Posts: 2363
The student loan can be paid off early so you can re-finance it later on if you want to but in the meantime there are no repayments until the sudent finishes studying and starts earning over a certain amount.

As above - the amount seems huge but many graduates simply wont ever pay it back.

Guess it depends what your DC is looking to sudy and at what level -
US options for top students already mentioned,
studying in Europe probaly depends on subject and whether need a course that is taught in English (there are some) and living costs,
if they are less academic then there are other options to a full time University course that would avoid the big debts (eg apprenticeships can still lead to a degree as well)


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 Post subject: Re: Student finance
PostPosted: Mon Apr 22, 2013 4:07 pm 
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Joined: Mon May 16, 2011 1:05 pm
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Location: Reading
Have sent you a pm.


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 Post subject: Re: Student finance
PostPosted: Mon Apr 22, 2013 7:13 pm 
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Joined: Wed Oct 13, 2010 6:48 pm
Posts: 115
Thank you all for your responses. The American one sounds interesting, but I don't think I am ready to let her go that far! I know I will have to later.
My DD wants to do medicine.
I have already used the calculator to work out how much she will have to pay back over the years.
Firstly, the idea that some of it may be written off will not really work out for medics, unless they plan to take long career breaks, which in medicine does not really work out in ones favour. So I reckon ,starting from FY1 at a salary of @ £25,000 up to consultant level starting at £70,000 for a period of about 8 -10years, they will have to pay back close to about £250/ month in the " middle years" .The total amount they will pay back will be approx three times what they borrowed. It is the latter I am trying to avoid.
The Europe route, although cheaper a no- no at the moment.
I was just wondering if anyone had used an alternate method of funding to the government student finance scheme.


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 Post subject: Re: Student finance
PostPosted: Mon Apr 22, 2013 7:33 pm 
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Joined: Tue Mar 04, 2008 2:28 pm
Posts: 2363
got you!

I haven't checked your calculations but -

I think its a question of how quickly you can pay off the debt - its not so much the interest rate with the student loan company (currently 1.5%) as the time taken to pay it back under their standard collection rate that must be causing the amount repaid to be so high.


You should be able to find a 'safe' savings account that pays a higher rate of interest than that being charged on the student loan so it might be better to invest anything you could put towards avoiding your DC taking the loan?


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 Post subject: Re: Student finance
PostPosted: Mon Apr 22, 2013 7:36 pm 
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Joined: Mon Feb 12, 2007 1:21 pm
Posts: 11956
Quote:
student loan company (currently 1.5%)


Where do you get that figure from? The interest rate is 3% above base rate and interest starts accumulating from day one of the course.


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 Post subject: Re: Student finance
PostPosted: Mon Apr 22, 2013 8:27 pm 
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Joined: Mon Mar 15, 2010 2:45 pm
Posts: 4608
I think I have read on one of these threads before that those in the know don't necessarily agree with Martin Lewis on this occasion, but there are a few facts & figures here:
http://www.moneysavingexpert.com/studen ... es-changes

I am watching this thread with interest as I have a DD due go to uni in 2014 as well.


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