Student finance England: A warning

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  1. #1

    Student finance England: A warning

    Just got off the phone with student finance England, it's been 4 month since I got my HNC and I've already got almost 200 of interest on my 4450 loan. These interest rates are pretty ridiculous!

  2. #2
    yeah 6.1%, which you should be aware of before taking out the loan.

  3. #3

    Deck Officer (CoC: Master)
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    Substantially less than a bank loan!

    The student loans are a good deal if you need them, as the interest rate is low and fixed with the rate of inflation. That doesn't mean you dont end up paying more back - that's how loans work & how they make their cash...

    For those starting out on the cadetship, generally, you should have minimal need to require a loan with a bit of budgeting and creative use of your banks overdraft facility as an emergency...

    Save up your cash when at sea, get a part time (or full time) job prior to starting, also remember that you don't need to go out every weekend - but ultimately it's up to you - as with everything in life READ THE SMALL PRINT, once you sign on the line, you're over 18, so your liable and "I didnt read / understand" is not a valid excuse.

  4. #4

  5. #5

    Parent
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    If you divide the capital by 24 you could pay it off at 185 a month. What did you do with any money you earnt whilst at sea?
    I have no idea what your reasons were for getting a loan whilst you were a cadet and I know some will have family or mortgages because they were 'mature' cadets.
    But if anyone thinks a loan is a way to have a good time, you need to consider the good times have to be paid for at some point, so think carefully before taking a loan out for anything.

    Student loans are different more of a tax really on income. Though you do have to be very careful about advising them where you are if not in the UK.

  6. #6

    Aspiring Deck Cadet
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    When i start my cadetship next year i going to do my best not to get a loan, however due to having kids and a few more add ons i may need to. However not something i am really looking forward to. Saying that tho, as mentioned above it is much cheaper than a bank, unless your as luck as one of my family members and manage to get a loan with mortgage rate interest. Also you should always read the small print of any loan, student loan or normal, otherwise you get might end up being stung.

  7. #7

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    That's the kind of circumstances where I can understand the need for extra money. The better paid cadets should with a bit of planning use their seatime money to fund their expenses for the college terms. Only the first term is the hard bit. Difference with a student loan is it's not counted on your credit but is for affordability for a mortgage. Depending on how old you are will depend on if you would ever pay it back when it's a student loan, as you say read the small print. There again, when a bank gives you a loan it's a contract and stays as written. The UK government have changed the rate and the threshold which has angered many. Lots of talk now of the threshold changing. Who knows what will happen in the future with SLC or the funding of higher education. .

  8. #8
    I'd have been much better off getting a student bank account and using a planned overdraft, most of them have 2 years interest free.

  9. #9

    Deck Officer (CoC: Master)
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    I think for many cadets if they don't have any assistance from their parents and are with the lower paying cadetships that an overdraft or student loan will be a necessity to cover the shortfall.

 

 

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