Student finance/grants on Foundation Degree.

[kyle2711]

I know this has probably been asked a lot of times before, but i was wondering if anyone had some solid information on what kind of loans/grants are available on the Foundation degree course, and also what phases they are available etc. any help would be greatly appreciated.

[dawg]

Re: Student finance/grants on Foundation Degree.

Yes. ...but don't put "studying abroad" or "employed" on your form... because you aren't... you are a student like any other as far as student loans is concerned... keep it simple for the student funding data entry monkeys... they are awfully good at buggering things up you are a student at whatever college/university, you will have to include a sponsor letter... . You should be able to get some help completing your form from the college support staff. Don't expect it to be processed rapidly or correctly, or to get much in the way of communication. Get it in as early as you can, and make sure you scan everything you post them.

[kyle2711]

Re: Student finance/grants on Foundation Degree.

Ah ok. So i presume its only the maintainence loan that i'll be eligable for, as SSTG will be paying accomodation and course fees?

[Beef1992]

Re: Student finance/grants on Foundation Degree.

No one in my class (FD engine) were able to get any sort of large grant , the only one we could get was ?200 worth it though for the form we filled in. All the original Grants and loans were rejected

[Faust]

Re: Student finance/grants on Foundation Degree.

Just out of curiosity, all accommodation paid etc? how tight up is cash?

If someone was to live a no thrills life, beer money aside still, is there any need for student loans?

[GuinnessMan]

Re: Student finance/grants on Foundation Degree.

Not really. I never needed one. I didn't take SAAS or a loan and I lived alrightish with the odd night out here and there.

[AlternativeNavs]

Re: Student finance/grants on Foundation Degree.

No need...

Lived fine without.

The again we were looked after by SSTG.

If you have commitments then a student loan may help but not if you just want to p*ss it up against the wall or fund some lavish cars thirst for petrol.

Live within your means - it isn't free money.

[Faust]

Re: Student finance/grants on Foundation Degree.

Wise words, I am with SSTG and fresh out of school so my commitments will be the future.

I am also a tight bugger so I will likely be fine.

[Brimbo]

Re: Student finance/grants on Foundation Degree.

There isn't a great need for taking student loans out, the lower payed students ( around ?600 a month ) manage quite well, unless your wanting to get something large or have something in store , a large number of people in my phase are applying/ recieving these student loans since were on the HNC, some of them found out that you re-pay this when you pay tax, though in this career if you spend enough time away you dont pay these taxes, and apparentely after 8 years or so these loans are wiped clean!

[kyle2711]

Re: Student finance/grants on Foundation Degree.

To be honest i was thinking of getting a loan only to put it away, either in an ISA or similar savings account, and do that each year so that at the end of qualifying i have a decent-ish amount of money towards getting a mortgage on a house/flat (i've also got a little inheritance coming which i'll be combining with this). As student loans are the lowest rate of borrowing i'm aware of it sounded like a good idea to me, unless anyone knows otherwise?

[dawg]

Re: Student finance/grants on Foundation Degree.

Well, now you're asking for free financial advice from people who've got no qualifications or experience to give any!
Your guess is as good as anyone's...

[chris]

Re: Student finance/grants on Foundation Degree.

as an ex financial guy, I wouldn't bother. As my example shows its quite a lot of effort for not much money, but it is still something for nothing I suppose.

Some questions.

What rate of interest are you expecting to get on your ISA? What is the current stduent loan interest rate?

Work out the difference between the rates and multiply by the amount you borrow to see what return you will make.

As an example

Year 1. Borrow ?3,000 at SL rate 3%. Put in an ISA offering 4% gross. After accounting for the interest you will be charged, you make 1%x?3,000 = ?30

So if I borrow ?3,000 in the first year, an additional ?3,000 in the 2nd year and an additonal ?3,000 in the 3rd year

?3,000 borrowed ?30 return
?6,000 borrowed ?60 return
?9,000 borrowed ?90 return

Total return ?180 Not much to buy a house with

Some rich students in the past put all their student loan in the stock market during the boom period and got say 20% return rather than the 4% gross in an ISA. However if the market had crashed on them they would have made say-20% and still been charged SL interest-3% so -23% of ?3,000 so lost ?690.

Borrowing monet to invest in the stock market is dodgy. Personal investors should only invest what they can afford to lose.

Hope that helps.

[AlternativeNavs]

Re: Student finance/grants on Foundation Degree.

There isn't a great need for taking student loans out, the lower payed students ( around ?600 a month ) manage quite well, unless your wanting to get something large or have something in store , a large number of people in my phase are applying/ recieving these student loans since were on the HNC, some of them found out that you re-pay this when you pay tax, though in this career if you spend enough time away you dont pay these taxes, and apparentely after 8 years or so these loans are wiped clean!

Try 25 years after the April of finishing your course! or if you die or become disabled.

Also you must keep the loans company informed if you exit the UK tax system (many don't). The can also recover cost from you if after 25 years you re-enter the UK tax system and have been proved to have been earning above the threshold. Which is actually lower in some countries overseas.

Some may get out of paying it back, but just be careful as you never know what might happen in 10years. You may find yourself shore-based.

Also, don't forget that the Student Loan for the foundation degree only covers you for the last college phase... level 5 study.

[Steve]

Re: Student finance/grants on Foundation Degree.

Total return ?180 Not much to buy a house with

That was what I too assumed at first, but I think his plan is to ultimately use the student loan as part of the deposit on a house, declaring it as "savings" when applying for a mortgage. It makes a certain sense as a way to raise a deposit (or part thereof) and if it's used to leverage loan-to-value rather than make up a minimum deposit then it's a cheaper way to borrow than if the same sum was part of the mortgage.

e.g. on a ?100,000 house
?10,000 deposit from savings/inheritance
?10,000 deposit from saved student loan @ 3%
?80,000 mortgage @ 4.5%

rather than
?10,000 savings/inheritance
?90,000 mortgage @ 5%

[kyle2711]

Re: Student finance/grants on Foundation Degree.

Yea Steve, you've got it spot on, that was the ultimate plan, was hoping it would save a bit of money in the long run. Obviously its a bit early at the moment but just wanted to try and plan ahead a bit, especially where there is money to be saved.