Deferred 3 year loan/Career Development Loan

M

Money bags

Guest
Hi folks,

I've applied to study a one year full-time postgraduate Higher Diploma university course and perhaps after that, a 2 year Masters degree. I'm classifed as a mature student, being aged 32.

Anyway, if successful in my application, I'm wondering if any banks or financial institutions offer long-term interest free loans (ideally for 3 years) whereby one doesn't have to start repaying it until after I would graduate.

In the UK, such loans called Career Development Loans (CDL) are available to UK residents with the purpose of leaving work, changing career and further study. I've searched the net, but found nothing worthy. I've telephoned an AIB student banking line but didn't get much information.

Does anyone have any information on this, which would be most appreciated!! :)
 
I've twice received loans for education purposes for which I requested deferred payments at the start of the loan. Basically, I borrowed the money but didn't start paying it back until a year later, after the course finished. The interest mounted up over that time of course! The first time I did it, the extra interest wasn't a problem because I paid it off a year early anyway.

My brother got a loan for travel purposes while on a year out from college, deferred it for several months, then started paying it back when he came home. He then went back to college and deferred again, paid back some more during the summer when he got a job, deferred again when he went back to college... It was an expensive way of doing things but I don't think it was difficult for him to get.

If you speak to the ordinary loan officer in your bank, you may be able to find out if there's a set period of time they'll permit deferral etc. Once you know it's possible to do it, you can then start figuring out how to pay the least amount of interest - if they do a special rate for education loans etc. If you had a variable rate loan, then if you had a part-time or summer job, you could even start paying something into the loan during the deferred period, just to help reduce your interest.

When I got my loans, both times I simply wrote a letter off to the bank stating how much I wanted, what period I wanted to defer the repayments for and why I wanted the loan. It was very simple.

Obviously everything depends on the amount you want to borrow and your credit history. I don't know how much attention the bank would pay to the type of course you're doing - as far as I was concerned, neither of the degree courses I was doing were going to do me much good financially for the immediate future, but perhaps the bank looked at it differently!

And also look into the whole area of government funding - it can be surprising how much help you can get, although it might depend on your present income. I received 3k towards my expenses AND over 5k towards my fees for the course I'm on now from the HEA - well worth investigating!

Good luck.
 
Thanks Harlequin,

Yeah, I've looked into Governement funding and they told me, that I'll quite possibly qualify for funding of the course fees of up to €5k a grant of about €3k or so - both of which are means tested.

Still, I was kinda hoping to get an interest free (deferred) loan for educational purposes - but it doesn't look like we have them here in Ireland. I just wanted to get a loan and avoid paying anything (interest included) while I was studying. Aw well...!

Anyway, I'll contact my bank, if and when I get accepted!

Thanks again!
 
Hi,

I agreed with you. Any way, your points of view make me thinking about some thing for my project.

Pls try to keep posting. Tks and best regards
 
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