Got a credit union loan to finance secondary and college fees, after remortgage refused

I wasn't aware that anything like this exists!

It looks like the BoI option "Preferred faculty loan" is only available for students who are in second year and beyond - I can't post the link as I haven't met the minimum requirements yet. As we've already paid the year 1 fees, this is certainly worth following up next year though. Hopefully BoI will still be offering this.

It looks like AIB aren't doing the interest free loans anymore - can't post the link - but an extract from the article from the Irish Independent on September 11 2016 says "AIB no longer offers interest-free loans of up to €10,000 to certain students - such as medical and pharmacy students. This loan, which was available last September, was one of the best student loan offers at the time" I checked the AIB site too and they offer "Student Personal Loans" with a rate of 8.15% and a "Student Contribution Loan" also at 8.15%.

Thanks again RedOnion!

Ah yes, AIB have dropped theirs. Check if they still have the interest free overdraft. I think the amount is only 1k.
I think BoI also have a 1% loan, but again only a small balance.

The idea of these was that student builds up a large balance, and bank then gets to charge a high rate, but in practice a lot of the time they get paid off by a parent, or refinanced cheaper elsewhere.

Gordon Gekko said:

You should be able to access 25% of the pension fund (circa €100k) tax-free at age 50 (which isn't that far away); might that be an option to consider?

Click to expand...

Hi Gordon, I've looked on the revenue website but cannot find anything in relation to drawing a % of pension over age 50.
Can you provide a link or source to get more information on this subject?

ivannomonet said:

Hi Gordon, I've looked on the revenue website but cannot find anything in relation to drawing a % of pension over age 50.
Can you provide a link or source to get more information on this subject?

Click to expand...

For the OP, it's in respect of a previous employment which means it's likely to be in a Buy Out Bond, a PRSA, or still in the original scheme as a deferred benefit. All of these would generally permit access at age 50 in such circumstances.

Some trade unions or Credit unions affiliated to them offer scholarships to university to members who apply.

It can be based on exam results or lottery.

Marion

Hi Marion. Yep, we've applied for this with our Credit Union.

Marion said:

Some trade unions or Credit unions affiliated to them offer scholarships to university to members who apply.

It can be based on exam results or lottery.

Marion

Click to expand...

do you mean credit union affiliated to trade union or just a normal credit union?

Hi mtk - my credit union is just a "normal" one i.e. not associated with any trade union. They're not offering a full scholarship; just 6 * €1.5K prizes to students who are members of that CU. According to the blurb about this "the draw is not academically based and all entries have a fair chance of winning."

Hi all, just to close this one off.

I approached BoI, AIB and UB about possible re-financing and all said no as I wasn't 6 months in my job. They would have accepted 2 years audited accounts, but as I was working on contract for less than a year, I wasn't able to provide these either.

I went to my Credit Union (as suggested by cremeegg), explained the situation to them and I had the money within 48 hours after I provided them with a copy of my work contract, pay slips and the usual bank statements. The only "downside" to this is that my CU wouldn't give me their Student Loan rate of 6% so I had to take the personal loan rate instead.

Definitely worth talking to credit union, I borrowed €25k a couple of years ago, @ 5% with just €2k on deposit. I do think they are making case by case decisions, the traditional approach of 25% savings doesn’t necessarily apply. Lucky kids

Ger1966 said:

The only "downside" to this is that my CU wouldn't give me their Student Loan rate of 6% so I had to take the personal loan rate instead.

Click to expand...

He Ger

Thanks for the update - I have edited the title of the thread.

Can you tell us more about the loan?

Is it for one year's fees only?
Did they require you to hold shares?
What is the interest rate?

Brendan

A bit late seeing this thread but we are in a similar situation with one extra child, a lower income and a bigger mortgage! But children attending a non fee paying school so don't have those fees and we've also got the 3rd level Registration fees covered by Susi. Our oldest son is in third level and because we live in rural Ireland we have accommodation costs which are a killer. He does work and pays for a lot of his costs like food, travel, phone etc but we cover the accommodation costs. Our option is to take an international student who attends our local secondary school and what we get for hosting him covers our son's accommodation in Dublin. We may have to take a loan at some stage as our next son is doing his Leaving Cert this year so hopefully will have 2 in college in September. So far taking a student at home has worked well for us and maybe be of interest to someone in the future.

Hi Brendan,

Yep, loan was only for second part of child #2 and #3 fees. As this was for secondary school fees, and not third level, I couldn't get the Student Loan rate of 6% but had to take a personal loan rate of 10% instead. They suggested that when I come looking for the next part of the loan in September, that I should get child #1 and child #2 to apply for a loan in their own names (they've had CU accounts for years into which I lodge €10 per month) and they'd get the student loan rate, but I'd make the repayments. By doing this, they'll also be building up a repayment record with the Credit Union.

I lodge money weekly to my CU account and this is being used as "security" against the loan.