Student Loans: How do they work? Is it easy to get one? What are the rates? Duration?

I am a mature student, with one year of a 4 year degree completed. To date I have funded myself using savings, which are running out and will be gone by Christmas.

My husband works and earns more than the average industrial wage and he pays all of the household bills, mortgage etc, so there is very little left over each month. He has a creditcard debt and pays the minimum monthly, and a bit more when possible.

In order to continue with my course I will need to pay a child minder €125 per week, plus will need petrol, food, books. I have a UK endowment fund maturing in 5 years, and need to pay £145 per month to that.

Before I consider getting a loan can anyone tell me if I will appear foolish, will the bank laugh me out of the place? Should I cut my losses with the endowment and cash it in now?

Do I stand any chance of getting a student loan? If so, do I apply for a year at a time, or, based on what I think I will need, apply for 3 years of funding? When do repayments start on student loans?

Any help of advice would be appreciated.

Many thanks

Betsy

I don't think you'll be laughed out of the place but I do think you're going to find it tough to actually get a loan large enough to live off for 3 years (and I'm not sure that banks are offering students a delayed repayment facility at the moment, you might have to start paying it straight away). Best thing to do would be to go into your SU, they'd have info on student loans there & could give you a heads up on how it all works

check out the bank websites - the student loans tend to be around the euro 2000 on a special deal and you don't have to start paying it back for 18 months and then if you clear it within 6 months you pay no interest- variations on this with every bank but thats the general gist of it.

but if you're running everything on a tight budget you need to work on clearing the credit card debit as you are prob paying 18- 20% interest on it which is huge over say a year or more. even if you've to give the family sausage and beans for dinner for a month its worth it to clear the debt !!.
Also I was a student for a really long time on a very tight budget ( 10 yrs- got a PhD ) and you can make a lot of savings by not buying the books. It will save you a fortune as once you get past first year you usually only use a couple of chapters in a book whatever your course yet it will still be on your book list. and have a chat with your lecturers and they should be very helpful in helping you pick the 'investment' books you will need in the future.

so use the library, find a good photocopy place and copy the bits you need.
trust me you will save an absolute fortune.

good luck with your studies !

what was your working situation before you went to college? were you unemployed? could you have take up the BTEA (back to education allowance)? it might be too late now but see what you could have been entitled to and you might be able to see if there's a way of getting that.
are there any grants you can apply for that you should have gone for last year? check with your local VEC and/or county council.
also is there a creche attached to the college which might have cheaper fees

BetsyClark said:

I am a mature student, with one year of a 4 year degree completed. To date I have funded myself using savings, which are running out and will be gone by Christmas. ....

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Have you considered the possibility of obtaining your education in an other way? What I'm thinking about in the OU These days transferring credits between EU universities is possible, so perhaps you could get credit for the year already done and then go on full time from home via the OU to complete the degree, or perhaps even transfer back again to do the final year where you are now. Just a thought...

Jim.

BetsyClark said:

I am a mature student, with one year of a 4 year degree completed. To date I have funded myself using savings, which are running out and will be gone by Christmas. .....

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BetsyClarke,

Well done on completing year one, that is a great achievement. I went down this route myself and I understand how much more difficult it can be for a mature student.

Depending on which UK company your endowment policy is with it may or may not be worth your while cashing it in. Many of those presently maturing are facing serious shortfalls, however, 5 years is a fairly long time and things could improve. You would need to contact the company and get a surrender value and then do some research to see if it would be feasible hanging on to it.

I would suggest you try your local credit union, they used to be great for helping students out in the past but I don't know what the current situation with them is.

Good luck witht he rest of your studies

BetsyClark said:

I have a UK endowment fund maturing in 5 years, and need to pay £145 per month to that.

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It makes no financial sense for you to be continue to invest in something like while borrowing for your day to day living expenses. You should cut this investment asap.

How much are you planning on borrowing? How much will the repayments be. If your husband cannot afford to pay back his credit card debt and is already struggling do you think it is a good idea to get into more debt. In any case presumably it is your husband who should be applying for the loan as you have no income? Think it would be advisable for you to do the money makeover thread as it's impossible to give advice unless all financial details are disclosed.

Also you need to clarify how much in in the endowment policy and exactly what it is.

You will not be laughed at, and you will get it, esp if you already have a year under your belt as a student. I bet you would be approved fairly quickly should you apply.

Complainer said:

It makes no financial sense for you to be continue to invest in something like while borrowing for your day to day living expenses. You should cut this investment asap.

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FYI I sought a surrender value for my endowment, and was pleasantly surprised at the value. You are right Complainer, and I will be surrendering the endowment, which will clear debts, allow me three years in college, and allow my husband to save.

Many thanks

Betsy

BetsyClark said:

FYI I sought a surrender value for my endowment, and was pleasantly surprised at the value. You are right Complainer, and I will be surrendering the endowment, which will clear debts, allow me three years in college, and allow my husband to save.

Many thanks

Betsy

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Excellent news Betsy. Good luck with college