An advance on your wages (Student Loans Co.)

Member Name: adamdavid

Product:	Student Loans Co.
Date:	30/06/00 (13 review reads)
Rating:

Advantages: Extra cash comes in handy, low interest rate

Disadvantages: Debt is debt

I applied for my student loan a month before my end of year exams and I had a cheque waiting for me at the university about five days later. I was amazed at how quickly they dealt with my application. I took out a loan because the interest rate is low and you pay it back when you are earning a reasonable amount (about £800 a month) and the repayments are made via the inland revenue. At the moment the interest rate is 2.1% APR so I took out my loan to put in a high interest savings account (6.5% APR) This means that I can "make" a few extra quid just by having the money sat in a savings account. I intend to do this for the remaining two years of my course. The student loan is designed to help students get through university and, having been through university once, I know that any financial assistance is helpful. I can't really see any reason not to take out the full student loan.
The best way to think of your student loan is as an advance on your wages. You can have the money now, but you'll get paid less when you start earning. I would certainly recommend that you take out your full entitlement whether you need it or not. Invest it wisely and you will make a few quid.

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