A very good idea! (Student Loans Co.)

Member Name: Alternum

Product:	Student Loans Co.
Date:	23/07/00 (26 review reads)
Rating:

Advantages: Low interest rate, salary-linked repayment system

Disadvantages: Paid by termly instalments

The ubiquitous student loan. An extremely good idea in principle - it gives students the opportunity to borrow at least £2700 per year, at interest rates of around 2%. Now, this makes financial sense to anyone - whether they actually need to take out the loan to survive university, or not. If they do, then it provides a valuable aid, and at the end of university the loan is only repayable, at the aforementioned low interest rates, once the graduate has reached a certain salary level. If the student doesn't need, per se, to take out the loan, then the prospects are even better: take out the loan and put all the money in a high-interest account. Then, at the end of university, pay back what is owed, and pocket the rest of the interest earned - possibly as much as £500. So whichever way you look at it, the loan is a good thing. Everything is handled fairly efficiently with only a couple of forms to fill in, and the only gripe is that it is paid by termly instalments rather than as a lump sum. But nonetheless, this could be the only chance to get some cheap money you ever have!

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