DS is very fortunate and has a lump sum of inheritance saved/ invested which could more than cover his uni fees and living expenses over the next 3 years. (He knows he is very very lucky in this respect.)
He is going into a field which is likely to be high paid (IT/computing) and all the online calculators suggest that he probably WOULD end up paying all his loan back.
At the moment his savings/investments earn probably a little less than 6% a year, due to the balance of savings accounts and ISAs etc.
In my mind, it is madness to borrow money at 6% and be earning less than that from your savings? But people who are aware of his situation keep saying he should still apply for a student loan (but seem unable to explain to me why...)
Even if he was to pay them off as soon as he graduated, it would still have cost him 6% p.a. in accrued interest?
Using his inheritance wouldn't totally deplete his savings either. He'd still have a lump sum left if he wanted e.g. a house deposit in the future.
Am I missing something here?
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DS has inheritance & could cover uni fees. Why should he still get a loan?
94 replies
SadAboutTheBoy · 19/04/2018 11:13
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