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  1. #1
    Join Date
    Oct 2008
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    4,185

    Adding another £7000 to my loan!

    So ive been through uni, have a degree in film and in debt to the tune of roughly £12,000, lovely.

    Im now thinking about applying for a higher education teaching course which will allow me to teach film at sixth form level.

    However the fee for this is £7000, totalling me at £19,000 in debt!!!

    I know that doing this will put me on the right track to having a good career but it just dawned on me how much that is. I have some money saved up that i was planning to put towards paying off my exisiting debt but it seems pointless now that that figure is going to be increasing by more than half!!

    On the other hand, where am i going to be in a years time? Probably still looking for work exerience with barely anything decent on my CV.

    Should i just say that the money doesnt matter and just go for it?
    Love Is Not Love That Alters When It Alteration Finds

  2. #2
    Join Date
    Jan 2009
    Posts
    200
    Is there no funding you can apply for? Not sure how the system works these days, but there used to be PGCE bursaries which would pay for your fees and some living costs.

    Is the money you spent on your first degree through student loans or a bank? Just thinking if it's through student loans you would get the grace period of having to earn 'x' amount (not sure on the current amount) before you'd have to repay, which might make things a bit easier. You could effectively 'forget' about that loan until you qualify and are on a half decent salary and use the money you've saved to fund the further study. Also, would you be able to work part-time and study part-time? That might also mean you would be borrowing less. There used to be career development loans with half decent interest rates, so that could be another avenue to explore.

    If you're existing loan is through a bank, it would be worth talking to them about consolidating that loan with the additional borrowing you need. There seems to be a focus on lower APR's on loans in excess of approx £6k for a lot of the major banks at the moment.

  3. #3
    Join Date
    Sep 2009
    Location
    London
    Posts
    465
    Hi there Lexi99,

    It's hard thinking about the future with all this debt over your head. I am in the same position so I know how it feels! But I think it's great that you want to pursue a career of teaching which can be very rewarding.

    fibberygibbert raises some important things to consider so I will not repeat them.

    I have found this site on the education.gov.uk website - http://www.education.gov.uk/get-into...e-funding.aspx

    It's about funding specifically to teaching. They also have a phoneline that you can call for more info about getting into teaching - 0800 389 2500.

    Have you considered other course providers that may offer the course for cheaper? For example the OpenUniverstiy or have a look at the WhatUni.com website.

    Lastly I would encourage you to preserver if teaching is what you really want to do. Don't be put off by things at such an early stage. Goodluck

    If I'm honest, the handbag I would probably like most is a big, hollowed-out potato with handles on it. A giant King Edward with satchel straps. Then, in times of crisis, I could bake and eat the handbag, and survive the winter.
    How to be a woman, Caitlin Moran, 2011. Ebury Press.

  4. #4
    Join Date
    Oct 2008
    Posts
    4,185
    Sorry I should have been more specific.

    My existing debt is with student finance. I am able to wait until im earning 15k or more to pay it back, but all that while interest is building up (im not sure what the rate is, I have it written down somewhere). But you're right, if its not too bad it may just using my savings to pay for this new course. Also, I am working full time at the moment but I will be able to cut my hours down to part time no problem, so Ill be able to work 2/3 days a week. Its something I guess, but wont have much money coming in.

    Also, thanks LittleOne, those links are really helpful
    Love Is Not Love That Alters When It Alteration Finds

  5. #5
    Join Date
    Sep 2001
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    Vvardenfell
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    2,495
    Would the new debt be charged at the same rate as the debt you incurred as an undergraduate from Student Finance?

    The interest on the Student Finance type of loan is charged at RPI so it's basically a free loan. In real terms you pay back what you borrow. If you are getting further funding at that rate that's a fucking good deal.

  6. #6
    Join Date
    Oct 2008
    Posts
    4,185
    Quote Originally Posted by minimi38 View Post

    The interest on the Student Finance type of loan is charged at RPI so it's basically a free loan. In real terms you pay back what you borrow. If you are getting further funding at that rate that's a fucking good deal.
    I dont know what this means. Student finance charge interest so how is that a free loan?
    Love Is Not Love That Alters When It Alteration Finds

  7. #7
    Join Date
    Apr 2011
    Posts
    665
    I've sort of been looking at the same thing, I graduate this year (and in the same amount of debt!) and was looking at maybe primary school teaching, but at the uni I am at now they offer a funded teaching course but it's only for teaching years 16+, so some places you may be able to get funding through the uni, most of the time they are part-time courses though which take a bit longer to qualify.
    I found this about interest rates, http://www.direct.gov.uk/en/Educatio...rted/DG_199403 which is interesting because I was told there was no interest on student loans but seems like there is depending on when you started.
    Learn from yesterday, live for today, hope for tomorrow

    “People who are homeless are not social inadequates. They are people without homes.”

  8. #8
    Join Date
    Oct 2008
    Posts
    4,185
    Ive just seen this:

    You?re charged interest on your loan from the first payment until the loan is paid back in full.
    Soooo, interest doesnt start until i pay any back? If this is true, that would be sooo good, cos the interest building up is what im worried about
    Love Is Not Love That Alters When It Alteration Finds

  9. #9
    Join Date
    Apr 2011
    Posts
    665
    Seems like it, only if you earn over 15k and start paying it back, the interest is included in the repayment, quite good really
    Learn from yesterday, live for today, hope for tomorrow

    “People who are homeless are not social inadequates. They are people without homes.”

  10. #10
    Join Date
    Jan 2011
    Location
    Waitrose
    Posts
    2,335
    Your current loan from the Student Loans Company is effectively interest neutral. You are charged interest, but the interest rate charged is inflation.

    To explain this simply, this year a basket of goods costs £100 (as an example). With inflation at 5% next year the same basket of goods will cost you £105. It's more money but the relative worth remains the same. You borrowed a basket of goods from the SLC and you will pay a basket of goods back to them.

    Interest, by the way, is charged from the day you take out the loan until the day you repay it. Interest continues to accrue during your studies and at any point you're not earning over £15,000pa.

    Bear in mind that the student funding packages are changing this year. It isn't a case of "extending" your loan from the SLC, you would take a new loan out on the new terms in addition to your existing loan. If you look on directgov or on the DfES website you will get a better idea of how much a PGCE will cost you.

    As with any type of student loan, it is only repaid if you are earning above a certain threshold and it is deducted at source from your wages. In just about every way it is a tax not a loan and it is much better to think of your student borrowing from the SLC in this way. It's not a "debt" in the traditional sense.
    Can you hold me like you held someone you shouldn't have let go?
    Can you keep me deep inside like the regrets that burned a hole?
    Can you love me like you loved someone you loved so long ago?

  11. #11
    Join Date
    Oct 2008
    Posts
    4,185
    Thanks everyone I think Im getting somewhere with this now. Im looking at the education.gov.uk page and i dont think i can get a bursary or anything because teaching film isnt on a high list of priorites, but I can get a tuition fee loan, just as Arctic Roll pointed out, it will be on different terms than my first loan.

    Just need to have a big think now about when/how to pay for it all
    Love Is Not Love That Alters When It Alteration Finds

  12. #12
    Join Date
    Aug 2004
    Location
    Here, there, everywhere
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    3,597
    Don't let having to take more student loans stop you from doing what you want to do, repayments are relative to earnings and as said interest is applied only to cover inflation so if wages rise with inflation it makes little difference in real terms...you will actually pay back slightly more than borrowed because the way the interest is applied but that's pretty negligible.

    Go for it.
    Narrow souls I cannot abide,
    There's almost no good or evil inside.

  13. #13
    Join Date
    Oct 2008
    Posts
    4,185
    There is funding I can get but since I already have a £12,500 loan to pay off as it is, and the interest is so huge on this second loan, my mum and grandad are going to help me fund it with the money we originally saved for paying off the first one. Oh well, swings and rondabouts.

    Oh and i've sent in my application!
    Love Is Not Love That Alters When It Alteration Finds

  14. #14
    Join Date
    Oct 2005
    Location
    Vietnam
    Posts
    11,784
    The question you need to ask is whether the interest you can earn on the money you have saved is greater than the interest on the loan. In the case of your original loan, this is fairly straightforward. Even if you have the full £12,000 in cash in your bank, you would have to be insane to use that to pay off your student loan before you legally have to. Why would you pay off a debt with an interest rate of 2% early, when the money your using could be earning 5 or 6% in a bank account? Or could go towards other tuition fees or perhaps a deposit on a house? A student loan on the old terms and conditions (I don't know about the new ones) is effectively free credit, so there should be no rush to pay it back even if you have the cash saved up to do so. There are just so many better uses for £12k than paying back an interest-free loan early.

  15. #15
    Join Date
    Oct 2008
    Posts
    4,185
    Yea, exactly, I've compared the interest rates and the interest on the loan is still higher than what i would be saving but we're just going to pay off the new fees straightaway and get it out the way as, like you say, the old loan isnt too bad, relatively speaking.
    Love Is Not Love That Alters When It Alteration Finds

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