Student debt - is it worth it?

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Hi,

I'm in my second year of uni, but I joined the Army at 17 and went to do a degree after. I'm committed to completing another 5 years after my degree. I'm still eligable for a student loan, and took one out, with the intention of putting it in a high interest account, paying it back when I finish, and getting some free money. However, I'm really struggling. I have a few thousand left, but I'm really having to budget myself. I'm sick of not having a car, eating rubbish food, not going away, and getting scared at my phone bill. I still haven't touched my student loan, there's £6000 of it sitting there. I have been having problems with gambling etc, but came out with a profit and have had myself blocked from the sites, so my finances are pretty settled at the moment. I'm fine for rent and bills.

Should I:
a) Keep scraping along and finish my degree debt free.
b) Live like a king, I'll pay it back fine in future years.
c) Balance the two, and use what I need but stick to a budget.

The Army still pay me, but I only get paid for what I do. My main job within the Army at the moment is on the skydiving team - I get paid per day when I go away training or competing, but this is something that is kind of weather-restricted, so I won't earn from this until March. Then I just get paid too much and it's all OK.

I want a new TV, and a car (my old one died and I decided I couldn't afford a replacement).

I'll be starting again on 24k after uni, rising to 30k in about 2 years.

What do you all think?
 
I think I would have spent it all already but if you can possibly avoid spending it then you should.
 
I'd blow the lot by Jan 2nd no messing but then that's why i haven't got **** all now.
If i were you i would budget better with what you have. You seem like a sensible lad so stay true to yourself & build something better for yourself for the future. The pay back is massive long term. The short term gains kick you in the kahoonas for years later.
 
Please stop changing your name, Santa.

I could avoid it... but I think right now £1000 is a massive amount of money that could double my quality of life for a couple of months, in 5 years time £1000 will just be 2 weeks wages.
 
Personally if I was in your situation I'd balance the two, don't live like a king, just enjoy yourself, a small amount of debt won't hurt you if you'll be able to pay it off quickly enough.
 
£500 out now and then, put the rest into an esavings account and set up a automated bank xfer every week for a small amount (say £75)

If that makes sense
 
stevenazari1 said:
put all your loans in an isa. come on of university debt free and 4k better off.
Click to expand...

4k better off by putting it in an ISA?

Maybe my maths is wrong but:

Year 1, 3k ISA = around 5% interest = £150
Year 2, 6k ISA = around 5% interest = £450 (300 + 150)
Year 3, 9k ISA = around 5% interest = £900 (450 + 450)

£900 Total?

Or am I missing something?
 
Live like a king, its christmas and you will be working more than likely for the rest of ** life!

Most of it anyway.
 
Balance it, something could always go wrong meaning when you finish Uni you may not have the means to pay it back as quickly as you think.

Make sure you have enough money to buy food, set some aside each month to maybe buy yourself something small, and leave enough money for going out etc.
 
Option C, don't stop yourself having a good time. You've got to take full advantage of the freedom you have as a student with pretty much no responsibilities, before one of those job things gets in the way.
 
yeah - I wouldnt say spend it all at once - I've lived that life and you end up working more hours just to survive.

if your renting spend it on that and use the rest for sex and drugs.
 
I would go for option c) as you are only a studdent once. I was a student this time last year and now im working 9 - 5.30 :( (The chance comes hard). On the flip side debt is debt and it is never good to have any, however being a student it is pretty much a given. My main advice would be to budget, but dont budget so much that you are unhappy.
 
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