Are Career Development Loans a good deal?

Question

I want to study for a MSc, and I was thinking about a career development loan. The interest is fixed at 12.9%, and I don't have to pay back until the course has finished (two years), and the government pay off the interest during the time that I study. I was thinking of asking for around £3000 which should cover fees, books etc.

Answer 1

12.9%?? Sounds like a dreadful deal, especially as nothing is paid off, your interest will just mount up during the course.

If your MSc is for 2 years, you must be working during that time.  I'd investigate a regular loan over 5 years and compare what you pay on that to the career development loan.

Answer 2

I2.9% is a massive rate of interest,it depends on whether you are still a student or in emploment.Then on your job prospects and prospective earning power.The simple maths would suggest that it is an expensive option for the borrower and a good deal for the lender.I took the option many years ago now and although the sums tell one side the actual benefits were social and intellectual in terms of lifestyle,so unfortunately only you can decide which set of criteria you choose.The cost of books can be lessened if you look on ther students notice board for last year's students selling their books,or better still use the library and internet.

Answer 3

I am in a similar situation as you, wanting to do a MSc this autumn. They are good if you dont want to pay as you are studying, and the credit scoring acceptance is lower than a normal unsecured loan. I value the Advice of Marin Lewis. You have to consider how many years the course is and the funding for books and so on. It is a decision not to rush into and needs a lot of thought. If you do go for an unsecured loan, be careful who you choose, I rang up a well known one and the said yes to a certain amount, gave figured, then back tracked. This company I am taking to the small claims court for an administration fee they conned out of me and have reported to trading standards. Now I have debt management companies contacting me, just because I want a loan. I will wait for  CDL, now.

You can find grant and loans from these sources in a library too: The Grants Register, Macmillan and the Charities Digest- Waterflow. This is going to my next aim.

http://www.moneysavingexpert.com/loans/c...