Student Finance

[blueroseking]

I'm about to drop out of my course, and I was wondering if this was a wise I idea:

I'll be getting my 2nd Student loan payment (�1,450) at the same time as I drop out from the course, and I was thinking, well, seeing as i'm going to BIMM (Brighton Institute for Modern Music) I might as well buy some pro equipment with this loan, so i'm buying a �1,000 amp. Wise? Will the Loan Company do anything un-just to make this decision less ingenious than it seems?

Thanks!

[joannie10]

your loan payment is for the term ahead so your entitlement for the year will be recalculated and you will be notified of the lesser amount you are entitled but you still wont have to pay it back until you are in employment. Are you planning any future study as this may be affected.

[blueroseking]

I'm going on to do a BIMM course at Brighton, if I were to apply for a Student Loan next year, would it be affected by the loan I got this year?

[joannie10]

the official rule is that everyone is allowed a false start that if you drop out in the first year of study then you will have no problem with finance when you chose to start a new course. From what I understand you are not guaranteed help if starting a new course if dropped out in 2nd year. You would be best to check with your local authority as ultimately they are the ones making the decision.

[joannie10]

do also remember you are paying interest on that loan also - how many years may it take you to pay off that �1000 of equipment???

[blueroseking]

Joannie10: be affected next year, but i'll ask my current uni for advice. As for paying it off, not too much of a concern for a fool hardy young person like me, I mean later in life it's sure to come round and bite me in the ass, but silly as this may sound to you, i'm not too worried.

Thanks

[blueroseking]

that last one was meant to start:

Nice to know my finance won't...

[joannie10]

are you just in your first year? Sorry you had not said that in your posting but yes if that is the case then you will be fine for next year.

[blueroseking]

Oh yeah I am, sorry. I really don't like the course i'm on, it's Video Production, turns out it's not for me, I figured 'I would have just spent the loan on accommodation and booze' lol. Thanks for your help, i will think hard before making any decisions.

[buildersmate]

You ask whether it is a wise idea.
No it is not - much the same as taking any loan that a person has no clue as to how it will be paid back.
OK, so Student Loans are a bit different - one has no choice to finance one's studies - but this is not your intention - you want to spend it some consumer durable.
Probably not what you wanted to hear - it's a balance of youth versus experience speaking.