Personal Loan App
Posted: September 19th, 2022, 7:16 pm
I think this is probably the right board....
Child No 1 is approaching the age where she will be going off to University soon. Obviously Student Loans are there to provide for the tuition fees and living costs, but I don't like them. The concept of interest being charged from day one, several years before the student would even have a chance of earning enough to pay it back combined with current high inflation rates which will result in higher student loan interest being accrued, means that the average student will already be significantly increased by the time the student graduates, let alone earns enough to start paying it back.
I know there is the possibility that the loan may be written off if not paid off eventually (but I think that is being increased to 40 years) so even an unpaid student loan becomes a millstone round the neck for almost a whole lifetime, and I have great confidence that Child No 1 will have a lucrative career and will have to pay back the loan.
As a parent who has the means to loan the student finance to Child No 1 myself, I can set far more favourable repayment terms, lower interest rates, interest free for the first four years until the student is in employment, etc. and encourage repayment as soon as she is earning a reasonable wage - not necessarily the arbitrary level set by the government (£21,000?). I could make the whole loan interest free for the whole term but I need to provide an incentive to repay it.
She has other savings from grandparents and will take control of her JISA on her 18th birthday, which itself could almost cover 3 years at University (but I would rather she keep this as a deposit for a house and drip feed it into a LISA to maximise the gains courtesy of HMRC).
So ideally I would like to find an app the we can both install on our phones whereby I can provide loans as and when required and it will manage all interest accrued, repayments, etc. and that I can set the parameters of interest rate, etc. Surely someone must have produced such an app by now. I could do it with Excel but it would be more seamless if I can find an app for our phones. This would at least document the loan which would be a halfway house between an informal agreement and having a legal agreement drawn up to ensure that she doesn't 'forget' that it was a loan rather than a gift.
Anyone come across anything like this?
TIA
SFU
Child No 1 is approaching the age where she will be going off to University soon. Obviously Student Loans are there to provide for the tuition fees and living costs, but I don't like them. The concept of interest being charged from day one, several years before the student would even have a chance of earning enough to pay it back combined with current high inflation rates which will result in higher student loan interest being accrued, means that the average student will already be significantly increased by the time the student graduates, let alone earns enough to start paying it back.
I know there is the possibility that the loan may be written off if not paid off eventually (but I think that is being increased to 40 years) so even an unpaid student loan becomes a millstone round the neck for almost a whole lifetime, and I have great confidence that Child No 1 will have a lucrative career and will have to pay back the loan.
As a parent who has the means to loan the student finance to Child No 1 myself, I can set far more favourable repayment terms, lower interest rates, interest free for the first four years until the student is in employment, etc. and encourage repayment as soon as she is earning a reasonable wage - not necessarily the arbitrary level set by the government (£21,000?). I could make the whole loan interest free for the whole term but I need to provide an incentive to repay it.
She has other savings from grandparents and will take control of her JISA on her 18th birthday, which itself could almost cover 3 years at University (but I would rather she keep this as a deposit for a house and drip feed it into a LISA to maximise the gains courtesy of HMRC).
So ideally I would like to find an app the we can both install on our phones whereby I can provide loans as and when required and it will manage all interest accrued, repayments, etc. and that I can set the parameters of interest rate, etc. Surely someone must have produced such an app by now. I could do it with Excel but it would be more seamless if I can find an app for our phones. This would at least document the loan which would be a halfway house between an informal agreement and having a legal agreement drawn up to ensure that she doesn't 'forget' that it was a loan rather than a gift.
Anyone come across anything like this?
TIA
SFU