Leaving their university education with a debt average of £12,000, it seems to look as if students, who are finished with their education, don’t seem too worried about having to pay off student loans payments for a few years after leaving.
And there seems like there is not going to be any let up in the amount of students who are following in behind the ones who have left university with the same type of attitude to student loans. With this in mind a rise in this figure for the coming year is also expected.
Every student who starts on the road to a university education this year, is due help on the cost of it, and the help that they get has seen a increase in the help that they receive from the government for tuition fees, though they have set aside a little more for less well off students.
Don't Let Finances Get In The Way Of Education
The thought of going to university can be an exciting time for any student who is considering it and one of the main thoughts on the decision is always going to be about money and how will they cope financially. If it is something that you really want to do and to be honest it will be worth it in the long haul of life, then you should go for it. Though dealing with the cash issue won’t make it easy, but if you do apply for a student loan, then you will have to show that you have grown up and let it help you get the education that you are there for, by being responsible with it.
This is not to say that you can’t enjoy that infamous student life and stop you having some fun, but make sure that the loan you get is first and foremost for your degree and if you have any spare then the world is your oyster. Since, once you are finished with your education, you don’t want to be paying off a student loan for years to come that is nothing more than a bar bill. Or maybe you do..
So how does a student loan work? Well first of all the financial situation of a students household will be taken into account and the college or university that you have set yourself on going to, also makes a difference.
Qualify for Student Loans
For students who come from a family that has an income under £22,010 will not have to pay any fees at all and families who have an income in the region of £22,010 and £32,744 will receive some help, with a contribution to help them start out. Only students with a household income of more than £32,000 will not receive help and will have to pay full fees.
But extra help is on hand for students who are coming from a household where they are earning less than £15,580, where a grant is paid by the government, to help them get as much chance of the right education as the better off, this grant will be in the amount of £1,000 for each year that they are there. With even more help made available, for students who have disabilities, came from care or are dependants.
All students who start up in college or university are eligible to apply for a student loan, which can be anywhere up to a maximum of £5,175 for every year that you stay in education and will be deposited into your bank account by the Student Loans Company (SLC).
So how and when do you start to repay your student loan? This is made easy for you as you will not be required to pay anything back while you are still in education, it will only be paid back, when you have got what you went there for by graduating or simply if you leave the college or university to take up work, though you will only have to pay it back if your earnings exceed £15,000.
Figures correct as of 22/4/05
- - What do you need to know about student and graduate loans? First, it's good to know that the interest on these loans is much lower than a typical personal loan. However, it's also important to know that a student or recent graduate can become locked into a relationship with a lender through these loans, so careful choices is imperative.