Student Loans Guide And Advice

Student Loans Guide And Advice

Student Loans Guide And Advice
If you​ are about to​ start University,​ then it​ pays to​ know about the​ student loan process .​
Most students take out some form of​ student loan during their study to​ help them pay for their fees and living expenses .​
If you​ are unsure about how student loans work,​ then this guide will be able to​ help you.
How are loans paid?
Student loans are paid in​ three instalments each year,​ usually once each term .​
The first payment is​ usually made by cheque,​ and then after that payments will go straight into your bank account .​
How much can I​ receive?
The amount you​ will receive depends on​ where in​ the​ country you​ are going to​ attend University,​ as​ well as​ the​ financial status of​ you​ and your family .​
You can opt to​ get a​ fixed amount per year,​ or​ you​ can be income assessed and the​ maximum amount you​ can receive will be determined .​
You can take as​ little or​ as​ much of​ this amount as​ you​ want .​
On average the​ amount you​ can receive ranges from £1,​500 to​ £4,​500 each year,​ depending on​ your financial status.
How do I​ pay back the​ loan?
After you​ have finished University,​ you​ will begin paying back the​ loan .​
Repayments will start from the​ April after you​ graduate,​ although you​ only need to​ repay money after you​ start earning above £15,​000 per year,​ calculated on​ a​ monthly basis .​
The amount you​ pay back will be taken out of​ your wages just like tax,​ at​ a​ sliding rate .​
You can also pay back more than this if​ you​ wish,​ by sending money to​ the​ appropriate authority.
What is​ the​ interest?
The interest on​ student loans is​ subsidised by the​ Government,​ and so you​ only pay back the​ same amount that you​ borrowed,​ adjusted for inflation .​
However long it​ takes you​ to​ pay back the​ loan,​ you​ will only pay back the​ same amount in​ real terms that you​ borrowed.
What are the​ advantages of​ taking out a​ loan?
The advantages of​ taking out a​ loan are that you​ have money in​ order to​ pay for your living costs whilst at​ University,​ meaning that you​ can concentrate on​ your studies rather than having to​ work to​ earn money .​
This will help you​ to​ achieve better grades and give you​ more free time .​
Also,​ taking out an​ interest free loan is​ better than getting into debt on​ high interest credit cards .​
These debts are more serious and have to​ be paid back or​ they will keep increasing.
Are there any disadvantages?
Obviously,​ the​ major disadvantage of​ taking out student loans is​ that you​ will come out of​ University with a​ large amount of​ debt .​
This can seem troubling at​ first,​ but you​ should remember that most students have the​ same problem,​ and because you​ are not paying interest the​ debt is​ not going to​ rise .​
You should think of​ the​ student loans as​ an​ investment in​ your future that will help you​ to​ achieve your career goals.

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