A Level Results Day! Student Loans Explained
So, it’s A Level results day TODAY (Thursday 17th August), Congratulations on your results!
A lot of upcoming University students are fearing of debts where their student loans can total over £50,000 over the next 3 years.
As you are aware for all English students both the living loans and tuition fee loans vary depending on where you’re from and where you are going to Study. Please note that anyone who started University before 2012 the system is very different.
Let me Explain…
How Much does it cost to go to University?
This question can be answered in so many different ways and you can be told so many different answers. What you need to remember is you need to stop thinking about “what Is the cost” and more “what do you repay”. If you are a first-time English student going to Uni an undergraduate student will be charged up to £9,250 for tuition fees, this is paid directly to the University by the Student Loan Company. I have listed 5 key facts on how student loans work currently.
You are responsible to repay both your living and tuition loans once you have left University however only if you earn over £21,000 or more a year. If you earn BELOW THIS YOU DON’T OWE A PENNY BACK! You are expected to pay 9% on everything above £21,000, regardless of how much you borrowed from Student Loans. The more you earn the more you repay back monthly. Your loan Is wiped after 30 years, whether or not you have paid any of the monies back. It is estimated that 77% of people will not repay all monies back by the full 30 years, and therefore the remaining will be wiped clean. Your loan payments are repaid through the pay roll just like tax. The loan DOES NOT go on your credit file. Interest on the student loan is added at inflation (RPI) + 3% while studying, and between inflation and inflation + 3% afterwards, depending on what you are earning. For the new academic year, the inflammation will rise to 3.1%. Wont huge loans cripple students for life?
For the amount borrowed plus the interest, this is irrelevant. The reason being the amount you repay a month is dictated on what you earn i.e. 9% of everything you earn above £21,000, anything you earn under £21,000 NOTHING.
The only difference is the amount you borrow and interest makes is whether or not you clear it within the 30 years before it wipes clean. If you are a high earner you will.
Please don’t let the worry of debt fear you from going to University for the points we have raised above. It is essentially another form of tax that stops after 30 years.
Harvey & Ryall have rooms/house shares available for Huddersfield University Students CHEAPER and CLOSER to University then halls. Including houses with gardens, FREE parking, En-suites, bills included, less than 10 minutes’ walk please visit www.harveyryall.com or email us at firstname.lastname@example.org and a member of staff would be happy to help you find your perfect accommodation.