Birmingham news All you need to know about student loans - our top five tips PremierLeague-News.Com
PremierLeague-News.Com - Currently almost £20 billion is loaned to around 1.5 million students in England each year
PremierLeague-News.Com - Breaking Sport Transfer News ! Enough with the confusion about student loans, I'm here to make it very very simple for you all. I was a student not so long ago and I too had many misconceptions surrounding student loan. This was partly because they weren't explained to myself and others in school. And secondly, because the word 'loan' does sound scary without having the knowledge to understand it. Loans are often associated with debt and I completely understand why it scares a lot of students from wanting to go to university when its largely viewed in a negative light. Read more: Five ways students can save money as costs rise Currently almost £20 billion is loaned to around 1.5 million students in England each year and what's unfortunate is a large percentage of those students have no real idea of what their student loan agreement is. All students deserve a sit down and a full detailed explanation of what a student loan is, the payback rate and all other necessary information. Every student should feel that they can go to university without cost being a concern, but unless that happens, how can any student decide with a lack of understanding? I hope my guide helps you all understand and apply for university degrees with confidence and no fear. 1. What is a student loan? A student loan is a type of loan designed to help students pay for post-secondary education. They are the main method of direct Government financial support for higher education students. The money is loaned to students at subsidised rate in order to help cover the cost of tuition fees and contribute towards maintenance living costs. 2. Yes, there are two types of loans So your student loan covers your tuition fees - and then you apply for a maintenance loan. Don't worry I will explain this. Tuition fees are charged by universities that cover the costs of your course, as well as services related to students’ wellbeing and overall experience on campus. If you are studying in England, your tuition fee could be up to £9,250 and you would apply for that loan through Student Finance (SFE). And as we know, a lot of students move away from home to study, therefore you would need to apply for a maintenance loan. Maintenance loans are available to students to help with your living costs at university, for example your accommodation, food, transport.
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. Maintenance loans are there to help and in reality may not cover all your living costs and most students solve that by getting a part-time job or other means of financial support. 3. Your loan is not interest free Interest starts being added to your loan from when you get your first payment. But the interest for now is capped at 6.3 per cent. And although it may seem like a lot, remember your are in control, this is your education and the more you know the ins and outs; the more confident you will feel. 4. How much do I repay and when? So, how much you repay back will depend on which plan you’re on. Each plan has a threshold for your income whether that be weekly or monthly. You will repay: 9 per cent of the amount you earn over the threshold for plans 1, 2 and 4 which is for most Undegraduate loans 6 per cent of the amount you earn over the threshold for the Postgraduate Loans Gov.uk further explains these plans in much more detail, so you can get a better understanding. You do not pay anything back if your income is under the threshold and I repeat, you don't need to pay anything back if your income is under the threshold. So do not worry! And its important to know that you will only start to repay your loan back when your income is over the threshold amount for your repayment plan. The threshold amounts change on April 6 every year, so bear that in mind. 5. The misconceptions of student loan debt The reality of paying back a student loan is different for everyone, but one thing I can guarantee is that there is no pressure to pay it all back quickly. Even the people earning over £27,295 a year may not pay their debt within 30 years, we all need to be realistic. So don't be fearful, there are no debt collectors with student loans And if you don't get a job or its low-paid, after 30 years, any and all remaining debt is wiped. I hope my guide to student loans helped and you feel more confident about your finances for higher education. All the best students! READ NEXT: Five things you can get at university for free Here are the best student bank accounts and what they can offer you Rishi Sunak vows to drop degrees that stunt students earning potential We asked the people of Birmingham how they have been affected by the cost of living crisis How do you start preparing for Christmas? Have your say
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