If you search on the internet about whether or not to go to university, you will get mixed reviews, all relating to money. There are many myths out there and many paper headlines make the figures sound a lot more daunting than they are. If you are a potential student or a worried parent or grandparent, here are some truths you should know about student finance, loans, and grants.
Ignore the Price Tag
With newspapers scaremongering potential students and parents alike, it is too easy to be scared off by thoughts of student debt. How much the course costs shouldn’t matter right now. You do not need to worry about how much you have before you start. Instead, be more concerned with what you will have to pay for once you have graduated and are working. University works a lot like a no win, no fee solicitor; if you don’t get the high paid job, you won’t be paying a high amount back.
30 Years and You’re Out
After 30 years of paying back your student debt, if it hasn’t been cleared, you are free. If you never end up in a job that is above the earning threshold (£25,725 a year as of April 2019), you will have never paid back a penny. This makes getting a student loan a lot more appealing. This is also the reason many people reaching retirement age go back to study. If they do not have a large pension, they will never have to pay back a penny.
If you want to study abroad, things can work a little differently. If you choose a UK university that sends their students abroad, you can apply for a travel grant and the study abroad rate of the maintenance loan. If you are considering studying abroad, with luxurious student accommodation, Barcelona could be your go-to. You can even look online for accommodation in Barcelona at companies such as Collegiate, meaning there is no need to travel to scope out the best rooms.
It Is Done Automatically
You never have to worry about paying your student loan, as when you do earn enough, it is automatically calculated and taken out of your wages before you even see it. This means you do not have to bother yourself with thoughts of debt collectors, as you do not have a choice when it comes to repayments.
It Will Not Affect Your Credit Rating
If you are worried that a big debt on your file will stop you from being able to get a mortgage for your first house, think again. Unlike other debts, student loans do not show up on the systems of any banks or lending schemes. They will only know you have it if you choose to disclose this information. It is one less thing to worry about in the future. For many, the thought of having a debt looming over them for 30 years may seem daunting, but really, it is mostly a formality. If you never earn enough, you will not have to pay it back. If you do earn enough, you only begin paying back very little each month.