6 months ago
Student finance is really hard to understand. The recent researches showed that most of the university students don’t have a clue of how the student loan agreement works. Moreover, most of the students tend to believe in certain finance myths rather than to understand their financial situation. And for lots of young people such myths become a solid reason not to go to university. So what are those the most popular student finance myths are is what we are going to figure out now. The team listed 16 finance myths busted by UK students in real life.
#1 UK student loan debt is the biggest in the world.
BUSTED. The tuition fees in the UK are really high, however, student loans are funded by the government, which means that you don’t pay anything up. Besides, the situation in the US is much worse ($1.5 trillion to date).
#2 Only wealthy people can afford higher education.
BUSTED. The student loans provided by the government will cover all your education expenses. Moreover, you can always apply for grants and scholarships.
#3 A big debt means high monthly repayments.
BUSTED. Your repayments depend on how much you earn and you have to repay only 9% of your monthly pay. So basically it’s about 15-20 pounds per month.
#4 You are going to pay off your student loan till your death.
BUSTED. The governmental loans wipe after 30 years, so don’t worry, you are not going to pay off your student loan for the rest of your life.
#5 You have to pay off your student loan quickly.
BUSTED. Just remember that after 30 years your student loan will be wiped. So they say students to pay off their loans quickly just because they want the whole amount of money to get back.
#6 All universities are allowed to increase tuition fees.
BUSTED. All universities can increase the tuition fees only in the line with inflation.
#7 If you don’t pay off your loan the debt collectors will come.
BUSTED. You only pay off your loan when you are able to. So don’t worry, nobody will come asking for money, if you are unemployed and aren’ting pay off your debt.
#8 The government increases the interest rate on your loan.
BUSTED. The government is not able to charge on student loans more than RPI+3%.
#9 You can study for free outside England.
BUSTED. You can never study abroad for free and Scotland is not an exception.
#10 You have to start paying off your loan just after the graduation.
BUSTED. You have a payment-free year after the graduation. The first repayment will be taken only in April the following year.
#11 Your parents are not involved in your university finance situation.
BUSTED. They actually are. And the government expects them to participate in paying off your loan.
#12 Your finance terms cannot be changed.
BUSTED. Changes to the terms can be added at any time.
#13 Student loans affect credit score.
BUSTED. They simply do not.
#14 Your student loan will affect your mortgage.
BUSTED. The only thing that can affect your mortgage is your monthly incomes.
#15 You have to pay yourself for you Master’s.
BUSTED. The government has already started offering postgraduate loans.
#16 You don’t have to pay off your loan, if you move abroad.
BUSTED. It just doesn’t work this way. You still have to pay off your student loan unless you want to have some issues with the government.
Keep up with the Typical Student daily email