Bad news to all our student readers out there… with the news of interest rates on student loans being raised to 6.1%, it looks like you’ll be leaving university with £5000 worth of debt ouch! With inflation rates, rapidly on the rise both interest rates on tuition and maintenance loans will be pushed up.
Students have been hit badly in the past few years. Despite interest rates being roughly at 3% in 2012, they have more than doubled since then- making the interest rate higher than the rate for a mortgage! Again in 2012, the lovely government decided to raise the limit on tuition fees from £3,225 to £9000. It’s now looking like for most students paying off their student loans will be impossible, and they will be left with a lifetime of debt… well that’s just great isn’t it.
Anyway, let’s stay positive…
Here’s some things for current and former students that will hopefully make you feel better about your lifelong debt:
-Firstly, there’s not much you can do about it- that’s unless you’re loaded!
-You only have to start paying off your student loan once you earn above £17,775.
-Having a student loan doesn’t have any impact on your credit rating…in fact it can even help it!
-Most people are in the same boat. Currently £13 billion is loaned out to students each year.
-Chances are you’ll never pay off your loan. But look at this as a positive thing- any unpaid debts are written off after 30 years.
That's all cheered you up - right? RIGHT?
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This article originally appeared on The Debrief.