STUDENT LOANS AND TUITION FEES
The average student loan debt has risen to £9,620, with nine out of ten students now relying on loans to fund their university education. But who pays for student living for non-working students?
The average student entering higher education currently has a debt of roughly £10,000 when they graduate. A combination of school loans, credit cards, and overdrafts make up this debt. However, according to Barclays, students graduating in 2010 will be in debt of £ 30,000.
Although some statistics indicate that graduates can expect to earn more than the average, they may not be employed in well-paying employment for several years after graduation. Unfortunately, this increase in income may never be enough to pay off their existing debt for some people.
The best way to avoid a struggle is to become aware of and prepare for any costs that may arise throughout our course, including the time it may take you to find work afterwards.
First, there are tuition fees, which cover the cost of the courses you want to take.
Before 1999, the government paid for everything. However, the government is now being forced to reform the system due to the growing demand for higher education. This is further supported by the notion that a graduate can make £400,000 more than a non-graduate throughout their working lives.
However, not everyone is required to pay tuition. They are exempt from paying, and the contribution operates on a sheer scale from the threshold onward.
Regardless of their income, each family’s maximum annual payment amounts to around a fifth of the overall course charge. The cost is projected to be roughly £4,000, and the government would foot the price for the rest.
Once you’ve been accepted into the programme, you’ll need to register with your local education authority (LEA) to see what kinds of financial aid you’re eligible for.
Are you considering taking out a loan to pay for your course?
Most students must take out one or more student loans to fund their everyday expenses. These are unsecured loans with extremely low-interest rates adjusted for inflation, so you pay back the amount you borrowed.
If you’re going to take out a loan, you’ll need to contact your LEA while you’re applying for tuition assistance. Your LEA will determine the amount of loan you are eligible for and allow you to inquire about how much you would want to use for it. You must then tell the Student Loan Company (SLC) the agreed amount. Also, keep in mind that if you study in London, you will be eligible for greater support.
You can apply for a loan for each year of your course, and payments don’t have to begin until April (the end of the tax year) after you graduate. After that, you will only start repaying the loan if you reach a specified income level.
Your income will then determine the amount you pay back each month. If you never go over the limit, the loan will be forgiven when you reach the age of 65.