studentloans

there you were, chilling out, young, and carefree.life was good. until… tuition fees increase.what were you to do? there was no way you can afford the increase in fees and the livingcosts or could you? firstly, you don’t need to pay anythingstraight away. you’ll get a loan, for your fees and yourliving costs, which you don’t need to pay back until you’re earning over â£21,000.so, say you’re earning 22,000. then you will pay back 9% of your income above â£21,000.or to put it another way, â£7.50 a month. about the cost of a small takeaway pizza ora trip to the cinema. if your salary is ⣠25,000, you’ll payâ£30 a month. about the cost of a mobile phone

contract.in fact , under the new loans system, students are â£540 better off every year than studentson the previous scheme – with more money in their pocket.your repayment comes out of your paycheque each month, before it even gets to you – justlike tax. but we’re not going to sugar-coat it foryou. depending on what you earn, you could be payingmore money back for longer, perhaps most of your working life. however, after 30 yearsyour debt will get written off. most people will never have to pay off the full amount,and the repayment scheme is designed to be affordable.you will be charged interest on your loan

from the moment you take it out, but the amountyou pay back each month won’t be affected by the interest – you’ll only need topay back 9% of your income over â£21,000. plus this debt isn’t considered in yourcredit rating, which helps when applying for mortgages and credit cards.you can also view it as an investment, as graduates earn an average of â£12,000 a yearmore than non-graduates, over their working life (according to the office for nationalstatistics 2011). so – can you afford to go to university?well, that’s up to you. going to university is a big decision. weigh up the pro’s andcons and make a choice that is right for you.