A degree can provide a student with not only new-found knowledge, but the means to enter the professional world with the experience to flourish in their desired role. However, many people are often worried about embarking on university life, believing the myths or rumours that can often put them off a rewarding student experience. To help you identify if university life is the right decision, take a look at our informative advice.
The True Cost
A university degree is expensive. There is no doubt about that. However, do not stress if you have the money to make the repayments. The media often creates a panic about student loan repayments – but if you decide to utilize this student loan calculator, from somewhere like SoFi (https://www.sofi.com/student-loan-calculator/) you will be able to see how long it will take you to repay the loan, but only if you can afford it though.
So, if you grab yourself a high-flying job with a great salary after university, a proportion of your salary will repay the loan, but this will be an affordable amount according to your lifestyle. If, however, you don’t earn that much after university, you might just pay a little back or maybe even nothing at all. For example, you will only repay student loan if you earn more than 1,750 per month, which is the equivalent to 21,000 a year. If you earn over 21,000, you will repay 9% of your wage back to student loan.
30 Years of Student Loans
If you haven’t repaid the loan within 30 years of your graduation, the debt will be automatically wiped, so you will never have to make a loan repayment. Even if you earn more than the payment threshold after 30 years, you won’t have to pay a penny back.
No Debt Collectors
You might have heard that debt collectors will arrive on your door if you fail to make the repayments. This is false. All student loan repayments are made via payroll, so your employer will deduct the repayments before they reach your bank. This means no debt collectors will come chasing the money if the repayments are not made, as you will not determine how much and when the money is deducted.
In addition to tuition fees, you can also receive a student loan for living costs, too, which is known as a maintenance loan. This loan can be provided for accommodation, food, travel and books, which will help to aid your studying. You repay the maintenance loan the same way you make a repayment for tuition fees.
Part-Time and Post Graduate Loans
Student loans aren’t just available for full-time undergraduates. Part-time and post graduate students can also receive student loans for tuition fees. From April 2018, maintenance loans and support will also be made available for higher education students who wish to study part time.