Before we proceed to referring to financial obligation more generally speaking, it is worth very first clarifying that there is an impact between student loan debt (which means that your upkeep loan and tuition cost loan combined) along with other kinds of financial obligation.
Whilst it’s only normal that you would have the weight of graduating with a big swelling of financial obligation over your face, usually the therapy of knowing you have the financial obligation could be the part that is hardest.
This year, one in two of you told us you didn’t understand your student loan agreement in our National Student Money Survey. For the sake of your mental health, we think it’s worth clarifying a few things about why these loans are different whilst we would never describe student loans as a ‘good deal’ and we certainly don’t agree with the interest rates currently charged on them.
4 perks about student loan financial obligation which makes it not the same as other financial obligation:
You only repay once you are making sufficient
Unlike virtually any kinds of financial obligation, education loan financial obligation takes into account exactly how much you earn and bases repayments with this figure.
Area of the education loan contract is the fact that graduates do not have to repay anything of the loan until they truly are earning ?25,725 a year and over (you start repaying when you earn ?18,935) if you started uni before 2012 or studying in Scotland or Northern Ireland,. Read more