Before we proceed to speaking about financial obligation more generally, it is well worth very first clarifying that there is a positive change between education loan debt (so that your upkeep loan and tuition charge loan combined) as well as other kinds of financial obligation.
Whilst it really is just natural that you would have the weight of graduating with a big swelling of debt over your face, usually the therapy of knowing there is the financial obligation may be the most difficult component.
Within our National Student cash Survey this season, one in both of you told us you did not realize your education loan contract. 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 education loan financial obligation that means it is distinctive from other financial obligation:
You only repay once you are making sufficient
Unlike every other kinds of financial obligation, education loan debt takes under consideration just how much you earn and bases repayments with this figure.
Area of the education loan contract is the fact that graduates don’t need to repay a cent of these loan until they are earning ?25,725 a 12 months and over (you start repaying when you earn ?18,935) if you started uni before 2012 or studying in Scotland or Northern Ireland,. (suite…)