| tart --> | | | | money is available to you for the student year |
| As a student you are going to have to learn to cut | | | | commencement. |
| your costs. Your income will be severely limited, and | | | | We have already said that you need to avoid having |
| it will be vital for you to avoid unnecessary expense, | | | | to pay interest charges. Well, a student loan is as |
| and to keep any interest charges on loans to a | | | | about near as you can get to this. Interest on the |
| minimum. | | | | loans (which by the way are unsecured) will be at a |
| You will have plenty of company and will be able to | | | | rate which takes account of inflation, so that you will |
| compare notes with fellow students on how to eke | | | | only pay back the equivalent sum to that borrowed. |
| out your income to the best effect. The final choice | | | | Best of all, no repayment will be required until the |
| on how you raise the necessary cash for course and | | | | end of the tax year after graduation, and even then |
| living expenses will however be yours. You will need | | | | this stipulation carries 'get out' clauses. No repayment |
| to evaluate your options with care, and ensure that | | | | will be required until your income reaches a threshold |
| you make every pound worth as much as possible. | | | | which triggers the requirement; additionally, the rate |
| This may sound like a ridiculous statement, but bear | | | | of repayment will be adjusted to tie in with your |
| in mind that you could easily reduce the value of | | | | earnings level. |
| your pounds if you commit to loans for which you will | | | | There is yet another get out clause; if your earnings |
| have to pay interest charges. Those charges must | | | | never reach the repayment threshold, they will be |
| be paid come what may, if you are not to find | | | | written off completely at age 65! It really is a shame |
| yourself heading for a slippery slope on which interest | | | | that this type of loan is not more universally available! |
| is added to interest. | | | | Whether you will ever reach the repayments |
| Let us emerge from this gloom! Interest free loans | | | | threshold is in your own hands to a large extent, and |
| can be obtained - your Local Education Authority | | | | it could take several years after graduation before |
| (LEA) is well used to dealing with these. You may | | | | you do. During this time you will have the millstone of |
| find that, if your family income is relatively low your | | | | debt haunting you; currently the average on leaving |
| tuition fees will be paid for you in full, and there is a | | | | university is over £10,000 and this is expected |
| sliding scale which requires some payment from | | | | to increase considerably in the next few years. At |
| students from families who are over the threshold. | | | | least you have the reassurance that the amount |
| You may have heard that all tuition fees are paid by | | | | owed is not increasing in real terms - there is no |
| the government, but sadly this no longer applies. | | | | interest being charged on interest. |
| Increases in university admissions made it no longer | | | | If you possibly can, avoid all temptations, especially |
| viable, and in addition a theory was applied which said | | | | of the financial kind. A credit card is a hand grenade if |
| that ex-students would be better able to pay off the | | | | the hand holding it is desperate. Agreed, they are no |
| costs when they were in well paid employment. | | | | problem if paid off in full every month, but this is not |
| This theory was not applied fully, with the result that | | | | your aim is it? You need cash and you need it now. |
| the maximum tuition fees for which a student is | | | | So very shortly you find that your repayment is |
| responsible is ¼ of the cost - currently around | | | | inconvenient or impossible, and there you are on the |
| £4000, although universities do keep increasing | | | | aforementioned slippery slope of interest charges. |
| their fees. The remaining ¾ of the cost is | | | | Banks offer interest free student loans but these |
| covered by the government. | | | | also carry in-built dangers. You can usually borrow |
| Despite evidence to the contrary it is accepted that | | | | around £2000 (a sprat to catch a mackerel - |
| students need to eat and that a diet of beans may | | | | they want your business when you are a high-flyer) |
| be high in fibre but can be exceedingly monotonous. | | | | but exceed your limit and wham!! You are just |
| This is where your LEA will help, and you need to | | | | another customer and you are likely to find yourself |
| discuss your situation with them as soon as the | | | | paying for an unauthorised overdraft plus high |
| course which you will take is determined. They will | | | | interest charges. |
| work out what you can borrow and the student's | | | | Really, when it comes down to it, you have but one |
| loan company will be responsible for ensuring that this | | | | choice. |