Loans who needs them? (Student Loans Co.)

Member Name: salty_monk

Product:	Student Loans Co.
Date:	25/01/01 (67 review reads)
Rating:

Advantages: Cheap loan - can work for you even if you don't need it!

Disadvantages: Paying them back!

To avoid student loans the answer is simple - become a Teacher in IT, DT, Maths, or half a dozen other subjects.
Grants for these subjects where teachers are in short supply stand at about £6000max at present.
I've been Graduated for 18 months now (no I didn't have to pay fees) & came out of Uni in about £9000 debt. These icluded £4500 of loans plus interest & 2 interest free overdrafts.(yes this is dodgy but possible & quite easy to do! Just don't tell the 2nd bank about your 1st student account but instead produce an old savings account card & say you've been using that!)
I think presently the loans stand at about £3000 or perhaps £3500 although nowadays I don't think you can have the whole lot in one lump sum.

The biggest piece of advice I can give is get the full amount regardless of whether you need it or not!
If you don't need it, put it in a high interest account or premium bonds or something, you can only make on this deal & think how useful it will be when you graduate to have that money at very low interest to use to buy a car or deposit on a house whatever.
Maybe you'll blow the whole lot by travelling round the world or perhaps you'll just leave it there & keep taking the 3% interest that you'll be making over interest charged - who knows!
I have heard rumours that loans are written off after 6 years if you haven't started paying them back - this is only a rumour I have no confirmation; personally I can't see it but judging that my interest on £5000 ish is about £10 a month someone might chance it! You could get away with this if you don't earn the wages required in this time to start pay back!
Deferment is easy - one form plus 3 months payslips or a letter from your company confirming your wages (less than £18,000).
If you miss the cut-off day you can still defer but you'll probably end up paying about 3 months payments whilst they process it - they don't refund this either it just stays as a credit against your
balance!
Life is becoming more & more difficault for students financially - you just have to keep your head & manage your finances wisely.
Try & avoid credit or store cards at all cost unless you use them as a 30 day interest free stop gap by paying the balance off each month, if you have alreday run up a bill, don't pay massive interest, shop around loads of cards have low or 0% interest for introductory periods - use it to your benefit then cut up the card & transfer the balance!
I gave this 4 stars as I think they are actually quite good - I think that yes grants should come back - but it seemedto me that only the wealthy kids used to get the full grants because their parents were divorced or had their own business & a good accountant!
At least loans & the thought of paying them back discourages some of the wasters!

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