| Product: |
Student Loans Co. |
| Date: |
23/08/00 (55 review reads) |
| Rating: |
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Advantages: Important aid for students
Disadvantages: Not controlled
I haven’t been a university student as yet much to my dismay however my husband has. We met young and I have seem him through all of his higher and further education. He attended UCL and the fares up to London was over £1000 a year for a 4 year course, his family helped what they could and he got a full grant but that hardly covered a thing. Put to that the price of the books he had to get, specialist books costing as much as £30 or more each and you’re talking real expense.
My husband qualified for the student loans and actually took up the offer on two occasions. What in hindsight I think is a poor idea is how they are handed out, you apply they say yes and there it is in your bank account. This seems like a fortune to any student and I’m yet to meet one with good money sense! So like every other student it was wasted, every penny and my dearest husband was back in debt.
I have known people who have re invested in to earn more interest than they were paying, others buy cars, computers etc or just drink it down the pub. There is the rare student who has enough sense to use it for what it was intended. My grudge is that there isn’t enough management to make sure the money is used for the intended purpose. Students are coming out even more in debt that ever and this really can cripple you for many years especially if you don’t come out straight into big money jobs, and that is the norm.
A much needed resource for students there should be measures put in to make sure it is put to good use for educational purposes. You don’t have to pay it back until you start earning a reasonable amount and the interest is low but you will be surprised how much it really does add up if you take advantage of every opportunity. Be careful and only take it if you need it, although re-investment sounds like a good idea it should be left for those who need it.
Summary:
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Last comments:
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- 25/01/01 P.S. The interest on my £5000 of student loans is about £10 per month. |
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- 25/01/01 The amount you have to earn is currently £18,000 I know because I'm there at the mo! I was in about £9000 - £10,000 when I left.
I don't think you can manage student loans any better, at the end of the day people have to grow up some time & learn how to manage money, I used to use mine to pay my rent.
I think perhaps the problem is not the way the loans are managed but that perhaps some of the students who get them have been pampered by their parents & don't have a clue how to manage their own finances! I had many part time jobs from the age of 12/13 & just before I left for Uni I was managing 7 part time jobs & earning about £150 a week tax free - plus I had a car from the age of 17 etc etc All these are just on the learning curve for "life" skills, some people just seem to pick them up quicker & earlier than others! |
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- 03/10/00 Yes I do agree, some students could definitely do with help with managing their finances. But for a lot of students, as you're well aware, there isn't much alternative. My student loan pays for my childcare and thats it, unfortunatly I shall be in a lot of debt when I get my degree, I just try and convice myself it'll be worth it :o)
I think the amount you have to earn is 10,000 before you start paying it back. The interest rate is very low, but you can pay more than the minimum, thats what I'm planning to do anyway. |
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