My time at university was undoubtedly the best of my life [bar 2010-2011, good times.] I loved every single second, grew & matured so much as a person and made a group of friends I cherish more than anything in the world... and who I'll see as family for the rest of my existence. I actually wrote a bit about my experience at uni here, if you're interested; with a few tips for freshers.
The skills & friendships I developed during my stint as a student shaped the person I am today. Cheesy but true. I sing the praises of university to everyone & anyone who'll listen [literally, if you know me IRL you'll know I chat the ears off every man and his dog] so I always feel sad when I hear young people being put off this experience because of the horror stories they've heard re: student debt.
A huge thing that puts people off applying is the idea of the debt you'll incur & lug around for the rest of your life. For young people turning 18 who've never had a debt before [credit cards, overdrafts, loans etc] this can be daunting AF. So let's talk about it.
I'm no stranger to loans - as well as my student loans, general life loans have helped me out of many tricky financial moments in my life. Unexpected bills, medical expenses and during times where cash has been tight AF I've used these kinda resources - and provided you use them sensibly and keep to your repayment agreement, loans can actually help you build a better credit score [and get you out of that tight spot!] Companies such as cashlady can help you find the best deal for your situation if you're in need of a helping hand financially.
Student finance is an essential part of many people’s university experience - especially with the increase in the cost of fees. Loans [as well as {in some circumstances - where available} bursaries, scholarships & government funded grants] help cover living costs during the duration of your studies - and course fees. As you know, it's always important to fully understand what you're signing up to when applying for finance & how it's repaid.
So let's get onto debunking some student loan myths!
1. MYTH ONE: Your student debt will be on your mind every second of every waking day, and you'll be taken down by worry and / or high monthly repayments
Many things worry me. My water bill, stepping in dog poo outside the corner shop, one of them massive spiders appearing in me gaff at 3am again. But I can honestly say that my student loan is not one of those things. In fact, I forget I even have it; aside from the annual reminder when student finance write to me with a summary of my balance.
Repayments are all relative to what you earn - and the amounts paid per month are small; much much less than the NI & tax you pay! You only start paying it back once you've graduated and hit a certain earnings threshold. And if for any reason your salary takes a hit, your repayments will go back down again too. AND even if you're dead lucky and walk into a well paying job as soon as you graduate, there's like, 6 months before you'll have to make your first payment.
The threshold for repayments currently kicks in when you start to earn more than £25,725. Which is only about £15 a month. Like, the equivalent to one less Dominos. Doable.
2. MYTH TWO: You'll be paying off and worrying about ya loan till the day you die
In a word, NO. If your student finance is government funded - which is usually the case with tuition & maintenance loans, they're wiped out after 30 years. I graduated in 2010, so I'm already nearly 10 years in! And I have I paid all mine back? Hahahaahahahaha nope. And do I worry? No, tbh hun. I make my payments, I live my life & try and post the shiny nice parts of it on Instagram.
3. MYTH THREE: Your credit rating will plummet if you take out a student loan & you'll never ever be able to buy a house / get a mortgage
Also no. My credit rating was bangin' after I graduated tbh. Your student loan doesn't actually show on your credit score. Which means it won't affect your credit rating or your ability to get a mortgage. As long as you make repayments for any other form of credit you have [phone contract, student overdraft, credit cards etc] your credit will remain healthy and as long as your student finance repayments sit well within your affordability, you shouldn't encounter any difficulties getting a mortgage.
Did any of this information help you? Do you have a student loan - or would taking one out impact on your decision to go to university?
*Collaborative post, all opinions and experiences expressed are my own. Find out more in my Disclaimer
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