University is a time of experimentation, learning, finding yourself and most importantly becoming independent.
So the majority of school leavers are ready to take the plunge, but realise that there comes a price. For me university wasn’t as expensive as it is today, the change in tuition fees however, did not deter those ready for the next stage in their life. But as more and more university graduates enter the world of work they are faced with the stark reality of a massive student loan hanging over them like a grim cloud.
The interesting thing is that even if you got a student loan, but didn’t use it and kept it in a high interest account till the time to repay; you would still have to pay it off over several years. Lump sums are not allowed because the banks want to make money off you. The longer you have to keep paying the more interest they add on. It’s a nasty and vicious ordeal that shouldn’t be subjected to someone who is going up against the possible 400,000 student graduates that graduated the same year and you are competing against for a mediocre job that has nothing to do with your course.
…a loan that may haunt you for most of year adult life…
There are alternatives to paying back the vast fortune you owe. Once in a job you can work out with your HR manager how much you want to repay out of your pay packet. There are also various bank initiatives to help manage your money. Lloyds TSB has just started a money manager program that shows you exactly where you are over spending and how to cut back on the silly things.
The student loan is now an everyday occurrence and a bane on so many people’s lives. Was it worth getting? Did your uni experience merit a loan that may haunt you for most of year adult life? If you’re lucky you’ll marry a rich person and after 25 years they’ll wipe the debt if you aren’t working. But let’s be honest… how many of us really going to marry into money?