The news headlines constantly appears to be packed with stories about huge pupil financial obligation and interest that is astronomical, exactly what no body tells you is that the Student Loan is not like other types of financial obligation.
In the event that you took away a Tuition Fee Loan (for program costs) and/or a upkeep Loan (for living expenses), the quantity you lent is the education loan (remember that funds, bursaries and scholarships do not have to be paid back).
Nevertheless, you don’t begin trying to repay your education loan before the April once you’ve kept your program and so are making above an amount that is certain. Also then, you will just repay 9% of the profits throughout the limit (browse the Arrange 1 and Plan 2 loan summaries for lots more information on this).
There are not any costs mounted on taking right out a education loan, although interest is continually being added, therefore the more you get, the bigger your month-to-month repayments will be.
The education loan additionally does not influence your credit score – the infamous quantity that chooses exactly how substantial loan providers is to you (like once you make an application for credit cards or a home loan).