So Fresher’s week is over, everyone is settling into University life and Autumn is well and truly here. This time of year sees the start of Open Days and UCAS applications, the University cycle is starting again! With this in mind, we want to get the facts straight and make sure everyone has all they need to know about Student Finance. The £9,000 fees make it even more important to spread the word and dispel the myths – a lot of people are put off by the big figures and the ‘debt’ they’ll be in when they leave University. We really don’t want this to happen, everyone can go to University if they want to…
Here are some big important facts to remember when thinking about Student Finance for 2012 + starters:
1. No one has to pay anything up front
2. Everyone is entitled to some living costs support
All students are entitled to 65% of a maintenance loan, regardless of household income. The remaining 35% is income assessed and the maintenance grant is entirely based on household income.
3. Repayments are based on the student’s future earnings and won’t start until they have graduated
Students do not have to start repaying their loans until they have graduated (in the April after their graduation) . This only happens if they are earning over £21,000 a year – the repayment is 9% of the amount over the £21,000. For example, if a student is earning £22,000 a year that 9% is the £1000 over the threshold – once they have graduated they will repay £7.50 a month/£90 a year.
4. There are NO debt collectors
Repayments are taken directly out of the student’s pay check, just in the same way as National Insurance and Income Tax, therefore, you can never miss a payment. If the student loses their job or their income drops below £21,000 the repayments will stop. 30 years after the student has graduated the repayments will be wipes, regardless of how much the student has or hasn’t paid back.
5. Student loans do not appear on credit files
Unlike commercial borrowing, student loans do not appear on credit files and won’t affect the student’s chances of getting a mortgage in the future.
Finally, give this a watch – created by students at Bournemouth University, it’s Student Finance explained in just under 4 minutes!