5 Misconceptions About Student Finance
We have listened to a lot of media which talks about Student Loans and high interest rate. But what does it actually mean? We want to debunk some of the most common Misconceptions about student finance.
Arming yourself with the facts when it comes to this stuff is extremely important. For many young people, it can even determine whether they shoulf go to the university at all or not.
This information we are releasing to you will be a guide that will help you separate fact from fiction.
1. You will be paying off student debt your whole life
If your debts are government loans (including the Tuition Fee Loan and Maintenance Loan) and not loans from a private lender, they will be wiped off after approximately 30 years (depending on what plan you’re on).
If you get admission into the university at the age of 18 and graduate at 21, this means that your repayments will stop by the time you’re 52.
2. All universities are allowed to raise tuition fees
Some people worried that tuition fees will increase, because in 2012 the government said that only top universities would be charging high as €9k. They were afraid that such a thing could happen again.
But as things stand, universities are only allowed to increase tuition fees in line with inflation. This is why fees increased from £9,000 a year to £9,250 a year in 2017/18.
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3. You can avoid tuition fees by studying outside of England
Tuition fees are usually only free in Scotland for Scottish residents. So if you’re an English student looking to escape the £9k+ tuition fee a year in some universities. Scotland isn’t your answer.
For you to get a free tuition fee in Scotland you have to live in Scotland for at least three years prior to applying to university to be eligible for the free fees. Your application might be denied if they observed that you only moved there just to get free tuition fees
4. Your parents have nothing to do with your finances at University
The government do expect your parents to be involved in your finances at University.
The government decides how much Maintenance Loan you should receive based on your household income. This is because they expect your parents to make up the shortfall.
In reality, some students will get more financial support from their parents than the government recommends. Some, however, won’t receive a penny.
Although the government uses your household income to decide whether you will get a loan or the amount of money they are ready to loan you. It is only a guideline.
5. You don’t repay your Student Loan if you move abroad
As much as you love this one to be true, it’s a myth that everyone want to be true that you don’t have to repay your Student Loan if you move abroad.
No matter where in the world you live, if you’re earning over the repayment threshold, you should be making Student Loan repayments.
You will need to let the Student Finance know that you’re working abroad and you are ready to pay back your loan.