Already by 2005, Paul Gratton, Egg?s chief executive, had predicted on the Guardian Newspaper's website that ?by 2009 students could be graduating with debts of £9,000 related to tuition fees alone.? And in fact, the Student Loan Company (SLC) has published on its website that in the 2005/2006 school year, the average loan taken out for the year was £3,330.
Life is more expensive each day, and as a result more and more students are beginning their professional lives in debt. In December of 2005, guardian.co.uk reported that ?figures from SLC show that at the end of the 2004/05 financial year there were 2.6 million people with an outstanding student loan. Of these, 59,000 were at least two months behind with their repayments.? Thus, researching and then managing these student loans is of utmost importance.
Students in the UK have two main sources from which to receive student loans. There is a government run scheme and then there are student loans from private institutions. Student loans from the government have much stricter amount limits based on the year of schooling, where you live, and in which city you study.
However, there are advantages to these government student loans. You do not have to begin repayment of government student loans until after you have graduated, secured a job, and started to make a certain income (currently £15,000), and these student loans generally come at lower interest rates, saving you money over time.
Banks also issue student loans. First of all, you will need to consider how much you will need to cover tuition, fees, living, and insurance, etc. and for how long you will study. This consideration is more important in securing private student loans because the loan amount is so variable. Now, you will have a huge pool of student loan offers from which to choose.
The demand for more student loans has increased, and the products have followed. In general, you will need a co-signer or a positive credit report in order to be considered for private student loans. You may have the option of paying on the interest during the credit period, which will lower the total amount due in the end, as well as shorten the length of the loan. And usually, you will have ten years to repay the private student loans.