“An investment in knowledge pays the best interest.”
The road to success of any nation is through education. Education is a necessity as well as the right of every individual. In the present scenario, people lack to afford it, because the cost of education is soaring day-by-day. Students across the nation are seeking ways to fund their education.
Don’t have enough funds? Want to study in that top University? Student Loan may prove to be beneficial. Lenders advance these loans to help a student achieve their dreams. To afford educational expenses along with maintenance, loans have become a necessity.
Student Loans at a Glance
Loans that can support your education. Loans that have favourable interest rates to support your dreams. These loans have a shorter tenure. One can choose the loan tenure depending upon their requirements. Lenders across the UK are there to help you with these loans. Generally, lenders provide a variety of tenures in student loans. Short-term Student Loans and payday student loans are the most circulated.
How a Student Loan Works
Just like any other loan a student loan is a liability. Although it’s often a blessing in disguise, it is a debt which one has to repay. Students can seek student loans for tuition fees and maintenance fees. They can apply online via a simple application process. The online application process saves time. All they need to do is fill in their details and loan brokers will help them find the right lender for them. At Loan Princess, the aim is to find the right lender for the student in need.
The tenure of these loans may vary accordingly. The interest rates will also vary according to the tenure. The usage of loans can be multiple. They can help students to focus on their studies rather than the bills.
Is Student Loan the Best choice for you?
To understand what may act best for you or not, you have to weigh the advantages and disadvantages. This section will help you in weighing your option and analyse the importance of student loans.
Advantages of Student Loan
• Easy Instalment Repayment: These loans are the first choice of students. They don’t need to repay immediately. They can choose the tenure of the instalments as per their convenience. As for the student, the loan has to be less complex. Students opt for these loans to fund their higher education generally.
• Interest Rates: Interest rates on these loans is generally low. As these are for students, lenders tend to provide funds at lower rates. Less stress on the part of students and parents. Ease of application along with short and long tenures. One can repay monthly and can focus on their education without any debt stress. However, the interest rate may vary from lender to lender.
• No Guarantor, No Mortgage: Student Loans with No Guarantor are available with various lenders across the UK. Students don’t require to provide any mortgage as security for these loans. Bank and institutions require security. The brokers help you find the lenders who are FCA registered and provide loans in easy steps.
Disadvantages of Student Loans
• Debt at an Early Age: As a student, one needs to focus on studies rather than on debt. A loan is a liability which has to be repaid. Even if its a student loan one has to repay it on time. Irregularity in repayment can harm credit score at a young age. Credibility can get affected. This will restrain them further credit lendings.
• Not all Loans are Customised: These loans are available widely but they have certain limitations. Every student has a different requirement. As the courses vary the fee also vary. These loans are not available for customization.
Tuition Fee & Maintenance Loans
Students seek loans for two purposes: Tuition fees and Maintenance fees. The difference between the two is that one covers the full cost of the course.
On the contrary, maintenance loans are meant to cover daily expenses incurred on education. These loans are short-term and the loan amount is also smaller.
How Do Students Supplement Their Loans
Students supplement their loans by various means. A smart investment always bears good results. Apart from finding the right lender, finding ways to supplement the loan is also a task. This lets the student arrange money for daily expenses.
As per the data, students are flexible when it comes to ways in which they supplement loans. Students depend on their family (53%) the most when it comes to extra money. Individuals who are living away from their families tend to depend on part-time work, summer work and savings for day-to-day expenses.
The Changes in Student Loan Policy in the UK
Since 1990 till 2018 there has been some major changes in the student loan policies. These changes affect the tenure, interest rates of these loans. The timeline above depicts the various changes at a glance. Maintenance loans were introduced back in 1990 when maintenance grants were frozen. Later in 1998 Tuition fees (£1,000) came into the spotlight along with maintenance loans.
In 2004, there was a rise in tuition fee from £1,000 to £2,000. 2012 saw the introduction of the repayment threshold of about £21,000. Ultimately, with the beginning of 2018 repayment threshold recorded a rise of £5,000.
“Education is not only a ladder of opportunity, but it is also an investment in our future.”
– Ed Markey
As a student, arranging funds for education can take a lot of time. With the increase in prices of government grants loans is the best alternative. Student loan without any guarantor and at favourable interest rates. The change in the policies of student loans is proven to be beneficial. Lenders across the UK are willing to provide loans to help the student follow their passion. To start your applications, please click here.