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Student Debt Solutions Apply online
The statistics show that more and
more students are graduating from university with significant debt.
The debt levels are growing year on year and many students will
be paying them off for years after they graduate. It seems that
the consumer addiction to credit and spending has effected the student
population just as much as every one else. The fact that most students
are not earning anything, and are living either on funds provided
by their parents, or on money borrowed, they continue to spend millions
each year.
These costs are spread over a variety of areas. Accommodation
and other living expenses represent the largest portion of the expenditure.
Added to this is travel to and from university, holiday and summer
travel expenses, and entertainment. While students are generally
financially responsible and not as out of control as many patents
would have you think, they do continue to spend a huge proportion
of their money on entertainment and socialising.
Many students will also be working part time during
their studies. There are a lot of jobs available and finding one
is not a problem for most students who genuinely want one. Employers
recognise their flexibility and willingness to work unsociable hours
and also that they will generally be happy to accept minimum or
close to minimum wage. Therefore, while the jobs are there, they
generally pay little, and students who work more than 10-20 hours
a week are probably putting a serious strain on their studies and
risking their future chances of success.
Most student debt is comprised of student loans. The student loans
company based on eligibility criteria provides these. These loans
are cheaper than credit that is available on the market from high
street banks and have other significant advantages for students.
Firstly, students will not have to start repaying the loans until
they are earning a set minimum amount, currently around the £15,000
mark. Then there is also the fact that loan repayments are calculated
according to earnings levels and are therefore always reasonably
affordable. Students are giving as much time as they need to repay
the loans and the interest rates, as said before, are very favourable.
As well as these student loans however, many students will also
have other forms of debt. Most banks are offering interest free
student overdrafts of up to £2,000 and there are not many
students who do not use this up pretty quickly. Then there are bank
loans, store cards and credit cards. All of these represent a significant
amount of debt that most students are living with.
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