Darwish Posted June 16, 2003 THE MONEY TRAP! University life is said to be the most fun & carefree time of student life. Once upon a time perhaps… unfortunately this is no longer the case. Living the life of a student is becoming more & more difficult, primarily due to financial constraints. Student Expenses § Living costs, especially for those living away from home. § Tuition Fees § Travel expenses § Books § Rent To name but a few…. The Solution Scholarships & Student Awards Student Loans, as offered by the Student Loan Company (Scotland) Student Accounts & Credit Cards, as offered by Barclays, HSBC, Lloyds TSB Or is it? Statistics show, on average a student leaves university with a £12k debt! This figure will be closer to the £20k mark now as grants are no longer available and on average a student living away from home in London is entitled to £4.5k a year. On top of this university students are entitled up to £2k student overdraft from most high street banks. They come bearing gifts… High Street banks target undergraduates in a very calculative manner. Under/graduate banking is big business to these banks as they devote and create entire departments to deal with this target group. As the academic year begins, bank delegates will be waiting outside Universities and student unions to attract undergraduates. Cameras, cinema tickets, mobile phones, £20 gift vouchers are popular gimmicks used to pull in the students. However, what the student doesn’t realise is that student banking is very valuable to banks as long-term most students will remain with their banks for a very long time, therefore it is in affect a two way thing. Graduate Loans, of upto and around £10k, are also available to most individuals once they have completed their course and these are quite good for helping graduates all those things that are essential to tide you through that period of looking for a job and need to look the part. At the same time they are designed to ensure that clients once graduated stay with their banks for longer & once securing that job will bring in more money for the banks, no longer in the form of interest. Student Loans These days, for most students it is actually imperative that they take out a student loan, it is seen a as a life saving device for most students, as a part time job is usually not enough to support a student lifestyle. Having said that, many students do not realise that although the loans interest is said to be calculated at inflation rate, this does not stop the interest from accumulating each year and with each loan the student takes out and since when has inflation rate stayed constant? Student loans do not need to be payed back until the April after the individual has graduated and can usually be deferred by a year if the graduate does not earn at least £18.5k per annum. However, this does not mean the interest does not continue to accumulate. Thus, it would be a good idea to start paying your loan back sooner rather than later. Loans, overdrafts, credit cards are all a good idea but not all students manage their monetary affairs very well, and even the best of us can get carried away, especially with all the added pressures which come with student life. Students should try and be careful of the amount they borrow because ultimately it all has to be paid back with interest. Nothing is for free. Think carefully before you borrow, do you really need it? Can you do without? Will you be able to pay it back? Ø Most students at some stage take out a loan in some point of their degree to help finance their studies and take some of the pressure off. Ø Loans are a good idea but not all students are good idea but not all students manage their monetary affairs very well. Ø Once graduated, the graduate will now have to think long-term and the reality of paying back the loan and overdraft. Ø The Student Quote Share this post Link to post Share on other sites
N.O.R.F Posted June 16, 2003 Thanx for the reminder NOT The whole system is designed for the middle classes who are able stave off that tempting loan. As for the so called lesser so and sos, this loan will haunt us for a very long time. One piece of advice, pay back more than the minimum per month, therefore paying less back (as a whole)than if u pay back the minimum. Interest rates are a mutha! Quote Share this post Link to post Share on other sites
Khayr Posted June 17, 2003 Salaamz, I was trying to see the other day if I could pay the interest on my loan for a yr. but I was told that I couldn't. I always have to pay the interest on a monthly basis, never ever really deducated from the principal untill they have made twice the money off me that I borrowed off them. Quote Share this post Link to post Share on other sites
king_450 Posted June 17, 2003 yes indeed, it is sad but it is one we must accept it, student loan( you are n loan ) but look at the bright side, if you work hard you should be able to fullfill all, life is a two way street, don't give up, finish ur study and the rest will take itself, to be honest i am scary too by the time i finish my studies, i will owe roughly $125,000 us dollars, and i don't know how i will pay it back, but you know i am not even worrying about it now, but as time comes along i will charge that to the consuremes to pay it for me, walla that is how i am going to pay back , every dollar i will charge 2 dollars for my sevices, how else, good luck Quote Share this post Link to post Share on other sites
Coloow Posted June 17, 2003 I agree 100% but do we have alternatives? other sources of income. I have been studying at a higher level of education for the past 11 years and accumulated a loan of approximately 60 000 US dollars, which I have started to repay (8 % of my gross salary). In some countries in northern europe, you are exempted from loan repayment of you die, reach the age of 65, disabled or become seriously ill. In some cases, somalis have been granted debt relief if they go back to somalia. Quote Share this post Link to post Share on other sites
Dhimbil Posted June 19, 2003 In some cases, somalis have been granted debt relief if they go back to somalia. Entre..is that true? can you tell me how to go about doing that...am loaded with loans and will be loaded even more after graduation. Dept relief plus somalia sounds priceless to me Quote Share this post Link to post Share on other sites
