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Saturday, March 13, 2010

Is it the End For the Student Loan?

In these desperate times students are now finding that they are unable to meet the repayments on their student loans. Recent figures have shown that nearly 400,000 graduates still haven't started to make any repayments on their student loan even seven years after graduating.

These figures are coming from the fact that during the credit crunch many employers have cut back on the amount of people that they are employing, this means that students are finding it increasingly hard to get themselves into employment with a wage higher than the £15,000 threshold. Of course, as long as they are not earning over this amount they are exempt from paying back their loan.

Some student lenders are now warning that there could be an end to cheap student loans in order to try and keep up with these troubled times. With financial matters in their current state students are finding it increasingly hard to make ends meet as it is. If the price of their students' loans were to increase then there are worries that many people will be put off the idea of carrying on into further education.

Some students from wealthier families have commented that their parents are willing to pay for their student fees and others are willing to take on part time jobs to help pay for them. Saving up has become increasingly popular amongst some students who are trying to pay them off on their own.

The average student debt of a graduate leaving university is around £20,000. This is accumulated over a number of years after paying for tuition fees, accommodation and food and drink. Living at home with their parents and staying at a local university is also becoming increasingly popular amongst students to try and cut down on as many costs as possible.

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