Many people need to ask it of us and ask it often. Over the past few decades, being a student has become an increasingly expensive endeavour. And many people look to take on alternate forms of debt, such short-term loans, in addition to the student loan choice. Is this ever advised, though. We discussed this conundrum of loans for students, and whether they are ever advisable.
Loans For Students – Certain Criteria
With so many expenses in life, as there are for everyone, being a student in the UK can be challenging. Although the purpose of the student maintenance loan is to pay for a student’s daily costs, many students discover that it falls short.
Your financial position will determine if you qualify for a maintenance loan. You will receive the bare minimum of £3,928 per year, which will not go very far if your parents make more than £62,187 annually.
Student Life Is Expensive
Even the maximum loan of £8,430 for a household earning less than £25,000 may be challenging to get if you reside elsewhere in the UK. Studies show that student housing generally costs £87 per week. This translates to £3,480 in annual lodging costs. Most students will struggle to pay for food, books, transport, and other necessities of everyday life even with a full maintenance loan.
Loans For Students – Could Your Family Help?
The parental income determines the size of the maintenance loan. This is so that parents can be counted on to provide financial assistance for their kids when they pursue higher education. But this does not necessarily mean that they will. The majority of parents cannot afford this amount of assistance. Therefore, the student is in charge of making up the gap between the loan and the actual cost of living while attending school.
Should Students Get Loans?
We’ll get right to the point and say that no, you should always think about your other possibilities first. Of course, the first and most obvious option is student loans. They won’t need to be repaid until a predetermined wage is reached and will have lower interest rates. But there are solutions to every kind of debt.
Students should only turn to short-term loans as a last resort until further funding becomes available. The interest charges that will be factored into the payback amount will be detrimental to those on a tight budget.
Alternative Options
Universities hire student financial counsellors, who can be a great resource for advice. Look for them if you’re struggling to make ends meet. In order to supplement your income, look for part-time work. The majority of degrees give you plenty of time to complete this.
Each year, scholarships, grants, and bursaries help thousands of people. See if you qualify for one by checking. Try to be as frugal as you can and maximise the use of your money. Additionally, find a bank that offers an interest-free overdraft option if you need one so you don’t have to pay anything if you use it.
Always seek advice if you’re struggling to make ends meet.
