It is a question many ask us, and many need to ask. Being a student has become an increasingly costly business during the past couple of decades. And apart from the student loan option, many look to take on alternative forms of debt to see them through, such as short-term loans. But is this ever advisable. We debated the dilemma over this, and should students take out loans?
Student Loans Are Not Available For Everyone
If you are a student in the United Kingdom, it can be difficult to get by with so many costs in life, as there are for everyone. The student maintenance loan is intended to cover a student’s day-to-day expenses, however many students find that it is insufficient.
The maintenance loan is based on your financial situation. If your parents earn more than £62,187 per year, you will receive the bare minimum of £3,928 per year, which will not stretch very far!
Should Students Take Out Loans? – Being A Student Is Expensive
If you live away from home in the UK, even the maximum loan of £8,430 for a household income of less than £25,000 may be difficult to obtain. According to studies, the average cost of student housing is £87 per week. This corresponds to £3,480 per year in just lodgings. Even with a full maintenance loan, most students will struggle to pay for food, books, travel, and other daily needs.
Help From Parents Is Preferable
The amount of the maintenance loan is determined by the parental income. This is because it is anticipated that parents will financially support their children as they pursue higher education. However, this does not imply that they will always do so. This level of help is out of reach for many parents. As a result, the student is responsible for covering the difference between the loan and the real cost of living at university.
Should Students Take Out Loans? – Are Loans An Option?
We’ll get right to the point and say that no, other options should always be considered first. Student loans are, of course, the first and most obvious choice. They’ll have cheaper interest rates and won’t have to be paid back until a set wage is reached. There are, however, alternatives to every sort of debt.
Short-term loans should only be used by students as a last resort before more finances are available. Those on a tight budget will be hurt by the interest charges that will be included in the payback amount.
Should Students Take Out Loans? – Other Options
Student money counsellors are employed by universities and are a valuable source of advice. If you’re having trouble making ends meet, look for them. Look for part-time work to supplement your income. Most degrees allow for ample free time to do this.
Thousands of people each year benefit from scholarships, grants, and bursaries. Check to see whether you are eligible for one. Make an effort to be frugal and stretch your money as far as possible. Also, if you need to utilise an overdraft, look for a bank that offers an interest-free option so you don’t have to pay anything.
If you’re having trouble making ends meet, always seek guidance first.
