Various news reports in different locations have reported, yet again, a chain of university funding system stories. They covered the said topic due to a new government-sanctioned report. All of these don’t sit well with most parents, especially university students.
It is absurd to think that affording an education is projected to become more difficult as the years go by. Higher education costs are not allowing much deserving college students to get a degree. The fact that the tuition costs have skyrocketed over the course of time have elicited genuine confusion, anger, and disappointment for millennials.
Aside from this, they are also thinking about the time wherein they will eventually pay back the debts accumulated during the course of college years. It will also cost their dreams to land a high-paying job after finishing university. This is a pressing issue that is always believed to be addressed by higher-ups, specifically politicians.
But amidst the conversations about higher tuition costs, technical fees, and whatnot, many breathed a huge sigh of relief upon knowing that the repayment costs for recent graduates are on the rise again. This is applicable to those students who are required to pay back 3% above an inflation rate with an increasing trend.
How will this work for me?
Lowering the designated earning level from the point of your repayments, payment of £180 more will be made annually. Furthermore, an extension of repayment duration starting from a maximum of 30 years up to 40 years.
“So does this mean that more and more students are going to end up completely buried in debt?”
Not really. Student debt is marked off, unlike normal debt. Thus, it will depend on how much cash you earn, and hence have to repay. Take note that it doesn’t lie on the total you have borrowed. As of the moment, most graduates have a high chance of not doing repayments for all the loans they got in full before their account is erased from memory beyond.
What about those students who have it hard?
Sugar would also replace up to £3000 of the loan with a grant, for the lowest-income students. But if they became moderate earners, it would make little difference. Only that small proportion of higher earners who will pay off their loan in full would benefit.
How about for a millennial graduate? Will we ever benefit from this?
Of course, there is a benefit. Being recognized by various reports that student debts are considered a dangerous misnomer. Being a threat prompted many people to pay for everything early.
Have you ever thought about your loan? As long as you think carefully in choosing what loan best fits you, then you are good to go.