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There you were, chilling out, young, and carefree. Life was good. Until…
TUITION FEES INCREASE
What were you to do? There was no way you can afford the increase in fees AND the living costs
– or could you?
Firstly, you don’t need to pay anything straight away.
You’ll get a loan, for your fees and your living costs, which
you don’t need to pay back until you’re earning over £21,000.
So, say you’re earning 22,000.
Then you will pay back 9% of your income above £21,000.
Or to put it another way, £7.50 a month.
About the cost of a small takeaway pizza (pause) or a trip to the cinema
If your salary is £ 25,000, you’ll pay £30 a month
About the cost of a mobile phone contract
In fact , under the new loans system,
students are £540 better off every year than students on the
previous scheme – with more money in their pocket.
Your repayment comes out of your paycheque each month,
before it even gets to you – just like tax.
But we’re not going to sugar-coat it for you
Depending on what you earn, you could be paying more
money back for longer, perhaps most of your working life.
However, after 30 years your debt will get written off.
Most people will never have to pay off the full amount, and
the repayment scheme is designed to be affordable.
You will be charged interest on your loan from the moment
you take it out, but the amount you pay back each month won’t be affected by the interest
you’ll only need to payback 9% of your income over £21,000.
Plus this debt isn’t considered in your credit rating, which
helps when applying for mortgages and credit cards.
You can also view it as an investment, as graduates earn
an average of £12,000 a year more than non-graduates,
over their working life (According to the office for National Statistics 2011)
So – can you afford to go to University? Well, that’s up to you.
Going to University is a big decision. Take time to weigh up
the pro’s and cons and make a choice that is right for you.