5 things about student loans you may not know

Tuesday, 26 July 2016
Students can’t live solely on maintenance loans The average student spends around £745 per month but the average maintenance loan is £480 (the Government Student Loans, known as the Student Loans Company, provides two types of loans: a tuition fee loan and a maintenance loan, the latter to cover living expenses). And it’s not all just spent on socialising, three quarters of the £745 budget is spent on basic amenities like rent, food and travel.
 
Parents in student debt
Parents are the second highest lenders with 71% of students getting a ‘lend’ of cash for college. This is often in conjunction with a Government Student loan. Most parents are happy to help where they can, but some households are paying up to £650 per month!
 
There is a new solution
An alternate solution for parents is to act as a guarantor on their child’s loan. Guarantors will sign a loan agreement on behalf of the student. Some parents feel this is a great way to support their child’s education without putting financial strain on themselves and the household.
 
Students are resorting to payday loan companies
There was a small, but significant, uptake of payday loans amongst students. These loans require applicants to repay their debt on receipt of their next paycheque at a very high rate of interest. The number of students resorting to these types of loans increased from 1%-3% in 2015.

Money troubles
A recent survey made in conjunction with the NUS, captured the financial atmosphere of the student populace with 30% of students saying they worry about money “all the time”. Some students have resorted to medical trials, gambling and busking to help pay for life in university.
Future Finance is the only student loan specialist in the UK. With smart, fair and flexible loans students can avail of a unique offering that will enable them to rise up and reach their potential. With a loan from Future Finance students can make lower repayments while studying (capped at £75), benefit from reduced interest rates on graduation and can take up to four 3-month repayment holidays. The average APR is just 11.2% (variable) and can be repaid over a 10-year period with no early repayment fees.
This content is produced and sponsored by Future Finance.