In addition to this, paying for college is getting even harder. After college, most would just spend the first five or ten years of their life paying off their college loans. You might have sacrificed many things to help you get through college, but the money that you need to borrow just goes on and one. Even with small amounts, money borrowed is still money borrowed. The only way out for many students is to declare bankruptcy, and before 2004, doing this was fairly easy. However, the government has revised its laws, and even you declare bankruptcy, there is still a requirement for you to pay back what you owe.
There are many students who have this problem even before they graduate. There are financial institutions that will require you to pay the interest depending on your agreement. The pay is based on the current inflation rate. But whatever the financial institution says about paying only the interest, the amount you still need to pay per month as a student will force you to get a part time job. Some students can’t afford to have another job since it greatly disrupts their concentration and stress, and the job can become just be another problem to tackle. The good thing is that you just need to pay the base of your loan and you are not obliged to pay them if your yearly salary doesn’t reach 15,000 €.
The government on the other hand also has their own method of assisting the students who go to college. It’s the same method that is used by the privately owned financial institutions. For example, if you started your college courses in 1998, you need to pay when your yearly earnings reach 15,000 €. After that, you have to pay for your student loan monthly based on the earnings that you make. This burden is already anticipated by most students, and it’s causing a great deal of concern for everyone. No wonder many new graduates opt to stay with their parents for a while until they can pay off all their student debts. Student loans could be an emotional burden since students have to endure many pressures after they graduate. They are under a great deal of pressure to earn money for themselves and for the student loan, and they must also transition from the fun life of being a student to facing the real world.
Students in the UK should be aware that these loans still must be paid for after they graduate, whether they get a high paying job immediately or not. Avoid bankruptcy so that your life will not be marred by bad credit. It is important to avoid getting a large number of student loans, as they can be difficult to pay off.
