Pursuing higher education in the UK these days is rather expensive – as the BBC recently showed, a student can end up with over 25,000 pounds of debt after finishing college. And unfortunately, the living accommodation fees as well as the tuition fees are expected to grow in the future. While having a college diploma will surely enhance your chances of getting a well-paid position after graduation, it’s also true that few of the students in this situation are earning enough to handle the debt accumulated during the college years.
The student debt levels are alarming
University loans were first introduced in the UK in 1990 as a replacement for the special grants offered by the British government. While there is no denying the fact that they permit numerous students to attend university, the problem arises when the loans have to be repaid as soon as the graduate gets a job with an annual income of 21,000+ pounds. According to the British authorities, this rule does not just apply to post-graduates with a full-time job, but also to those who land a part-time job and students who are working (part-time or full-time) while simultaneously undergoing college courses. Therefore, the vast majority of college graduates are finishing college sunk in debt and with limited possibilities for a fresh start.
University loans were first introduced in the UK in 1990 as a replacement for the special grants offered by the British government. While there is no denying the fact that they permit numerous students to attend university, the problem arises when the loans have to be repaid as soon as the graduate gets a job with an annual income of 21,000+ pounds. According to the British authorities, this rule does not just apply to post-graduates with a full-time job, but also to those who land a part-time job and students who are working (part-time or full-time) while simultaneously undergoing college courses. Therefore, the vast majority of college graduates are finishing college sunk in debt and with limited possibilities for a fresh start.
A potential solution
However, the good news is that you can consider unburdening your post-graduate financial situation and gain control over the debt amassed from university loans, tuition fees, school loans and credit card dues by consolidating what you own with a secured loan. As the name of the loan suggests, you (the student along with the parents who own the house) can raise a certain sum of cash based on the level of equity in the home. While you have the possibility of choosing the term of the loan, the maximum cash you can borrow is usually based on your income, value of the home, expenditure, credit rating and equity.
However, the good news is that you can consider unburdening your post-graduate financial situation and gain control over the debt amassed from university loans, tuition fees, school loans and credit card dues by consolidating what you own with a secured loan. As the name of the loan suggests, you (the student along with the parents who own the house) can raise a certain sum of cash based on the level of equity in the home. While you have the possibility of choosing the term of the loan, the maximum cash you can borrow is usually based on your income, value of the home, expenditure, credit rating and equity.
It is important to note that financially responsible parents (the owners of the home) will actually have a high chance of getting a suitable loan that will not overburden them and help their child graduate with a clean slate at the same time. Overall, taking out a loan against your home is preferable to leaving the graduate struggling in debt or worse, declaring bankruptcy soon after he/she entered the working class. At the same time, consolidating the debt via a secured loan does not only mean a clean credit history for your child, but also a great opportunity for you to increase your credit score by reducing the number of credit accounts you have opened.
Perhaps the biggest perk you can gain by consolidating the student loan with a secured loan resides in the fact that you have the possibility to lock in a low, convenient interest rate. Considering the increasing living expenses and overall insecurity of the markets, can you really afford to risk paying higher interest rates in the near future?