What happens after?

Tommy99

Hello

I am 23 and still have 2.5 years to go until i finish university, i am getting extremely worried that i am going to be at a huge disadvantage when i leave.

I already owe 2 years of loans which are around £20,000 with interest.

So, after i finish i will have around £45,000 of student loans to payback. When it comes to wanting to buy a house where do i stand?

Do i leave now or continue, people say that this is the best type of loan around, but i do not see that at all...

Thanks

Tom

Robert_Sterling_3

Perhaps in 2009 students should "work their way through college".
i.e. Part time job during term time --- Full time job during some of non term time.

Oldernotwiser

Tommy99 wrote: »

Hello

I am 23 and still have 2.5 years to go until i finish university, i am getting extremely worried that i am going to be at a huge disadvantage when i leave.

I already owe 2 years of loans which are around £20,000 with interest.

So, after i finish i will have around £45,000 of student loans to payback. When it comes to wanting to buy a house where do i stand?

Do i leave now or continue, people say that this is the best type of loan around, but i do not see that at all...

Thanks

Tom

Your Student Loans are not taken into consideration when applying for a mortgage or other credit. You will also not have to repay them until you are earning a decent salary and if you don't achieve this then you'll pay back nothing.I don't know what salary you hope to be on when you finish but if you earn £25,000 you'll only be paying back £80 per month, whichis hardly budget busting.

If you finish now you'll have £20,000 debt with nothing to show for it, which seems pretty pointless. Student Loans really are user friendly and the amounts borrowed shouldn't put you off, even if they are a bit scary at times.

Oldernotwiser

Robert_Sterling wrote: »

Perhaps in 2009 students should "work their way through college".
i.e. Part time job during term time --- Full time job during some of non term time.

I think you'll find that this is what most people do anyway, unless they have very supportive parents.

Tommy99

Robert_Sterling wrote: »

Perhaps in 2009 students should "work their way through college".
i.e. Part time job during term time --- Full time job during some of non term time.

I already have 2 jobs at university a bar job and a part time day job. Then during holidays i do arleady work full time. Problem is more that cos the goverment expects parents to contribute when they earn a certain amount, does not work. My parents earn over the £65,000 but they have there own bills to pay, i.e. mortgage, concil tax. I do support myself as mych as possible, i budget well and so on.

All i am worried about is being in debt for the forseable future after. One of the reason i want my degree is so i can move to Australia or the USA. But, with this loan it concerns me that i will not be able to.

Oldernotwiser

Thank you for your response, i know leaving is the wrong things to do, it was just a passing thought that all. i know that if i leave now i will have nothing to show for it, and the best thing is to continue.

Thanks

Lokolo

No offence but if you have 2 jobs and still struggling you might want to sort it out? How much do you earn a month and how much does it cost for you to live? Rent, food etc. then we might be able to cut down on your spending?

Tommy99

Lokolo wrote: »

No offence but if you have 2 jobs and still struggling you might want to sort it out? How much do you earn a month and how much does it cost for you to live? Rent, food etc. then we might be able to cut down on your spending?

Hey

I am not struggling at university, i am fine i budget well and things i have around £120 a week. Which some of goes towards my rent and bills.

It is more the after university than now, the struggle of getting a house and so on.

Tom

Oldernotwiser

Tommy99 wrote: »

All i am worried about is being in debt for the forseable future after. One of the reason i want my degree is so i can move to Australia or the USA. But, with this loan it concerns me that i will not be able to.

There's no reason for this to be a problem in the future. You can live and work abroad and repay your student loan appropriately whilst you do so. As I said, they're totally separate from any other financial system.

Tommy99

Oldernotwiser wrote: »

There's no reason for this to be a problem in the future. You can live and work abroad and repay your student loan appropriately whilst you do so. As I said, they're totally separate from any other financial system.

OK thats great news, my mind is now at rest...:cool:

Oldernotwiser

Just so that you don't have to take my word for it:

"If you are planning to live outside the UK for more than three months, you must inform the Student Loans Company before you leave.
You will be asked to complete an ‘Overseas Income Assessment Form’, giving details of your income and employment status.
The Student Loans Company will then send you a letter that:

• confirms whether repayments are due
• if applicable, notes your monthly repayment amount
• helps you to arrange direct repayments

If you do not inform the Student Loans Company about your circumstances, you may be subject to penalties.
If you move outside the UK for less than three months, you will continue to be treated as a UK taxpayer - you do not need to inform the Student Loans Company before you go.
Completing the Overseas Income Assessment Form

Completing an Overseas Income Assessment Form allows you to provide details of your circumstances and prospective income.
When completing the form, remember:

• to specify the currency of any earned/unearned income
• to send evidence that shows the Student Loans Company how you support yourself financially
• to sign and date the form - if you are signing on behalf of the borrower you must enclose a letter from them, giving you authority to do so"

from https://www.direct.gov.uk

Fire_Fox

Tommy99 wrote: »

Hey

I am not struggling at university, i am fine i budget well and things i have around £120 a week. Which some of goes towards my rent and bills.

It is more the after university than now, the struggle of getting a house and so on.

Tom

Does the £20k debt so far include your tuition fees? You still seem to be a lot in debt for someone who has two jobs. On the Debt-free Wannabe board there are entire families living on £4000 a year, plus mortgage/ rent and council tax (which students don't pay anyway). Perhaps you would consider posting a Statement of Affairs (link on sticky on DFW board) and trying to cut down your spending now, hence reducing your predicted debt.