Student loans are a good thing if you have no hope of finding the money to fund your education otherwise. I personally took out student loans to provide me the opportunity to study at university. Was it worth it? This all depends on the individual.
Before student loans were introduced student were given grants which would cover the costs incurred during further education. However, with more and more people seeking u university education, this was not sustainable and the government introduced fees and reduced grants.
One advantage is that this made students a lot cannier about money. For example, many of them were leaving university and immediately declaring bankruptcy or taking out an IVA to avoid paying their student debts. This is a loophole which is now legally closed.
In summary student loans in general are a bad thing. It simply suggests that not enough money is being put into institutions to afford the excess number of students today. Why should someone become burdened with debt simply to further their understanding in the world or a particular topic? Barbaric and outdated.
Student loans should be used by only those who require this financial assistance.
The financial help a new full-time student can get depends on the course, where they live while they are studying, and their individual circumstances.
Committing yourself to debt is an important decision to make, and students should not see this as free money when they go to university, or an excuse not to get a part-time job during their studies. Many individuals have no choice but to opt for the student loan route, due to lack of help from parents, lack of savings or lack of employment during their studies. In this case, taking out a student loan may be the best option for these individuals. However, if you are in a position to plod on without taking out this loan, or getting involved with apparently cheap credit cards, then it is advised that you do so.
It is only when you reach a certain level of earnings that you have to start paying back your student loan, but this should be a warning to all students out there. As graduates struggle to find well paid jobs and get a foot on the housing ladder, the last thing you really need is to be hit with debt repayments to the student loans company when you start to earn.
The best advice is to be sensible. If parents can help you, then take it. In the long term it is worthwhile not to be burdened with the repayments. However if you do need this financial assistance then go for it, but ensure that you are prepared for the future implications on your earnings once you reach the threshold.
Student loans are definitely good, as a third year student its very hard to get through all the course work, hold down a day job and pay all your bills.
Without a student loan I would not be able to keep a roof over my head as I am studying away from home. I would not be able to afford the course materials and I would be eating pot noodles seven days a week rather the three days a week I am eating them just now.
I understand that I will have to pay it back one day, but by that time I will be in a good job with a reasonable salary and I will be in a position to do so. The long term nature and the low interest rate of the loan makes this an ideal way for me to get through my studies without putting myself into “dangerous†debt elsewhere.