Being a university student comes with a lot of responsibility, especially in terms of finances. There are so many different things you need to remember that It can be hard to figure out which ones are real and which ones are simply myths. Here are 7 student finance myths that you don’t need to worry about…
“Student debt affects your credit score”
If you have a student loan it will not affect your credit score, but if you are applying for a mortgage or anything that requires an affordability check it is usually best to let them know about your student debt.
“No student finance if you applied through Clearing”
You can still apply for student finance if you have gone through clearing but you need to apply for it quickly as it can take up to six weeks this to be processed. If you have already applied for student finance but have changed course/university you need to update your student finance information.
“It will take the rest of your life to pay off your student loan”
You only need to worry about repaying your student loans once you start earning above a certain annual salary. But depending on your plan, your student loan will be written off after 25 or 30 years.
“It’s cheaper to study outside of England”
Nope, many universities in America and Australia have higher tuition fees than those in the UK, and it can be expensive to study in Europe now that the UK is no longer part of the EU. Many people also think that Scotland is cheaper, but this is only for Scottish students, as the SAAS cover the tuition fees of Scottish students.
“Parents can’t help with your student finances”
When a student applies for their student finance, parents may need to let their child know their annual income so the finance team can work out how much student finance the student is eligible for. If the students’ maintenance loan isn’t enough for them to live on, parents are allowed to give their child any extra support they may need if they are able to.
“Your student loans interest rate will keep increasing”
During your studies, and then depending on your annual income when you get a job, will determine how much increase you pay. But this will be a set amount and will not keep continuing to increase. For example, for the 2019/2020 academic year, you have 2.4% interest if you are earning less than £26,575 a year and 5.4% if you are still studying or earning more than £47,835.
“Student finance applications take months and months”
Student finance applications take about 6 weeks to be processed so it is best to apply as soon as possible in case there are any issues with your application that results in a delay.
