Graduating From University

After all the late night partying of university, what is the one
major hang over that most students are complaining about when
its all over and they’ve graduated? The answer is student debt
Student debt levels continue to rise every year as banks and
other lenders throw more and more credit their way while they
are still studying It seems as if the banks have plenty of
faith in graduates being able to pay back the loans, and most
graduates would confirm this What is causing graduates stress
is not toe overall levels of debt they have racked up while
studying, which still averages under £15,000, but the fact that
they have to pay such a high proportion of their new wages in
debt servicing
Graduation and the start of your working life are supposed to be
a time of relative prosperity and the privations and economies
of the student years should finally be over However, more and
more graduates are reporting that they have to pay so much in
loan repayments that they are just as badly off as when they are
students
For example, a huge proportion of student debt is made up of
government sponsored student loans, which come from the Student
Loan Company The repayment rules for these loans are quite
lenient Beginning in the April after you graduate, 9% of all
your earnings above £15,000 will be taken to repay the loans
The interest is also quite preferable
While this seems to be a fairly gentle way of repaying student
loans, it should be remembered that these not the only debts
that students have Student overdrafts of up to £2,000, which
are interest free, are now fairly standard practice Almost
every student will be given one when they open a student bank
account and it’s rare to find a student who hasn’t spent it all
Then there are credit cards and store cards, which are
increasingly easy to get your hands on Add to this the expenses
of moving home when you graduate, starting a new job, getting a
new place to live, and its no wonder that most graduates feel
every bit as financially constrained as when they were still
studying
There are graduate loans available however which can be used to
ease your way into working life These offer postponed repayment
terms so you have some time before you have to start repaying
them all The interest rates are generally pretty favourable and
combined with the repayment holiday, which might be up to two
years from graduation, you can really ease your way into working
life

Tags | credit, debts, loan, moving, overdrafts, privations, proportion, prosperity, relative, repaying, result, student