What do we mean by student loans?
Student loans are such loans which help students to complete their studies. Of course, it helps to pay for their tuition fee, books and stationary charges and living expenses. These loans are an initiative of the government. In addition, there are a few private lenders in the market who provide student loans at cheap rates. Generally, These loans help students in their post-secondary education. In our country, primary and secondary education is not expensive. Students may seek loans for their further education.
How does it work in our country?
Apparently, In the United Kingdom, student loans program are state-owned governments’ affair. Student loans company sanction these loans. The calculation of the rate of interest on loan starts right after the disbursement. Also, a student does not have to pay it for that financial year. Likewise, he waits to finish his studies. Similarly, he may quit or complete the studies. Her Majesty’s revenue & customs have been collecting repayments since 1998 for this loan.
Terms and conditions of student loans:
First of all, a student is a borrower on this loan. The repayment of the loan depends on his income. If he gets less salary as per tax year. he does not need to pay repayments. In addition, his interest keeps getting accumulated.
A loan is automatically considered cancelled if the loan holder gets disabled permanently. If the loan borrower dies, the loan gets cancelled on it own.
Students loan policies are different in all the counties. Overall, a loan gets over after a certain period. As a result, it gets over after 30 years in many of the places in the country.
Cons of student loans:
Above all, There are frequent changes in terms and conditions of student loans. There have been some registered complaints that students have paid their loans completely. But there had been a reduction of approximately 300 pounds from their account yet. Also, it happens on monthly basis. On the contrary, one can not stop it.
The term of the loan gets too long. Apparently, students lose a big chunk of their income in repayments and do not feel good about it. If they get some low salaries, it becomes difficult for them to pull money in instalments.
In the end, Student loans are a good initiative by the government. it is a service which helps many students every year.
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