If you’re currently in university or graduated last year, I’m sorry to say that debt is probably going to be an ubiquitous part of your life from now on in. I can say this because (deep breath) I too paid £9,000 a year for university education. And although 27K of student loan is the price of a 2:1 in Religious Studies and Philosophy, the friends I made and the experiences were priceless.
But don’t panic that you’re destined to circle the drain with a looming amount of debt hanging over you, after all, you might not have even started paying it back. As of last month, I have paid £4.00 off of my debt meaning there’s only £26,996 left to go (and that’s only tuition).
Look, student loan is going to be a thorn in your side but it isn’t the kind of thorn that’s worth worrying over, here are five reasons why.
1. It’s a passive payment
What I worried about a lot when I got dumped with my debt is the reams of paperwork I might have to fill out. And, in fairness, a few months after moving home you’ll probably get a check up document or whatever. That said, when you start earning, the money will just get cut from your cheque – you won’t even realise it’s missing.
2. It’s the cheapest money you’re ever going to get
Speaking to ThisIsMoney, debt adviser Steve Rees says that parents and students shouldn’t worry and encourages you to: “pay off the loan at the normal rate, don’t pay it off early. This is the cheapest money a student is ever going to get” because there is no commercial rate of internet.
3. It gets wiped after 30 years
Some good news for the unambitious among you: if you don’t pay your student loan off in thirty years (bear in mind you’ll be 52+) the remainder of the debt gets completely wiped. Hooray.
4. Everybody’s in the same boat
Everybody around you, who went to university, will also have a crippling amount of debt. You can bond over it. Imagine meeting your future wife or husband by overhearing them moan about their student loan at a bar. You get talking and just like that, 30 years later, you’re still together, broke but student loan free.
5. You actually need a decent-paying job to pay it back
A student loan doesn’t need repaying until a graduate earns more than £21,000! (for now, there are plans to potentially bump up as average earning increase in 2017).