Consolidate Student Loans

Student debts worries as £200 monthly payment are the norm.

Student debt is still a major concern among graduates as the average student loan debt has risen to £15,000.  Struggling to pay mounting debts from university course fees and student loan debts, the student may qualify for loan repayment deferment should his income fall below £15kpa.  Repayments can be as much as £200 per month for graduates earning more than £15,000 PA which can affect further borrowing for other lending purposes. Most students seek ways to consolidate student loans and other student debts built over the years of study. Reducing monthy credit commitment being the primary focus rather than repaying the debts. Many do regret having ever taken out the loan and while it is certainly not compulsory for students to take out a student loan, they realise the increase in tuition fees, living expenses and social costs of university life are outweighed by better career prospects gained.

For graduates looking to get on the property ladder, the effect of increase in the monthly outgoing can a negative effect on borrowing potential from lenders. For a graduate earning £20,000 with a monthly student loan repayment of £200, this has the net effect of reducing the annual income by £2,400, bringing the annual income for lending purposes down to £17,600.

The material in this article is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions.