If there is one thing all students fear when it comes to university, it is the prospect of getting into debt. There is no denying that further education is expensive, and it seems to be getting more and more costly with every year that passes by. Of course, education is an investment, but with no guaranteed job at the end of it, it can be a worry. With that being said, it is important to be fully aware of what you are getting yourself into when agreeing to a student loan. Read on to discover some of the most common myths about student loans to help you get started.
The loan will cover all of your living costs – One of the biggest mistakes that students make is assuming they have been granted ‘x’ amount because this is all of the money that is required for living costs while at a university. However, you will quickly find out that this is often not the case. The best thing to do is draw up a budget. Make sure you include all of the costs – from your academic materials and socialising expenses to food, bills, and rent. This will give you a true picture regarding the money that you are going to need.
Moving abroad means I do not need to repay my loan – This is one of the biggest rumours that is floating around with regards to student loans. A lot of people assume that if they move away from the country where they studied, they won’t have to pay their loan back. This could not be further from the truth. If that was the case, we would all simply jet to a new location once we finished our degree. Head to https://www.mirror.co.uk/money/how-out-debt-tips-back-11840089 for tips on paying your loan back if you are struggling.
You could end up going to jail if you don’t repay your loan – A lot of people assume that they are going to end up in huge amounts of trouble if they do not pay back their student loan. This is not the case. Contrary to popular belief, you cannot go to jail for owing money, irrespective of the type of loan that you have taken out. Nevertheless, there are plenty of different options if you are struggling to repay your loan such as refinancing, consolidation, disbursement etc. Head to refinancestudent.loan for more information about this. This gives you the option of making your repayments more manageable if you are struggling in the future.
As you can see, there is a lot of misinformation on the Internet when it comes to student loans today. However, hopefully, you now have a better understanding regarding this option when it comes to financing your education. Of course, going to university is a great investment that can set you up for life. Nevertheless, it is important to fully understand the financial ramifications so that you are well-prepared.