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Student loans: everything you need to know

Written by Ipswich Building Society

7 Jun 2021

Tags

Savings, Student loan

3 min read

For those leaving university there are various things to consider, including the stresses of securing their dream graduate job. But many also have questions about how much their time at university will cost them in the long run, so here’s everything you need to know about student loans and finances.

How much does it cost to go to university?

The price of university has often been misunderstood and ultimately stigmatised to be only available to certain people. Student loans, as set up by the government allow all students to pay off their yearly tuition fees and repay as and when they are eligible as graduates. For living costs, maintenance loans which are worked out by your parent’s income can help a long way in affording to live at university. This loan varies on your situation with more information available here, including a breakdown on how much you could be entitled to.

How much money would I spend at university and will I be able to save?

Ultimately this will come down to how much you spend out of your own pocket on living, whether that’s the food you buy or how you spend your spare time. There are plenty of ways to save money, setting up a budget for food shopping, going out and other activities will allow you to keep track of finances and keep spending down where possible. We have plenty of saving and budgeting tips to read here.

How and when will I repay my student loan?

You will only begin to repay your student loan as a graduate when you earn over £27,295 a year, with it being fixed at 9% thereon. If your wage changes and you earn less than the threshold again, your repayments will change as applicable. After 30 years your student debt will be wiped, regardless if you have paid any of your loan off at all.

Key student loan facts

  • Many people earning over the threshold still won’t pay back their loan in the 30 years, so don’t worry if you aren’t repaying yet
  • Student loan repayments are paid through employer payroll, removing the worry about possible debt collectors
  • Monthly repayments are calculated from wages earnt not your course tuition fees, meaning all are the same regardless of your degree choice
  • Importantly, your student loan does not show on your credit report. So will not impact financial applications such as mortgages further down the line

This article was published under our previous name of Ipswich Building Society. We changed our name in 2021 – find out more.

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