The Facts about Fees: Student Loans 2012

There you were, chilling out, young, and carefree Life was good

Until… TUITION FEES INCREASE What were you to do? There was no way you can afford the increase in fees and the living costs or could you? Firstly, you don’t need to pay anything straight away You’ll get a loan, for your fees and your living costs, which you don’t need to pay back until you’re earning over £21,000 So, say you’re earning 22,000 Then you will pay back 9% of your income above £21,000

Or to put it another way, £750 a month About the cost of a small takeaway pizza or a trip to the cinema If your salary is £ 25,000, you’ll pay £30 a month About the cost of a mobile phone contract

In fact , under the new loans system, students are £540 better off every year than students on the previous scheme – with more money in their pocket Your repayment comes out of your paycheque each month, before it even gets to you – just like tax But we’re not going to sugar-coat it for you Depending on what you earn, you could be paying more money back for longer, perhaps most of your working life However, after 30 years your debt will get written off

Most people will never have to pay off the full amount, and the repayment scheme is designed to be affordable You will be charged interest on your loan from the moment you take it out, but the amount you pay back each month won’t be affected by the interest – you’ll only need to pay back 9% of your income over £21,000 Plus this debt isn’t considered in your credit rating, which helps when applying for mortgages and credit cards You can also view it as an investment, as graduates earn an average of £12,000 a year more than non-graduates, over their working life (According to the Office for National Statistics 2011) So – can you afford to go to University? Well, that’s up to you

Going to University is a big decision Weigh up the pro’s and cons and make a choice that is right for you