The Pros and Cons of Student Loans*

The last two weeks saw both A Level and GCSE students getting their results. It’s now over half my life since I got my GCSE results, and almost half my life since I got those A Level results that helped me decide which course my future was going to take. I went on to do a degree in Drama and Theatre Studies and while I have so many regrets about my choice of degree (it’s pretty useless and I can honestly say I barely mention it these days when it comes to jobs and qualifications), I have no regrets about going to university. I grew up in a small town in the middle of nowhere, where generations marry generations of other local families. I needed to get out there and get the experience, and I am so glad I did. I just wish I’d picked a better degree, but hey, I’, not the only one in their 30s that feels that way.

So if you, or your child were one of those people collecting results over the last two weeks, it might be time to start considering everything that goes along with applying and attending university. There is no doubt about it, one of the biggest things to think about is money. And if you come from a family that don’t have money to pour into your education, you’re probably already thinking about a student loan.

Yes, at 16, the word “loan” is terrifying. But the stark reality is that most people you attend university with will have one, and that day your student loan “comes in” is honestly the sweetest day on campus. Yes, it’s reckless to go blow hundreds of pounds in Topshop, but everyone is doing it and I assure you 14p noodles aren’t that awful to live on.

• Yes i’m aware there will be some super sensible people out there with their loans and actually live on them properly, but that wasn’t part of my uni experience, and again, no regrets!

Of course, a loan is a loan and it’s not all fun and games, so I’ve put together a handy pros and cons list to decide if this will be part of your university experience or not. And hey, if you have a way already to get through uni without any loans, I’m nothing short of jealous!

Pros

Student Loans Let You Go to University

At the end of the day, a student loan is a way to afford further education. We don’t live in a world where it’s free so it’s pay or don’t go and if you need a degree to get the job you want, there is little else you can do. A student loan isn’t exactly the same as a regular loan, it’s one of the few you can take out with ease and without a whole credit history behind you. The repayment terms work differently too. It’s important you do your research and learn more to help you decide what to go for.

Student Loans Take the Pressure Off Your Parents

Let’s be honest here, the vast majority of us aren’t in a situation where our parents can really help when it comes to further education. Tuition fees are astronomical and then if you choose to live away from home, you have living costs too. It’s a lot to expect your parents to help out with and with the hours you need to put in to pass your degree, working full time isn’t something many people can do either. Student loans can ease that pressure on both parties as you know your tuition and living costs are covered before term even begins.

Cons

You Start Your Adult Life Already in Debt

As I mentioned above, a student loan is still a loan, even if it’s not the same as a regular bank loan so you do still come away from it with thousands of pounds worth of debt. While it doesn’t affect your credit score, it is still a burden to carry and for a lot of people depending on how much they earn, carry through their whole life. I think I’ve paid off a grand total of £325 of mine and I’m 33 as it automatically comes out of my account when I earn over a threshold. I know it’s there and it’s not a nice feeling and for some people with money concerns, it might not be something you wish to carry through life.

It Can Take a Long Time to Pay Off

As you can see from my above comment, it can take a long time to pay off. If you happen to come into a lump sum you are able to pay it off that way, but this isn’t the case for a lot of people and if you never get the job you worked hard for your degree for and it never helps you, it can feel like a lot of wasted money that you owe for your whole adult life!

There is a lot of help you there for students when it comes to finding the right loan for them, and maybe you’ll even be lucky to get some bursary or financial aid that helps cover some of the cost, but the fact of the matter is, you’re probably going to need a loan if you want to go to university, and it’s up to you to decide if it’s worth it!