Simple Steps For Getting Approved For A Student Loan Easily
Harry October 18, 2022

The Student Loans Company has chosen Chris Larmer as its Chief Executive Officer (SLC). He will take over for Executive Director of Operations Paula Sussex, who leaves the organisation at the end of the year. Here we will discuss this news and what you need to know about student loans.

About the recent news

SLC has started a massive transformation project with the goal of putting in place more modern, customer-focused processes and technologies to help its eight million existing customers better. Because of this, the organisation's overall health has improved, and it has dealt with the Covid-19 epidemic while still helping a record number of students pay for school.

SLC will keep working toward its vision of creating opportunity and giving customers a great experience while also playing a pivotal role in bringing the UK Government's education reforms, like the new Lifelong Loan Entitlement, to life. This will be done while fulfilling its vision of making opportunities possible and giving customers a great experience (LLE).

The government backs the Student Loans Company, which helps students get loans to pay for college or university and help with living costs.

Some direct lenders, too, offer financial assistance to the students. For instance, installment loans for bad credit from direct lender only with no guarantor needed.

The terms of these loans will differ for each student, depending on things like

  • When they started school?
  • How much their classes cost?
  • How much money do they have?

Can a student acquire a personal loan?

Students older than 18 can apply for a personal loan in the UK. But students often don't have many options. Even though each lender has its own set of qualifications, students could be seen as high-risk borrowers, especially if they don't have a job or have bad credit.

If a student doesn't have a steady way to make money, it might be hard for them to repay their loans on time. Similarly, if you don't have much credit history, it could mean that you don't know much about borrowing money, and there's no record of how you handle paying back loans.

Pros Of Student Loans

  • Student loans let you pay for school.
  • Student aid can make the difference between going to a school that is good enough for you and going to the school of your dreams.
  • Student loans can pay for more than just tuition, room, and board.
  • Paying off student loans may raise your credit score.

Cons Of Student Loans

  • Student debts may be expensive.
  • If you take out student loans, your debt will follow you into adulthood.
  • When it comes to other goals in life, paying off school debts means putting them on hold.
  • If you can't repay your student debts, your credit will suffer.

Alternatives To Student Loans

Some financial institutions offer student overdrafts and student credit cards as ways for students to borrow money that meets their specific needs. But because these facilities often have lending requirements, it's possible that people with bad credit won't be able to use them. Here are other alternatives for student loans:

1.     Student Overdrafts

Most student checking accounts have a pre-arranged, interest-free way to go overdrawn. Even though overdrafts for students can be different from one bank to the next, most of them give up to £3000.

You have to pay back the money in your student overdraft account by a specific date, either right before you finish your program or not long after. But it's important to remember that you may have to pay interest fees if you borrow more than your overdraft limit allows.

2.     Student Credit Cards

Some providers offer credit cards for students. These cards are meant to make it easier for you to borrow money and give you the chance to improve your credit score at the same time by making your payments on time. Student credit cards often have lesser limits. This is so that cardholders don't rack up too much debt.

Here are the statistics on UK’s student debts:

Almost £20 billion is lent to 1.5 million UK students yearly. Outstanding debts totalled £182 billion by March 2022. By the mid-2040s, the government expects outstanding debts to reach about £460 billion (in 202122 values).

The average debt for students who started their education in 2021/22 is £45,800 when they graduate. Starting in 2023/24, people under the restructured system should owe £43,400. 20% of full-time undergraduates starting in 2021/22 were projected to repay in full. After the 2022 revisions, they expect this to rise to 55% by 2023/24.

What to do if you're a student having trouble with money?

When you're a student, it can be hard to manage your money well, especially if this is the first time in your life that you've had to take care of your own money. But if you can't keep up, you have various options:

1. Scholarships and Bursaries: Some colleges in the UK offer scholarships and bursaries based on financial need to help pay for tuition.

These are one-time payments that don't need to be paid back. Some schools provide good students with scholarships and awards. It is in your best interest to find out about the different prizes you can win at your school and to talk to the administrative staff to learn more about how to apply.

2. Emergency Loans: If you are having a lot of trouble paying your bills and have tried all other ways to get money, some colleges may be able to give you a short-term loan with no interest and no need to pay it back.

Because the terms and conditions of university emergency loans or installment loans for bad credit from direct lenders can vary from one school to the next, it is important to do research on them before applying for one. You can also reach out to no guarantor loans as a student.Loans from direct lenders can benefit you, as they instantly give out loans to the borrowers.

The graph shows the outstanding debt of student loans in the UK:

Source: Statista

Conclusion

Student loans make college feasible. These have fixed interest rates, and most come with a six-month grace period after the borrower graduates or stops going to school.

They also have protections and benefits for the borrower, such as repayment plans based on income, deferment or forbearance, etc. If you refinance your student loans, you might be able to pay less each month, but this will depend on your specific situation.

However, many online lenders look at several factors to decide if you are eligible for a loan and what the terms of the loan will be. Some things to consider are your education, earning potential, credit score, etc.

Meta Description - Even with bad credit, you can get a student loan to pay for tuition and living costs. Here are some ways to access funding for your school.