Common misconception on UK student loans

Recent graduates are facing a huge burden of the student loan debt. Repaying the student loan is not easy after graduation according to the UK student debt statistics. Most of the graduates are not paid enough after school, and this means that repaying student debt becomes a challenge. Repaying your student loan is not an option, and this means that you have to look for a way to pay it. Traditionally, there is the student loan consolidation that allows you lower monthly payments. However, there still other options out there to help you repay your student loan.

Student loans myths

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Of course, a student loan is still a loan, and this means that you have to repay it with some interest. While this might be true, the maximum that you pay in interest is now is three per cent. This rate is likely to change due to inflation and other factors. The truth is a student loan is the cheapest loan that you will ever get in your life. There is no bank that can lend you in such a low interest and flexible payment terms.

Student loans and credit score

A student loan has no relationship with your credit score. It doesn’t mean that simply because you took a student loan your credit score will be affected. When applying for a mortgage or any other form of financing, the financial institution will never know if you were a beneficiary of the student loans program.

Moving abroad means no repayment

Many students just assume that when they graduate from college, they will move away from the country and leave the student loan behind. This is not true because moving to another country doesn’t mean that the loan will disappear. If you want to move to another country, you need to contact your student loan company and let them know. This will avoid a case where the student loan company finds you and makes you pay.

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Student loan debt is lifetime

You can pay the student loan in a flexible manner for a long period. However, this doesn’t mean that you have to live with the student loan for the rest of your life. You can look for different repayment methods to make sure that you deal with the issue as fast as possible.