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English students face money worries.

October 11, 2013

lifestyle

Scotland and England have a very different system when it comes to student finance. While we both get student loans and bursaries, Scottish students get their tuition fees paid for them, while English students have to pay for them themselves. Not only were tuition fees scraped for Scottish students, but they also got rid of the ‘graduate endowment scheme’, meaning that all you had to pay back was your student loan, if you got one. I have to say that I am unsure just how I would have afforded university if it wasn’t for free tuition, so I definitely think it’s a good thing, although I feel some English student may find it unfair.

Well, it looks like things are maybe about to get worse for English university students when it comes to money. The government have revealed that they are considering asking graduates to pay the market rate of interest on their student loans, with only the poorest graduates being let off.

Currently if you have a student loan and tuition fees to pay back, you only pay a low rate of interest, which is linked to the base rate. You also have to be earning a certain amount before the government starts taking money off you, but they are thinking of raising that, so at least you would have to be earning around £15,000 a year before you would have to start paying them back.

It is also worth pointing out that the current rate of interest for English students is 1.5%, for anyone who took out a loan after 1998, but that was only introduced in September, as no interest was charged before that. So not only have English students had to put up with interest being introduced, they may now have to deal paying a very high rate of interest.

Bad news for Scottish students and graduates too, as there are rumours going about that the Scottish government are thinking of charging Scottish student tuition fees as well. I really hope I’m off the hook, considering I graduated two years ago, but you never know. Student loans always have a way of catching up with you. Just ask Howard Moon from The Mighty Boosh.

Image via SayEducate

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