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The true cost of university

Are you interested in going to University? If so, ensure to read on… 

So, whether you are in the process of getting yourself prepared for your GCSE’s, or getting ready for Sixth Form/ College, I know many of you will now be increasingly thinking about University. This of course makes sense, because wherever you maybe in your current academic journey, this is likely to be the biggest decision that you have had to make in your life so far. Therefore, by reading the rest of this Blog, I am hoping this may make any future decisions regarding University to be a bit easier for you. 

Yes, the cost of University is important to consider, but… 

So, as a teacher of Financial Studies with the London Institute of Banking and Finance, preserving the personal finances of students (in addition to their parents/guardians) holds huge relevance and importance to me. And, this is no different when it comes to properly understanding how finance works when it comes to applying, getting to, and then graduating from University.  

Let us not forget the long-term experiences and opportunities Universities can provide for you…  

As a person who gained so much from attending University, for me it is important that students (and their parents/guardians) understand the true costs of the opportunity that is University. After all, despite the perceived costs (and let me get back to this a bit later), it is important that we do not forget about the many opportunities, both seen/tangible and unseen/intangible that University could offer you in the future. Yes, there are the expected greater job opportunities and all the associated career benefits that can come with this. However, there are also the early long term networking opportunities through meeting people from the UK and other parts of the world that provide experiences not thought possible before going to University. 

Consider the cost of the University experience as an added tax rather than a loan repayment… 

Another huge advocate of the long-term benefits of University is the UK’s favourite Money specialist Martin Lewis. He is also someone that constantly bangs the drum regarding Students Loans and the funding of University, and is very good at highlighting how the eventual payment of the costs of University acts more as an added Tax than as a loan that you have to pay off (for more information on this please watch the link below). 

The costs of University are more affordable than you may initially think, it really is worth checking out the following.. 

Please do check out the links below for more information, however, before you do, please find a summary of the key points Martin Lewis successfully presents to the audience of students in the video… The points raised are up to date as of 2022; however, the YouTube Clip was filmed in 2019, so some of the quoted figures would have since been amended… 

  • The maximum maintenance loan is now £12,667 
  • Graduates repay 9% of everything they earn over £27,295 
  • The rate of inflation is currently 9% 
  • If you earn more than £49,130, you pay RPI + 3% 
  • The interest is set to increase in September 2022 but will be capped at 7.3% 

For more information, please do click the link underneath 

https://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes/

So, in conclusion… 

I am not suggesting that going University should not be seriously considered, because it should. However, if you are serious about wanting to have a job/career that does require a degree/ post graduate degree, then you should not allow the cost of doing this put you off, because the cost is not as mountainous as it may initially appear. So, with this in mind, and hoping that you’ve had the chance to watch/listen to the YouTube Presentation from Martin Lewis, then here are again some last factors I would like to leave you with as you look to succeed in your respective academic years…  

  • You only begin to repay your undergraduate student loan when you’re earning above £2,274 a month (equivalent to £27,295/year). 
  • You stop owing either when you’ve cleared the debt, or when 30 years (from the April after graduation) have passed, whichever comes first.  
  • On average 17 out of 100 of postgraduates – 17% will end up paying the full loan(s) off. The other 83% may end up paying a bit of what may be owed, however this group never pay the full amount. 

If you have this far into the blog, I do hope you’ve clicked the link to Martin Lewis, because for those students seriously considering University there is so much to be gained. It is a link/ blog that I think will allow University and your future aspirations to be so much more achievable. 

Now go and concentrate on ensuring that you get the University place your undoubted talent deserves. Good luck!  

Darren Collins 

Instagram: www.instagram.com/mrcollinsfinance 
Twitter: https://twitter.com/mrcollinsfinance
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