SUMMARY: Average student loan debts have reached £9,620 and nine out of every 10 students now borrows to finance their university education. But who gives a non-working student money to finance a student life?

Student loans and the price of an education

By Melinda Varley

The average student entering higher education will now leave

Although some figures show that graduates can expect higher than average earnings, students may not actually be in well-paid jobs for a number of years after graduating leaving. ( cheap mortgages ) Unfortunately for some, this premium in earnings may never even be enough to clear their accumulated personal debt.

The best way to avoid the struggle is to learn about and prepare yourself for each cost involved over the period of our course including the time it may take you to find a job afterwards.

Firstly, tuition fees - these pay for the actual course you want to take. Before 1999 the Government covered the entire cost. However now, a growing appetite for higher education forced the Government to change the system. This was also justified by claims that during the course ( mortgages ) of their working lives, a graduate could earn £400,000 more than a non-graduate. (mortgage deals)

However, not everyone has to pay tuition fees. If your parents combined earnings are under a certain threshold they will not have to pay. From the threshold upward, the contributions operate on a sliding scale.

Although, regardless of their earnings, the maximum any family has to pay amounts to around a quarter of the entire cost of the course each year. This is estimated to be around £4,000 and the Government will still pick up the bill for the remaining amount.

As soon as you are accepted into a course you should apply to your Local Education Authority (LEA) to find out what sort of financial help you can obtain.

Thinking of taking out a loan to fund your course? Most students will need to take out ( best mortgages ) one or more student loans to cover their day-to-day living. These are unsecured loans with an especially low interest rate that reflects the rate of inflation meaning you only pay back the exact amount you borrowed. (life insurance)

If you are going to take out a loan you should contact your LEA at the ( medical insurance ) same time you apply for support towards tuition fees. Your LEA will assess the amount of loan you are entitled to and invite you to request how much you want to apply for. You must then tell the Student Loans Company (SLC) of the amount agreed and it will pay the money into your account on the first day of term. Note also that you are eligible for more funds if you are studying in London.

You can apply for one loan for each year of your course and you do not have to start making repayments until the April (end of tax year) after you graduate. From then on, you will only start paying back the loan if you are earning above a certain threshold.

Then the amount you pay back each month will depend on how much you are earning. In the unlikely event that you never earn over the threshold, the loan will be cleared when you turn 65. (best mortgages)

Your home may be repossessed if you do not keep up your repayments on a mortgage or any debt secured on it. Loans may be secured on your home or other property. Think carefully before securing other debts against your home.