While most law school graduates make about £29,000 more per year than people who do not attend school, they still are worried about paying back their student loans. Naturally, the amount of debt you amass is based on how much you end up borrowing. However, loan repayments are not based on the amount borrowed; they are based on your income.
For example, if you are taking a three-year LSAT course of study, you will probably need to pay back about £40,000 when all is said and done. However, this figure is not set in stone. It just gives you an idea of the future. You also have to factor in the interest you will incur. The interest that is accrued is dependent on the RPI or retail price index, including your financial circumstances. The RPI is the current measure of inflation.
The Financing Does Not Affect Your Credit
One detail to note is the fact that your student financing will not show up on your credit reference file. Therefore, taking out a loan will not adversely affect your credit. Again, what you pay back is determined by how much you earn. For example, suppose you leave university and are not working. If you are not working or earn less than the threshold of £25,000, you do not have to pay back the loan.
Repaying Your Student Debt
After you graduate from university, you will need to repay 9% of what you earn that is above the threshold. Therefore, it does not matter if your loan is £25,000 or twice that amount, payments are subject to what you earn.
Some Stipulations Worth Noting
Happily, if you are able to get a job making a good salary, you can pay a good deal of your debt back. If you still owe money for your student loans after 30 years, the amount will be written off. It does not matter if you did not work during the time or you made a salary below the threshold. You do not have to pay the loan amount back after that period.
Patience Can Be a Virtue
Naturally, you are taking a chance here with the time factor. After all, you have no guarantee that the rules will be the same 30 years from now. However, any changes made to the current system will probably affect newcomers rather than the students who already owe loans.
One way to keep your future debt reduced is by taking a part-time job. Doing so can not only enhance your CV, it can assist you in better meeting your obligations. Therefore, keep that in mind when applying for financing. Also, you do not have to wait for responses from your universities. You can apply for funding while you wait.
It is worth taking out a student loan as you are given some latitude about repayment. Even if you do not make a high salary, you can adjust your budget accordingly. Given the benefits of an education, taking out a loan is an expense you can afford, especially if you want to improve your chances for getting a job.