New student finance package has one major advantage

Tue, 23 Aug 2011

There is a big advantage to the new system of student finance being offered by the government, it has been claimed.

According to loanmoney.com, the new student loan initiative has one "big plus point" for some of those involved, but it tempered this joyous news with a word of warning.

Head of consumer finance at the site Ed Bowser said: "A big plus point for the government's new loan system is that many students won't have to pay back all off their loan.

"It's only high earners who will pay back the full loan before debts are written off 30 years after the student leaves university."

However, the expert added a work of caution, which might tempt those concerned about student finance to pay back as much as they can early on.

He noted that under the new scheme, which comes into place next year, former students will be asked to pay at rates that are higher than inflation.

Mr Bowser added that people should not assume that student finance will remain as cheap as it is now for the duration of the loan.
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