Taking Out a Loan
There is light at the end of the tunnel if you feel you need an extra financial lifeline. Student loans are an additional source of income that can get you through college life. But don’t get too carried away; as tempting as they may seem, it’s important to stay sensible. If you do need to borrow, make sure you think it through carefully - map out how much you need, what you need it for and what you can comfortably afford.
Then work out exactly how much you can afford to repay each month and choose an interest rate that suits your circumstances:
- Fixed rates will ensure that you pay off the same amount each month
- Variable rates will go up and down, but they will allow you to pay your loan off early as you can pay off lump sums as you wish
If you have an overdraft facility, ensure you know your limit and stay within this to avoid any unwanted overlimit charges.
And remember, if you have any difficulty paying back your loan then talk to a student adviser as early as possible. They are there to help work out a way for you to manage payments that you can afford.