As well as the academic challenges which students face at University, undergraduates also have to face the prospect of accumulating debts of up to £53,000, according to the Push Guide.
And while most students are happy to survive on a diet of economy brand foods and occasional handouts from the bank of mum and dad, the majority of undergraduates couldn’t afford their student living costs without the help of student loans.
Paying back the Students Loans Company is often done begrudgingly, as we see our pay slips automatically docked every month as we hit the £15,000 mark, but some graduates use savings and varying forms of financial assistance to clear their debts at the earliest opportunity.
The latter group will be happy to hear that the Liberal Democrat scheme to charge 5% for the early payback of student loans is set to be scrapped by Prime Minister David Cameron.
The party had initially introduced the 5% on excess payments to try to curb higher-earning students evading the interest charges on 30-year repayment plans.
Students will also continue to draw on students loans to meet their living costs and annual tuition fees that may climb as high as £9,000. Undergraduates beginning their course of study in September 2012 will only have to repay loans when their salaries reach a figure higher than £21,000, and will see any outstanding balances after 30 years cleared.
To appease the Liberal Democrats, Cameron has appointed Professor Les Ebdon as Head of the Office for Fair Access. Edbon’s appointment has not been met favourably by the Conservatives as they question his radical views such as providing a more diverse intake at highly academic universities. However, some still see his appointment as a positive move:
"The Lib Dems were very keen to appoint Ebdon, and we felt very strongly about penalties for early repayment of loans. This is hopefully good news for tens of thousands of families, as well as many Conservative MPs who had raised concerns about the penalties," a Downing Street Source told the Telegraph.
What do you think about this news? Is obtaining a graduate position more important than concerning yourself with accumulated debt?