Parents Throw Away Thousands of Pounds to Save Students from Student Loan Debt

Recent UCAS figures confirm an 8% slump in applications from the UK compared to last year and already many are concluding that it comes as a result of the rising tuition fees. Many students and parents alike are confused about the new tuition fees process and as a result it seems many parents could be throwing away thousands of pounds to clear their child’s debt, Student Money Saver has revealed.

More Information

The student tuition fees and student loan process which is expected to come into place for the academic year 2012-2013 is a constant worry for parents and a news topic which has reared its ugly head again and again in 2011. Many parents are borrowing or saving money in an attempt to pay for their child's tuition fees and leave their child free of debt. Student Money Saver, however, can reveal that this could result in parents throwing away thousands of pounds worth of hard earned cash.

Many parents seem to forget that students will not be paying back their loan and maintenance grant until after graduation and when they are in a full time job with earnings over £21,000. Only 9% will be paid off earnings meaning that a graduate with a £22,000 a year job will pay back just £90 in year one. Perhaps the most surprising news is that after 30 years, the unpaid debt will be completely written off so parents could lose thousands of pounds which could inevitably disappear after time.

For students or parents unaware of the tuition fees and student loan process which will come into place in 2012-2013, visit the Student Money Saver site where an abundance of help and information can be found on money saving and student finance.

Company RSS Feed

5th January 2012