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Wracking up student debt..

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Okay folksies, I'd like to get an idea of how many of us are at university/completed university and are leaving with huge amounts of debt? How seriously do we take the repayments, and are yours interest-bound?

 

I feel as though I was completely misinformed as- when taking out a loan for my undergrad- I was told that it was completely not interest-bearing, instead they said something about it being linked to the rate of inflation etc. Once I had graduated and all the warm fuzzy feeling had worn off, I recieved a statement summary from the Student Loans Company with a listing of all the loans they had ever given me and all the interest they are going to be charging for it. Was one of the most chilling moments of my life (no exaggeration) because this was going to be £10,000+ of loans PLUS interest which I would have to begin paying off- though I hadn't even secured a job and the market was crazy competitive.

 

So for my Masters, my mum lent me £4000 which I still have to pay back to her, but combined- this is a serious amount of money. The burden of it is weighing heavier on me day by day.

 

Did anybody manage to get through their under/post-grad studies without wracking up any debt?

What loan repayment pattern are you on?

Have you even started or thought about how to shift it?

 

Sharing is caring, please tell!

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Guest Sister Who

Right now Im in debt by £8000 :( by the time I graduate inshAllah Im gonna be in £24,000.

How am I going to repay it all? I have no idea, does this bother me? HELL YEAH! But right now Im trying not to think about it, because I honestly have no other way out.

 

What bugs me is that when I graduate i'll have to do an extra year at uni which is gonna cost me more, but Im trying to think of a way out, I was going to do another course which means i can work straight away but I need 4grand for that, so I can't do that. I actually want to clear my debt ASAP after I graduate that gives me the freedom to do other stuff but honestly.. 24k? its ridiculous and don't think its gonna happen.

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It's scary thinking about all that debt. :( I heard/read somewhere that University fees are going up too. :(

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Guest Sister Who

Zimarina, you're lucky you ONLY have 10k, thats nothing compared to what the American kids have got/will have. :ph34r:

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Try finding all the conditions. I remember some one telling me there are ways out if you are living abroad or unemployed.

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Guest Sister Who

When you guys go on about interest how much interest is it? And I was told the inflation thing too :ph34r:

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Guest iby

Well all i have to cover is my travel costs and needs. Cos ima be staying at home and my mums going to pay for my fees. (if i decide to go uni)

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Guest iby

Okay folksies, I'd like to get an idea of how many of us are at university/completed university and are leaving with huge amounts of debt? How seriously do we take the repayments, and are yours interest-bound?

 

I feel as though I was completely misinformed as- when taking out a loan for my undergrad- I was told that it was completely not interest-bearing, instead they said something about it being linked to the rate of inflation etc. Once I had graduated and all the warm fuzzy feeling had worn off, I recieved a statement summary from the Student Loans Company with a listing of all the loans they had ever given me and all the interest they are going to be charging for it. Was one of the most chilling moments of my life (no exaggeration) because this was going to be £10,000+ of loans PLUS interest which I would have to begin paying off- though I hadn't even secured a job and the market was crazy competitive.

 

So for my Masters, my mum lent me £4000 which I still have to pay back to her, but combined- this is a serious amount of money. The burden of it is weighing heavier on me day by day.

 

Did anybody manage to get through their under/post-grad studies without wracking up any debt?

What loan repayment pattern are you on?

Have you even started or thought about how to shift it?

 

Sharing is caring, please tell!

 

Also isnt there a way like to take a specific amount out towards the loan? when you start working.

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I'm trying to ignore it all right now :ph34r:

 

I'm just entering University and will be wracking up A LOTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT of debt. My school is legit crazily expensive.

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I have heard that the riba on a student loan (and yes, let's not pretend it isn't riba) does not apply when earning less than £15,000 a year, the minimum threshold needed for SLC to take out 9% of your wage. If this is true, then I will purposefully get a lower earning job and slug it out, paying it out. Also, I wonder if fixed repayments incur interest? Paying it back in bulk doesn't, that's for sure.

 

I was a bellend that I applied for everything on the first year. So right now, I owe them about £9425 approx.

 

£6200 for London rate Maintenance Loan, £1400 of which is replaced for a means-tested grant.

 

£3225 tuition fee loan, £2906 Maintenance non-repayable Grant, £1000 non-repayable bursary from the university. Sounds good? Well, £4200 went off for accomodation, and I only spent half the Maintenance Loan this way. From budgeting, I spent about £700 - 800 all year on food, books, clothing and travel. Not bad for a year, huh? But could do better, I suppose.

 

The tuition fee loan doesn't go into your bank account but straight to the uni. I've got enough money to live for the next academic year, but subhan'Allah, I think I could've made more effort in being less NAIVE about all this!

 

So in order to reduce the amount of debt I have, I'm only getting the full grant and bursary. £3906 altogether is enough for rent costs and since I started the term with £2000 of my own cash, I think I'm doing fine. Avoid the £6200 loans for another 3 years (since I want to do an extra year PGCE after I graduate insha'Allah) and I save myself of £18,600, alhamdulillah.

 

If I carry out with this plan, I'll owe them about £19,000 approx. If only I didn't take out the first year loan (which had no interest by the way, this year's academic year in terms of fees had no interest contigency due to the recession), then I'd only owe them £13,000 approx, which is a darn sight better than the average student debt about.

 

Y'know, if we knew of all this before going to uni, WOULD we as Muslims want to go to university?

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Alhamdulillah, alhamdulillah, alhamudillah I got through uni without any sort of student loan. Well I did take out £3,000 in my final year but I gave all that to my sister so I'm not worrying about that too much.

 

Alhamdulillah (insha'llah) I can get through my post grad studies without a loan either.

 

EDIT: I'm glad I went to uni before top up fees came in

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Alhamdulillah, undergrad was free for me. Professional school will be an entirely different story. Without putting any numbers out there, my debt will be at least 10X greater than anything mentioned thus far. Goal is to invest in property which could be sold down the road, to live a frugal lifestyle at first, to even relocate to an area with lower cost of living, and to insha'Allah land a lucrative position somewhere. A contributing spouse would also help.

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Wow, your tuition sounds scary.

 

Alhamdullilah I didn't wrack up any debt. My dad helped me out at the start and from then on in, I payed it all myself. I'm not even loaded or anything, I just worked a lot in the summer at random jobs and made enough money to pay off the tuition for the upcoming year. I also became more frugal when buying those $200 textbooks. After some time I realized they could be a useless purchase so I usually bought the necessary stuff a week after classes once I found the groove.

 

I also lived at home as university was 20 mins away so that helped too!

 

Although booking wedding halls? I'm a bit scared with that one. :(

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have you/can you in the UK system consolidate your loans?

 

I'm almost done with paying back with large chunk of mine as well (close to 10K US dollars).

 

some tricks for the youngins on the forum:

 

1) don't get a credit card in college. I don't care what anyone tells you, burn it/tear it up/get rid of it. don't have the money for that shirt? too bad. don't get wrapped up over stuff you'll forget about in 3 days.

 

2) get a job while in school/part time.

 

3) the more you start paying off the loans early on, the better for you in the long run.

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osap didn't give me any money last year. after filling everything out they said i get $0. but this year, because my brother is starting university, i'll be getting like $2000. what a great help. <_<

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