Should student loans be paid in monthly installments, like a wage?
Interesting opinion piece in today's Telegraph about this: http://www.telegraph.co.uk/education/universityeducation/student-finance/9881189/Time-to-change-the-way-student-loans-are-paid.html
The author suggests that monthly installments would act as a debt 'safety net' and would help students avoid the temptation of spending too much at once.
What do you think?
The author suggests that monthly installments would act as a debt 'safety net' and would help students avoid the temptation of spending too much at once.
What do you think?
Original post by Zomo
Interesting opinion piece in today's Telegraph about this: http://www.telegraph.co.uk/education/universityeducation/student-finance/9881189/Time-to-change-the-way-student-loans-are-paid.html
The author suggests that monthly installments would act as a debt 'safety net' and would help students avoid the temptation of spending too much at once.
What do you think?
The author suggests that monthly installments would act as a debt 'safety net' and would help students avoid the temptation of spending too much at once.
What do you think?
To be honest, I prefer to get three lump sums. This enables me to pay for things like car insurance in one lump sum (saving me £100s) whereas when I used to work part time, it had to be paid monthly which was more expensive. I can pay for more expensive things upfront when something breaks rather than waiting for my next "pay day", so long as I spend less the following weeks. I have been able to manage my budget fine and am not in debt. I think it is up to students to learn to manage money and I am unsure why some students decide to spend all their money on top of taking out multiple credit cards! Student debt doesn't happen overnight - it is cumulative and action needs to be taken before you reach £0 half way through the term! All you need to do some basic month to work out how much cash you have to limit to yourself each week. I have heard of some students giving their parents all their SLC money, who then agree to pay them weekly if you are unable to budget if this is something you can't manage yourself.
No, because not all students are morons when it comes to money.
Maybe it would be good if people could have that option if they are morons when it comes to money, or their parents think they are. It shouldn't be mandatory. They would have to be gven the option to pay accomodaation rents in installments, too, like real rents. I guess that could make things complicated for the accomodation services at universities.
Maybe it would be good if people could have that option if they are morons when it comes to money, or their parents think they are. It shouldn't be mandatory. They would have to be gven the option to pay accomodaation rents in installments, too, like real rents. I guess that could make things complicated for the accomodation services at universities.
(edited 11 years ago)
Original post by Zomo
Interesting opinion piece in today's Telegraph about this: http://www.telegraph.co.uk/education/universityeducation/student-finance/9881189/Time-to-change-the-way-student-loans-are-paid.html
The author suggests that monthly installments would act as a debt 'safety net' and would help students avoid the temptation of spending too much at once.
What do you think?
The author suggests that monthly installments would act as a debt 'safety net' and would help students avoid the temptation of spending too much at once.
What do you think?
Perhaps not having that safety net helps students learn not to spend all their money, and to organise themselves? As for the ones who don't learn from their mistakes.... well, they deserve what they get
Students need to learn to budget, plus I pay my rent termly.
I say yes purely because my local council seems incapable of understanding that students get paid every 3 months rather than every month so they keep putting me in rent arreas and threatening me. However the big lump sums are cool once in a lifetime experiences.
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