student loan debt
Ashley Corn October 6, 2022

They’re not scary. But they can impact your life in a way that your financial management can get wrecked. Well, the truth is a student loan debt is quite a common and a worrying issue in the UK and in the rest of the world too.

The trickiest part of these debts is that the students manage them. To be frank about students, we just have to choose to say "they're still young" (in a generalized sense). And young people do feel it difficult to tackle these issues.

According to Statista, the students from English Universities who are graduating will bear a debt of over 45 thousand pounds in 2021. Imagine the impact it would produce on student life.

Now that you know that we should be careful with it, I would like to ask you a simple thing.

Do you think you can manage these debts so easily?

The answer to that might lower your mood.

But, I am going to try to offer a solution to that as well.

Keep on reading…

Learn the Impacts of Student Loan Debt

Well, I am going to share a simple fact first. We are undergoing a huge living cost crisis in the UK. The Britishers have to suffer not just a high price, from products to utility, but also a steady and appalling job loss.

Students are all under this influence. Such a problem influences them greatly and we need more support for them. Well, as a result of these natural problems, the most natural outcome is student loan debt.

To tell you the truth, a debt of this kind defines any student debt from loans he or she had taken out at the time of graduating; before it or after it. Yes, students take loans for a variety of causes.

But, primarily the sanctioning of the loans happen on the grounds of educational expenses. And academic costs in the UK are pretty high these days.

However, let’s come to the fact. You can manage loans. If the situation isn't in your favor, then you may escape some loan options. For example, bankruptcy can get off the burden of some loans from your back.

But an issue such as that won't stop student loan debts. You need to repay it and only then, you can make a good outcome happen. There is an offbeat but highly effective way though and that is debt consolidation.

You might avoid draining your savings and choose to take out an instant loan for the students (who are unemployed) in order to pay your existing debt.

These instant loans are what you call personal/ unsecured loans, which you might be able to repay using your next employment. You can also choose student benefits and allowances to pay back lenders.

Speaking of lenders, make some research. You will see that most of these loans are coming from direct lending practices. As far as my knowledge says, direct lending comes with a variety of interest rates.

At least, it might buy you some time to repay the previous loan and then come to a solution to repay this loan. Well, we can discuss that a little later.

Now, let us know what complications a debt of this kind can cause in a student’s life.

1. It Is very Problematic to Own or Rent a Home

Now I am not saying that a student has to own a home right now. 

But some students do need to own it at some point in their lives. For example, think of an art graduate who desperately needs an art studio of his or her own.

Other students – the majority of them – prefer going to a rental home. Many share rooms too.

But this is one of the most important aspects of their lives. In this phase, financial services and privileges must be ‘more available’ to them.

But that isn’t the case when a student loan debt is involved.

It is quite complex and lengthy to get a secured loan or a mortgage with flexible interest rates. If you plan on buying a home, you need an affordable mortgage. A student loan debt is already a factor that affects your borrowing.

The same problem happens when you look for a tenant loan in order to make the down payment to your landlord or landlady.

A good idea to tackle this problem is to look for ways to get over the debt at first. As mentioned earlier, taking out a loan to consolidate this debt is going to be a good idea to get a mortgage or tenant loan in more favorable terms.

2. Student Loan Debt Negates Net Worth

It is surely an important factor in a student’s life when Net Worth comes into play.

A student, at the beginning of his or her career, can earn or be given a lot of money. Even if not 'a lot', the pupil will have some savings and amounts as a whole that only belong to him.

Student loan debt can seriously screw up this entire balance that the student took years to build.

It affects not only education but almost every part of a student's life, including wellbeing.

It impacts the worth a student has. And it seriously affects the quality of life of the student lives. Lastly, there's an unavoidable negative effect on studies.

3. It Influences Your Career because You Rush into Jobs

Just because jobs are available more than they have been 3 decades ago doesn’t mean you have to get one immediately.

But the student loan debts are forcing students to go for jobs.

That is not always the right thing to do. Jobs are great but a student must invest him or herself in them at the right time. It is because a job life is permanent.

When faced with problems from this type of debt, the students mostly tend to look for easy and low paying (no offence) jobs. Yes, these jobs come to you without hindrances but they may not always be good for your career.

If you are a student and you are working at a job such as this, then you might not get professional exposure. I would like to add that you are not even going to get the personal space to think about your career,

But yes, people often take these jobs up just to pay the instalment fees of the debt that troubles them. But if the loan amount is high and the term is long, then it might take years for you to repay the full amount.

A loan for repaying another one might sound like not something that you can manage. But a new loan can help you gain an upper hand over the previous loan debt because you get to choose new repayment terms and access affordable interest rates.

Yes, you also need to have a good job in order to secure the repayment. But that might be easy following these ways mentioned below:

  • You can compare different loan options and find a deal that's more affordable than the one you are suffering. Use an online tool or an app to find better deals.
  • Taking out a debt consolidation loan can manage multiple of these student debts (if any) and bring all your diversified interest rates and repayment into one loan term. Mostly, this has proven itself as a cheaper option.
  • If you have a lower amount of student loan debt, consider taking out a payday loans for the unemployed. Benefits or the salary of your next job can be used to repay the loan. If you choose salary, then you can repay the loan using the whole or a large part of it on your next payday. It helps you get rid of the debt in a month or two. In other cases, you might get a payday loan for shorter terms such as a few months or a year as well.

If there is a debt, solve it in the smartest way possible. It doesn’t mean rushing the process.

To Conclude

Yes, debts of these kinds can make student life quite problematic.

If you are already in student loan debt, I would always recommend not stressing yourself. Consider this as a phase of your life contributing to the learning curve.

However, if you’re not suffering anything like this, then my advice for you is to have clarity.

The more focused and confident you are, the better the utilization of the money happens.

So, be it studying or a life decision, please don’t rush it.