Thursday, February 3, 2011

Guarantor Of Student Loans

For many students finance their studies, the most difficult part of the university experience as a whole and one that many students struggle with throughout their academic life.

Although it appears that there were actually enrolled in a university place is the hardest part, many students do not realize how much it would actually be to finance their studies and students realize that their funding is cut, subsidies are eliminated or in the case of the United Kingdom, university tuition fees are increased to such an extent that it triggered mass riots in London.



So the question is, will guarantee a loan to help students pay for tuition?

Well, before I answer that we must take a look at what the proposed new British government this means in real terms.

The government has submitted a proposal (recently ratified), which allows universities to charge up to £ 9,000 for tuition per year. This represents an increase of 300%, which is an impressive figure that part of the fence you are. Now, when tuition fees are currently £ 3,000, which is a university that wants to charge tuition fees of over £ 6000 (double the current fee!) Is to provide scholarships and assistance programs to help disadvantaged students, and the poor conditions in which there is no hope of paying these taxes, but this figure is still almost double what they should pay now.

Student Loans from £ 15 000 will always be available and this will increase to £ 21 000 until the students have to repay their debts. If the student debt continues after 30 years it will be removed. Any student who wishes to start repaying their fees will be subject to a 5% levy to ensure higher incomes are able to "take advantage" of the system compared to those students who can not get a good paying job and will be unable to repay the loan early.

So what does this mean?

It simply means that students can not pay tuition grant them and many students find paid work and / or an additional loan to cover these costs have increased. However, the problem is that many students will not be able to find a job that fits around your school to try to get a loan instead of giving much to complete, but still faced a problem. Lenders will not lend money to people who do not work or only work part time, of course, the students fall into this category.

But that's not all.

Most students have already acquired a huge debt or have had a bad credit record like late payment of credit cards or runs a huge (unauthorized?) Coating. Of course not all students fall into this category, but many of them want and that means it is almost impossible for one of them to get approved for a loan, regardless of the size of the loan.

Well it was until the introduction of guaranteed loans.

Although a relatively recent innovation in the student loan guarantor industry over many years in one form or another, especially in the mortgage market, and that they are designed specifically for the loan students because they provide students with a bad credit history to borrow up to £ 5000 without worrying about the state of their credit profile or history.

These types of loans are ideal for students looking to finance their studies, but is concerned that denied funding if it was the traditional route to talk to your bank.

This type of loan also fit the model of risk that lenders are now adopting, because the loan is actually assessed on the guarantor (the person guaranteeing the loan) and not the actual applicant. In fact, the best way to understand how it works is ready to know that in all cases, the lender will almost ignore the loan applicant (the student in this case) and the base of all their lending decisions on the guarantor, after all, they will be the person that lenders turn to the full repayment of the loan if the applicant fails to make their repayments.

It is also important to note that the guarantor of a loan is not considered a replacement for a college scholarship is just another way for a student to finance his studies.

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