Follow the Erasmus’ adventure in Southampton of the students from the IEMN-IAE, Nantes, France. Every other week, “Breaking it down” tries to make things as clear as possible about a tricky UK topic!
Summary Episode:
Can you afford university? What kind of loan can you apply for in the UK? Breaking the student loans down!
<3 This is the last Episode of “Breaking It Down”, and of our stay in Southampton. Thank you os much for watching, hope you liked it, take care! <3
Music:
Sébastien Léger – L’oreiller (Joachim Pastor remix)
The purpose of this video is to be used in online in scholarly and non-profit publications and blogs.
Hope you’re going to like it ! Thank you for watching and please do not hesitate to comment !
Script:
I have recently figured out that English educational system is in many ways distinct from the french one.
Indeed as the difference could be made in France between Public Universities and Business schools, the United Kingdom has two type of Universities : Public and Private ones. Public universities are usually funded by the state but, and here is the biggest distinction with France, the tuition cost is pretty comparable to private university tuition.
In September two thousand and twelve public universities tuition fees were tripled, raising up to nine thousands pounds a year.
About ninety six thousands pounds, or twenty four thousands a year over 4 years, is a reasonable estimate for a UK university degree, including tuition fees, and living cost.
As money shouldn’t be a barrier to going into University the government is providing low-interest repayable student loans.
Student Finance England is a place where British students can basically apply for two types of loans: the tuition fee loan and the maintenance loan.
– First, The tuition fee loan. It is a virtual loan which goes straight to the chosen university on the behalf of the student. It covers all aspects of the course that the university delivers up to (six thousands pounds) for private University and (nine thousands pounds) for regular Uni as a form of subsidiary
– And there’s The maintenance loan. This comes straight to the student and is to help him with living cost. The amount of maintenance loan that a student can get, depends on where they’re gonna live and study.
The loan incurs interests from the moment it’s taken out, but students don’t have to repay their loan until they finish or left their course and their income is over twenty one thousands pounds.
Repayment will be based on the student’s future earnings rather than the total amount borrowed. This amount isn’t affected by the interest, the student will only need to pay back 9% of his income over £21,000.
So, say you’re earning twenty two thousands pounds a year, then you will pay back 9% of your income above twenty one thousands. Or, to put it another way, £7.50 a month.
But depending on what you earn, you could be paying more money back for longer. Perhaps most of your working life… just as a tax! However, after 30 years, your debt will be written off.
In addition, this debt isn’t considered in credit rating, which helps when applying for Mortgages or credit card.
We could finally say that This student loan system is definitely a way to make students contribute to the cost of University. In another hand, it has been the subject of heated debates.
Indeed among other reasons, variable interest rate of these loans is said to be too opaque, and tuition fees are higher than ever.
