Posted: Mon Jul 02, 2007 9:49 am
Students 'must accept debt'
Students have been warned that racking up debts at university is inevitable and that they must "accept it" as a fait accompli.
According to the Consumer Credit Counselling Service (CCCS), unless a student's parents are able to provide them with absolute financial support during their time in higher education, it is a given that debt will be accrued.
However, the CCCS's spokesperson, Frances Walker, believes that students will still be primed to reap the rewards in later life, and so should not get too despondent - although she did suggest that measures could be taken to ensure that debt is kept to a minimum.
"[Students] probably have to accept that you are going to get into debt, and not worry about it. #133;I'm not suggesting you go out and run up hundreds of [pounds] of debt or anything, but you have to accept that going to university nowadays does involve debt," Ms Walker commented.
"I don't think [loans] are advantageous, but I think you just have to accept that you're going to have to do it #150; unless you happen to be in the position which very few are, where your parents are going to support you"
"The whole thing is premised on the idea that you have a greater earning capacity when you leave university."
While Ms Walker advocated the use of student loans as the best and most cost effective way of taking on debt, she also advised that there were other cheap deals to be had.
However, these should only be considered once the full student loan entitlement had been taken up, she said.
For instance, a number of banks offer "generous" deals including interest free overdrafts for students, Ms Walker furthered.
Meanwhile, the use of a price comparison website is championed to ensure the best products are chosen.
"The best thing is obviously to avoid expensive forms of credit, like credit cards#133;really look into the best student deals around#133;There are plenty of options out there," Ms Walker concluded.
Source: fool.co.uk
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Students have been warned that racking up debts at university is inevitable and that they must "accept it" as a fait accompli.
According to the Consumer Credit Counselling Service (CCCS), unless a student's parents are able to provide them with absolute financial support during their time in higher education, it is a given that debt will be accrued.
However, the CCCS's spokesperson, Frances Walker, believes that students will still be primed to reap the rewards in later life, and so should not get too despondent - although she did suggest that measures could be taken to ensure that debt is kept to a minimum.
"[Students] probably have to accept that you are going to get into debt, and not worry about it. #133;I'm not suggesting you go out and run up hundreds of [pounds] of debt or anything, but you have to accept that going to university nowadays does involve debt," Ms Walker commented.
"I don't think [loans] are advantageous, but I think you just have to accept that you're going to have to do it #150; unless you happen to be in the position which very few are, where your parents are going to support you"
"The whole thing is premised on the idea that you have a greater earning capacity when you leave university."
While Ms Walker advocated the use of student loans as the best and most cost effective way of taking on debt, she also advised that there were other cheap deals to be had.
However, these should only be considered once the full student loan entitlement had been taken up, she said.
For instance, a number of banks offer "generous" deals including interest free overdrafts for students, Ms Walker furthered.
Meanwhile, the use of a price comparison website is championed to ensure the best products are chosen.
"The best thing is obviously to avoid expensive forms of credit, like credit cards#133;really look into the best student deals around#133;There are plenty of options out there," Ms Walker concluded.
Source: fool.co.uk
Please post any news stories about IVAs here:
http://www.iva.co.uk/forum/default.asp?CAT_ID=5
See my Blog:
http://ivanews.blogs.iva.co.uk