4 Reasons Why a Secured Education Loan is the Perfect Consolidation Tool for Your College Student Loan

Being a student is an expensive business.

As well as tuition fees and accommodation, the living costs as a student have risen over recent years. Recent figures published by the BBC showed that students in England had an average debt of £5,293 per year, while those in Wales netted an average of £6,411. This means that many students on longer courses could end up with debts as high as £25,000 at the end of their course.

And, recent announcements that university tuition fees are set to rise further is only likely to make student debt a growing issue.

If you are a graduate, you may well be struggling to deal with your student debts. School loans, university loans, tuition fees and credit cards could be weighing you down as you try and repay your student debt. So, why not consider a secured education loan to simplify your finances?

University Loans

The student loan system in the UK was established for the 1990/91 academic year. It was designed to assist students with the cost of attending university and was designed to replace the previous ‘grants’ system.

Under current rules, students can claim university loans to cover the cost of tuition fees, plus an additional amount for living costs. There are also grants for the poorest students.

Loans begin to be repaid after a student graduates and is earning more than £15,000.

With tuition fees set to rise over the next few years, the loans system will become ever increasingly important as student debt levels rise.

Secured Education Loans Are Good for the Consolidation of University Loans

A secured education loan allows you to raise a sum of money based on the available equity in your home. You can then use this money for the consolidation your school loans or education loans, as you wish. As the name suggests, a secured education loan is secured against your house. You can generally choose the amount you wish to borrow and the term of the loan.

The exact amount you can borrow is based on your income and expenditure, the value of your home, the equity you have and your credit rating.

Secured home owner loans are different from ‘unsecured loans’ as the lender takes a legal ‘charge’ over your home. This means that you have to keep up repayments on your secured education loan owner loan otherwise your house is at risk.

Helping Your Son or Daughter Through School or University

If you have equity in your property you may be able to use this to help your son or daughter through school or university. If you want to finance their school fees or tuition costs, you can take out a secured education loan to raise the funds needed.

Helping your son or daughter avoid university loans or school loans mean that they will graduate with a clean slate, avoiding the record levels of debt being experienced by students across the UK.

Whatever debts you accrued whilst you were a student, it is easy to reduce your payments and simplify your financial arrangements with a secured education loan. Don’t let student debt weigh you down when consolidation of these borrowings is easy and simple with a homeowner loan.

To use your home to raise money at a competitive APR, please fill this homeowner loan form.