With university fees at their most expensive, getting a student loan means more debt. Prospective students are now required to consider not only which course they take, but also the lifelong effect on their finances.
For some students, parents or employment provide enough resources to adequately fund a university place. For those students with no means to pay directly for their courses, a student finance toward tuition fees is often the only option open to them. With university course costing around 9K per year, this means that the average degree student could be 27K or more in debt before they even consider postgraduate education. Maintenance loans which help to pay for food and accommodation are not included in this figure and often mean additional borrowing.
Even though most student loans are not due to be paid back until the student earns 21k per annum, this debt enough to discourage many potential students, but some recognise the unique opportunity that a university degree can give. Many large companies such as Microsoft and Google, operate a graduate training programme which is open only to those with a university degree. Students often see their university experience as a first step on the employment level, and must then weight the debt incurred through student finance with the advantage they may gain in commerce or industry.
These students consider the long game in employment terms, and understand that the debt they incur may be cancelled out by the high salary obtained through graduate routes. Typically, ex-students who join graduate programs progress more quickly and farther in the job market, meaning higher earnings and therefore easier ability to pay of student debts. Couple this with and exciting job with a Blue-chip company, and the prospects of student loans look more enticing. Who knows, this could even lead to creating software similar to MSN live or designing a search engine!