Student’s Loan or the Graduate Tax – The Better Choice?

You will need good education to have a better life. But the means of good educations are getting costlier. And it has become financially difficult for the students to have education. So for their conveniences a new way of financial support has been in the process of introduction in the UK and the North Ireland. It is called “Graduate Tax”.

Student Loan vs. Graduate Tax

Well, there has been much conversation about this topic. But let’s know some basics about both of them. The student load is generally provided from the banks or other financial institutions that specializes in the student finance. Students can repay them as the regular loans after they graduates or abandons study. There are limits for fees and the amount.

The “Graduate Tax” is almost the same only the money is provided by the university and the repayment of the loan will be added in the taxes. That means the money will be taken by charging additional money from the taxes.

The Pros and Cons

In the student loans you have to pay them as long as you have something valuable on you. On the other hand, may have to pay less return if your income is less than £ 21,000. Then again you might be relieved of the loan if you reach a certain age (most likely 30 years after graduating).  But they varsity is at liberty to state the fee. And it is going to be high. But in the end it is way better than the student loans.

Well, you might still be wondering. Please not consult with the guidance counselor or any other financial consultant to get a clear idea of everything. But everything depends on your financial conveniences. So if you think that it’s not good enough, then don’t take it.