STUDENT LOAN FIRMS FROM PRIVATE SECTOR GOT CRITICISM AFTER INCREASING THE INTEREST RATE IN UK

What would be the feeling when you want to study in a reputed college or universities possess the required marks and completely eligible upon the criteria. But still, you couldn’t continue your studies due to the lack of money.
 
UCAS (The United and Colleges Admission Services) in the UK has been accused of increasing the interest rate on higher studies and using its position in an abusing way to make hurdles for those students who are willing to study further. According to the announcement the rule would be applicable in all the universities including colleges and in schools too.
 
DEMERITS OF INCREASING THE DEBT RATE ON STUDENTS FUNDING:
 
According to the recent survey, private student loan firms were responsible to provide the education funds of about 40,000 students. But from now the private loan firms refused to give any financial ads to the needy and eligible students.
Due to this announcement following are the factors that affect the previous selecting criteria for all those students who deserve to the government loans to pay their tuition fee for further studies in the future.
 
Increased Demotivation In Students:
 
Increased Demotivation
 
Due to this announcement the higher interest rate on the financial loan from the private firms. Students may get demotivate for not bearing their financial expenses as well as couldn’t repay the previous loans and thus the eligible and hardworking students are unable to continue their studies further because if the government sector loan firms will not support them then they have surely gone towards the private loan firms and have to pay extra amount in the interest as compare to the original amount that is very disgraceful phenomenon.
 
Financial Aid Is Not Enough:
 
Students surely need financial aids throughout their academic career not only to pay their tuition and semester fee but for other expenses like labs and practical expense, assignment writing services expense, research survey expense and so on like assistance of professional essay writers expense. Though all these sources are very important in student life to get maximum grades in their finals otherwise they couldn’t survive during their academic sessions.
 
Unfavorable Assistance from the Government Sectors:
 
The Government of the UK that is responsible for the current situation didn’t show any favorable assistance on this occasion. Infect a circular email has been sent towards them to all students throughout the region in which they state that:
 
In the future, the interest rate on financial aids would be 8% to 23.7% from private loan firms because government firms will not allow any loans from now.
 
A barrier in Quality Education:
 
This announcement would be proved as the main hurdle in a quality education because due to the higher interest rate the eligible students may not get their required seats as per their marks in the selected universities and colleges. Under these circumstances, the quality of education may be affected badly for the new students as well as for the previous students who already taken the loans for their whole academic career.
 
Long Period Debt Means Starting Your Career with Loan:
 
One of the most biggest demerits of student loans in UK is that it has higher interest rate and therefore when students take these loans then they should bear in mind that it will make them being in debt for prolong period because due to interest rate the amount of loan will keep on increasing until the debtor start repaying it.
 
Another side of the mirror in this scenario is that an individual who took the loan getting into a long term debt at their early age and due to this they couldn’t pay focus on their career instead of this their only motive becomes the way through which they can repay their loans quickly that is very stressful and exhausted thought for their institutional period.

By admin At September 7, 2019

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