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However with the increase in tuition fees, and the evaporation of many work opportunities in the current economic climate, can you afford to take yourself into a mountain of debt?  We examine the ups and downs of the student loan, and what you are really taking on.

First of all it is important to find out what you are in fact entitled to.  There is no use pondering whether or not to take the jump, if you don’t know what is on offer.  To begin with, everyone is entitled to a loan of £3,145 to cover the tuition fees for that calendar year.   You are then allocated a ‘living costs’ loan which aims to help cover such necessities as rent, food and probably a lot of drink.  This amount is determined by an evaluation of you and your family circumstances.  Many factors are considered, including salaries, mortgages and debt.  You will then be awarded a maximum figure – ranging from £3000 - £6500 – that you are entitled to per year.  The premise behind this is that lesser privileged families are unable to fully support their children’s academic studies, meaning that they require more of a helping hand financially.

This all sounds very complicated, but all your fears can be allayed with a quick phone call to a member of your local education authority, who will swiftly let you know how much support you can expect in the upcoming year.

I know what the pessimists of you out there are thinking, “So does this mean I will be in £20,000 of debt when I finish university?”  The straight answer is yes, but it’s not that simple.  For starters you only start to pay back the money owed once you have finished your course and are earning at least £15,000 per year and the interest rate remains fractionally small, even after the years that you leave university.

For many of you, the question whether or not to take out a student loan is the same question as whether or not to go to Uni.  The majority simply will not be able to afford the next three years without it.  So you really need to ask yourself, do you have to go to university?  For prospective Doctors or Nurses, Teachers or Architects this is a no-brainer, but for those of you on the fringes, you need to spend some time in making a calculated decision on your future.

The key to student loan is remembering that it is not your money.  You have borrowed money for an investment, an investment in you!  You are paying for an education that has to guarantee you a better future or otherwise the investment is not worthwhile.  By committing to a student loan you are essentially backing yourself to repay it with interest, the question is – are you worth the gamble?