Are loans affordable after graduation?
So you’ve got your degree and left university and all those years of school, college and higher education have paid off. But, most likely, you’re skint and don’t have a penny to your name. After graduation, one thing most people have to come to terms with is the mountain of debt they face from student loans, rent and of course, the endless parties and nights out.
Unless you are fortunate enough to have generous parents who are backing your financially, the reality for most people is the uncertainty of immediate employment after graduating. The traditional path of graduating from university and then starting a graduate scheme a few months later is no longer the norm for everyone. While blue chip graduate schemes still exist and thousands will start jobs the September after graduating, for many, there are other paths to take such as travelling, internships and volunteer work or moving to the city to try to catch a break.
If you are peniless but are confident of your longer term financial security, the option of taking a bank loan is available to graduates and can be a great way to plug a financial gap if your circumstances are right.Make sure you understand the implications of taking a loan and make sure you can afford the repayments and take advice if you are unsure. If you are interested in getting a loan after graduation, we recommend you check out the Lloyds TSB loan calculator for more information.
Bank loans can be affordable after graduation and here are some of the reasons you may want to take a bank loan:
1. The first thing a lot of people want to do after their finals and three years (or more) of hard study is to go abroad and see the world. If you have graduated and have 3 months off before starting work, you might just want to get away from it all and see South East Asia or South America, as well trodden backpaker routes for twenty somethings. A loan could help fund that travel with the confidence that you will be earning in no time and able to pay it off.
2. Many leaving university don’t feel; they have a defined career path and fit the graduate scheme mould. Careers in the arts or media are becoming increasingly which is driving the demand for internships. The difficulty with these internships is that they are often based in offices in Central London and are often unpaid or low pay for a fixed term contract. If you want to invest in your own development to take a step towards a paid full time job in that industry then you may need some funding to help you through that period and a loan could help.
3. You might need to buy yourself a car, a travel season ticket or need some relocation money to move house to a new city to start a job. A bank loan with defined repayments can help set you up for that next step pout of university as you hit the career ladder.