Did you know that Bill Gates of Microsoft and Mark Zuckerberg of Facebook were college dropouts? They quit college in the middle of their degrees and went on launching their own enterprises.
These successful dropouts have been a motivation for so many students around the world. And it becomes more daring since they dropped out of prestigious colleges of the world.
When an exceptionally smart graduate has a billion dollar idea to make a change in this world, dropping out of college is the first thought in their mind. Finances pose a bit of a challenge in the beginning, but the availability of 12-month loansmakes their life easier and they go their way of achieving their target.
The journey and decision of leaving a college degree in the middle is not an easy one. You analyse what all you went through to reach here, and if you would be able to face all the consequences that would come through. The biggest question remains that of the student loan.
What about their Student Loans?
The United Kingdom has a provision in student loans in case the student decides to suspend or leave the course midway.
In a scenario where a student has to suspend or leave his/her college degree for some time, there is an option to halt/quit the student loan as well. This means that you are only liable to pay the part of your debt that you in fact used.
What can the reasons behind suspension/leave be?
You may have a medical condition or an ill family member to be taken care of. When it is absolutely necessary to take a break from your degree, you can go ahead and proceed with the suspension of your student loan while you are away.
The key reasons behind the suspension of studies are:
- Serious illness
- Taking care of a loved one
- Medical treatment
- Temporary Relocation
Talking about leaving the course altogether, it can be as simple as taking up an entirely different career path, or as complex as suffering from a terrible medical condition. When you are sure of not returning to this degree, you can begin the procedure of leaving your student loan.
How do you proceed to suspend/leave your loan?
The first step of yours should be to inform your college or university about your decision.
You may be asked to submit proper evidence in support of your decision. The evidence you submit will have to be convincing enough for the authorities to grant you suspension/leave from your loan.
The university or college then intimates your financing source about the number of days you attended the course, and they evaluate what part of your loan you are entitled to repay.
Following your application, the funding will automatically stop and you will only have to repay the entitled amount of your student loan.
What factors determine the repayment amount?
The repayment amount of your loan entirely depends on the duration of the course you have covered.
If you are in the second or third year of your course, all the charges incurred will be included in your entitled amount.
In addition, you will have to pay back the tuition fees of the current academic year as the following percentage of the loan amount of that respective year.
- 25% – if you are in term 1.
- 50%– if you are in term 2.
- 100%– if you are in term 3.
You will have to check with the university/college or your financing source to know how and when you are supposed to make the repayments.
What if the student loan was overpaid?
This can happen during the course of a student loan. In case you were overpaid after suspension or withdrawal from the course, you will be notified by the authorities. You will, of course, have to repay this extra amount as well.
But, if you opted for a suspension and you resume your studies after some time, this extra amount is deducted from the total amount that time. This avoids double payments and repayments from the whole loan.
What are the financing options after suspension/withdrawal?
After Suspension- You can apply the college or university for your maintenance for 60 days of your suspension period. You may get some finances to get through a tough period. You may be pregnant or suffering from a physical condition, and you could really use some money. If you are eligible, you may even be granted Disabled’ Students Allowance.
After Withdrawal- When you withdraw completely from your studies, you will definitely have a reason to. Whatever journey you might be getting ready to embark upon, you still might need some funds to get through. You can be smart about your circumstances and opt for an online instalment loan. You will have the funds for the moment to get by, and you can repay a small amount each month.
What happens on returning after suspension?
When you are through your suspension period and continue your course at the college or university, you are still eligible for student finance.
If you return within the same academic year of your suspension, you report to the administration. Your student loan is reassessed and you can take it up from where you left it.
But, if you return to a different academic year, you will go through the whole process of applying for financing your education again.
Summarising the whole discussion,
Life can be unpredictable and even the legal laws agree to it. Your student loan is never a liability for you. They are fair and comfortable.
Student loans were introduced to help students get a better future. And that is precisely what they do. They do not hinder your path to success. If you find a different road to your progress, they wave a happy goodbye to you and ask for fair repayment in return.
For your new journey down the road, 12-month loans stand to wait for you at the next stop. They pick you up right where you leave from.