Graduate Blog

Student vs. Other Loans


When you’re new to the concept of money-borrowing and your only experience of such a thing is filling out a form for student finance, then we suggest you get clued-up on the in’s and out’s of money borrow to avoid costly mistakes.

Student loans are worlds apart from regular loans – Don’t be fooled into thinking the two are even remotely alike. First off, interest rates between the two vary; interest rates for regular loans tend to be higher and accumulate a hell-of-a lot quicker. Student loans are paid back depending on your scale of pay, and take thirty or forty years of smaller, regular payments to be paid off on average. Regular loans need to be paid back very soon after and loan companies will chase you and add on costs should you fail to pay in the allotted time. This failure could lead to charges and possibly even a run-in with the law!

Avoid Unnecessary Credit Cards – Credit Cards are sneaky little buggers, so beware. They advertise seemingly cope-able and small repayments to entice vulnerable takers. However, these ‘minimum repayments’ will barely clear any of the debt and you’ll find yourself still owing on it for years to come – and the longer you take to repay it, the larger the repayment amount! Failure to repay will also massively affect your credit rating which decreases your chance of getting finance for cars and mortgages!

Don’t Be Fooled By PayDay Loans – Pay Day loans are small loans you can take out until your payday arrives, should be struggling to make it until then. They are attractive because the maximum amount isn’t a lot and can be placed automatically into your bank account within hours of applying with limited questions asked, so you feel safe knowing that it’s only a ‘baby loan’ and isn’t scary at all. It is Scary. Interest rates on these seemingly friendly loans are gargantuan and probably the worst of any type of loan – it won’t seem that way because it’s in smaller amounts!

Store Cards are real loans! – You’re at the till buying a guilty-ly expensive load of new clothes and the ‘kind’ cashier asks if you would like 25% of your little spree by taking out a store card. Yes pleas.. STOP! It might seem as though store cards aren’t actual loans because you aren’t borrowing any actual money as such. Store Cards allow you to ‘buy’ your products on the card and pay later and pull you in with an introductory money-off offer. However, you ARE charged interest for these payments – as much as 30%! Avoid these at all costs – they can only bring trouble!


About the Author

Jade A Jade A

I am currently working as a marketing intern for and I have recently graduated from the University of York with a degree in English Language and Linguistics. However, my real passion at university was writing, and particularly writing for blogs. I began a blog myself over a year ago, switching between fashion and beauty, to my university experiences and I have been hooked ever since. Blog writing opened me up to the world of social media and blogging communities that I quickly became a part of, and since then I have been fascinated by the use of blogging and social media for marketing and PR. Working as a marketing intern at is giving me the opportunity to experience marketing and PR first-hand and I enjoy every opportunity I get. It’s really opening my eyes to the prospect of a career in marketing and PR and I hope to continue gaining valuable experience in this area and hopefully a future permanent post in the industry will follow!

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