Students advised to shop around for best loan deals

Students can obtain loans and credit on advantageous terms if they shop around, a debt charity has advised.

However, the cheapest option for most students is the loan
available from the student loan company and every effort should be made to obtain this, the Consumer Credit Counselling Service said.

“Official loans that you get from student loans companies are very advantageous, they offer low rates of interest, and you don’t have to pay them off until you’re earning a certain amount of money,” spokesman Frances Walker said.

She added that it is best for students “to avoid expensive forms of credit like credit cards” and to explore all options available to get the best deals.

Ms Walker also advised students to open a student bank account, which should usually offer them interest-free overdraft facilities.

In related news, rising interest rates mean consumers are using less consumer credit, according to the Finance and Leasing Association.

© Adfero Ltd

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