A student loan can be a source of worry for many graduates. You will do a course and enjoy it and then get a job. The loan repayments come out of your tax code so you probably barely recognise them. However, when you get that letter telling you how much you owe and what the interest is, then this can be scary, but it is best to ignore that letter. You have no idea if you will even pay back all of the loan and as the repayments are designed to be affordable, as you only repay once you are earning above a certain threshold, you really need never worry about the total cost. So whether you get a personal loan, should not be effected too much, but you can consider a few things.
Your ability to manage repayments may slightly change due to having a student loan. If you are earning above the threshold, you will be making repayments through your tax code. This will mean that your take-home pay will be slightly less than others who do not have student loan repayments to make. This is worth considering.
However, your repayments, as they are in your tax code, will only increase if your income goes up and will go down if your income goes down. This means that they are much easier to manage than normal loan repayments which will stay constant regardless of your income. The loan repayments are also pretty small and so are not a significant chunk of your income.
Therefore you should not worry about personal loan repayments in the context of your loan repayments as they will make very little difference.
Being accepted for a loan
Your chances of being accepted for a loan should not differ much if you have a student loan. This is because the repayments are income linked and small. Even if using a guaranteed payday loan. Therefore you should not find that a lender will be concerned about them. They will look at your income in order to decide whether they want to lend to you, but your gross income figure will not be impacted by your loan, it is only your take home pay that is changed. Sometimes your take home pay is considered when looking at loan applicants, but this is normally only for mortgages and not for personal loans.
A modern student loan will not show up on your credit rating, however if you have an older loan from 1990-1997 then it will show up if you have missed a repayment or paid late. This means that you will need to be careful and if you have made mistakes in the past then you might pay the price for them. Do check your records thought and ensure that your credit record is correct and if they say you missed a payment, make sure that they are correct. However most students with loans will fall into the latter category and not have to worry about doing this.
Normal loan questions
Regardless of whether you have a student loan or not, you will need to ask yourself a series of questions before taking out the personal loan. It is really important to think carefully about the loan and do lots of research before taking one out.
You need to think about whether you can afford the loan. It is important to consider whether the cost of the loan is too high but also whether you can afford the repayments. If you are making repayments to a student loan then this will decrease your income a bit so may have an impact. You should also make sure that you do a lot of research and make sure that you are getting the best loan for you. This means the best type of loan to suit your purpose but also one that you can afford that lasts an amount of time that suits you and has manageable repayments. It is important to compare different loans so that you can be confident in your decision.
A loan is a big decision and t is worth doing all this research before you take one out. A personal loan could last for five or more years and so it is a big commitment. You want to make sure that you are confident that you will be able to cope with the repayments all through these years. Try to think about what changes might come about and how this might impact your ability to repay the loan. It can be hard to predict the future but it is worth just thinking about your future plans. Consider what might happen if your family circumstances change, if your job changes or you get made redundant, if your family grows or things like that and how that might impact your ability to make the loan repayments.