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Financial Life After Student Loan

Graduation is supposed to be, one of the happiest days of your life. You’ve completed your degree after ‘X’ amount of years, and you receive your plastic scroll from a man you’ve never met before (Vice Chancellor who?). All your course-mates are there to cheer as you walk on stage, along with the guy who did no work for the group presentation you had together, and the girl who always got the highest grades, without showing up. You’re congratulated by your lecturers who are so proud, but can’t wait to see the back of you. It’s a happy day. Until it ends…

Then the dust settles, and you find yourself wondering, what next? What now after your structured, loan filled life comes to an end? Do you move back home with the parents or try and make it on your own?

One of the biggest problems amongst graduates is that after you finally find work, and want to move out, you need a deposit for your new rented accommodation. Not every graduate has the luxury or choice to move home after they finish their degree, and you can find yourself in a slight predicament when trying to accumulate a deposit, your first month’s rent and still have money to eat.

Deep breath, the panic is setting in. Don’t worry, all graduates get this, and it has a name (albeit a made-up term). Yes, you’ve got – ‘post grad panic’.

‘Post Grad Panic’

Now post grad panic occurs in the period after you finish your degree. It ranges from stressing about finding a job, to finding a deposit for new rented accommodation without a loan to cover you, to generally just stressing about being a proper adult. In this case, the ‘post grad panic’ I’m referring to, comes when trying to magic up a deposit and first month’s rent for your new accommodation…

Now the organised graduates amongst us, (as if there is a thing) saved up money for a deposit with their last loan, whilst the rest of us… did not. You’ve got yourself a grad job, and you’re really excited to start but then it hits you, ‘oh, I’m going to need somewhere to live…’ Without your first payslip from the job you haven’t quite started yet, having no home may put a spanner in the works for your first day. With most landlords and renters wanting the first months’ rent and a deposit upfront, you might find yourself in a slight pickle.

Determined not to run to mummy or daddy, you’re short on options. Whilst a loan could be the knight in shining armour you need, 3 years’ worth of debt, and late internet and phone bills, have pretty much ruined you’re the credit score you didn’t know existed. But, where there’s a will, there’s a way. In the form of guarantor loans…

What are guarantor loans?

Now, whilst this requires a little helping hand from a friend or family member, you don’t actually need any money from them. (so, you can hold your head high) A guarantor loan, essentially, is money lent through trust based lending. You don’t need a perfect credit score – all you need is someone who can sign for the loan with you, declaring that they are happy to cover any repayments on the loan, should you miss them. If you’re worried about your repayments, you can always go here to look at ways to ensure you are able to pay, using a repayment calculator.

Your guarantor can be a friend, family member or partner. But, they must have a good credit score and be aged 18-75 (they don’t need to be a UK homeowner, but if they are, it helps your application all the more). Whilst some panicking guarantor’s may fear that their home or possessions will be up as collateral against the loan, the short answer is – they’re not. A guarantor loan is an unsecure loan, meaning that you don’t have to put up anything against the loan.

Most guarantor loan companies, like TFS Loans, have an almost instant pay-out (usually in a 24hr period) Meaning, you can secure a deposit for your new flat and start repaying when you start your new grad job. Good news, you don’t have to sleep under your desk… All you must do is provide proof that you have an income in order to repay the loan.

Guarantor loans may only be right for those with bad credit, if you are looking for a loan it is important to always seek independent financial advice prior to taking out a loan. If you have a good credit score, a guarantor loan may not be the best decision and it is essential to always look around for different offers.