Career Experts Advise Considering Apprenticeships Amidst Rising University Loan Repayments
- New students will now be expected to pay nearly twice as much loans
- The repayment threshold has been lowered to £25,000 and the repayment period extended to 40 years
- Career experts share why now is the time to consider choosing an apprenticeship over university
Recent news revealed that university students will be expected to repay nearly twice as much in loans compared to those who have previously studied.
According to the figures, this change will result in students repaying an estimate of £450 annually, a significant increase from the previous £243 per year.
During his recent appearance on Good Morning, financial expert Martin Lewis explained how the changes will impact university students from September.
Firstly, he emphasised that new students will commence loan repayments once their income reaches £25,000. This revised threshold not only marks a reduction from the current level but also means students will be expected to pay back more each year on the same income.
Lewis pointed out that the loan repayment period will now extend to 40 years, compared to the previous 30 years. This means that the majority of graduates will find themselves repaying their student loans for their entire working lives.
In order to help advise those who may be considering another route to learning, experts at RateMyApprenticeship have shared some of the top reasons for embarking on an apprenticeship.
- Earn while you learn
In addition to acquiring industry-specific qualifications such as NVQs, HNCs, or a Bachelor’s degree, apprentices do receive a salary. The National Minimum Wage for an apprentice is £4.81 per hour, but many employers pay significantly more.
Due to valuable experience and an early start in their careers, many higher-level apprentices have the potential to earn over £50,000 more than most graduates in their career, according to a recent study by the Sutton Trust.
Moreover, apprentices enjoy various employee benefits, including paid holidays and an enrolment in a pension scheme.
- Invaluable firsthand experience
If you’re someone who enjoys learning through practical experience and wants to dive into the world of work, then an apprenticeship is likely the ideal choice for you.
Rather than dedicating your time to classroom studies, an apprenticeship allows you to collaborate with industry experts on real world projects. This invaluable firsthand experience will not only equip you with essential knowledge and skills but also foster self-assurance, enabling you to thrive within a professional setting.
- Watch your career sky rocket
Employers will undoubtedly be impressed when they learn about your extensive professional qualifications and relevant work experience. This is especially true for apprentices who gain a wealth of technical knowledge and soft skills that are essential to excelling in the workforce.
As a result of unique training, apprentices are highly sought after by employers.
Statistics show that a huge 85% of apprentices stay in employment, and 64% of these continue working with the same employer and many of these advance to higher level positions.
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