A Guide To Student Loans

student in library

Whether it's your first time away or you're returning to University or College, a student loan can be essential to allow you to follow your dreams of further education. Affordability can be a barrier to learning, so what are loans and how do they work?

If you are considering going into higher education in England and Wales, either through a university or a college, there’s no doubt that it can be an expensive process. You will be expected to pay tuition fees on top of any living costs that you accrue during your stay in education.

To this end, it is vital that you understand how student loans work before you plan your course or degree. Student loans can be a confusing; however, they need not be perplexing with a few handy tips. The first thing to understand is eligibility i.e.. who is eligible for a student loan?

What Types of Student Loan Are There?

Currently there are two main kinds of student loan available from the government. The first type is a Tuition Fee Loan – this is used to cover any tuition fees that you have to pay for your course or degree.

The second type is a Maintenance/Loan for Living Costs loan – this is used to help you with your daily living costs. These two kinds of loans are consolidated to form a ‘total’ student loan package.

Who Gets A Student Loan?

As of the date of writing (2012), full-time students aged up to 54 can obtain a student loan, even if they have studied in higher education before. However, to obtain a student loan, they must prove that they intend to work after their course has completed and certain groups of people may not be eligible for a loan.

For example non-UK students, postgraduate students (unless they are taking PGCE courses), part-time students (unless they meet set criteria) and Diploma of Nursing/Midwifery students (although in many cases any such courses can be funded by the NHS).

If you are unsure as to whether or not you will be eligible for a student loan, the best place to ask is at your local Student Loans Company (SLC) office or via your intended university or college.

How Much Do You Get?

The amount that you could receive as a student loan will also differ widely, depending on your individual circumstances, the university or college that you are planning to attend and the course/degree that you intend to take. Again, as government-funded loans and grants are currently administered by the Student Loans Company (SLC), they will be best placed to advise you about the amount you could borrow.

How Do I Pay It Back?

It is worth noting that student loans are usually borrowed at a nominal interest rate. This means that you will generally won’t have to pay back any more money than the original amount borrowed.

Although interest is added to a student loan account from the date it is taken out, you won’t have to pay it back until you have graduated and you are earning in excess of £15,000. However, if you prefer, you can pay back your student loan, or parts of it at any time, you do not have to wait until you are earning this amount.

In Summary

So, if you are thinking about entering higher education and you have received a University or College offer (or provisional offer) for placement, it is wise to make an application for a student loan immediately to secure the funding that you will need.

You Might Like

  • A Guide To Student Loans

    Student debt is in the press a lot now so what are student loans, maintenance grants and all the issues surrounding them?
  • A Guide To Being A Mature Student

    Find out about being a mature student. What to consider and what to think about before taking the plunge. A quick and simple guide to help you identify possible pitfalls
  • Unsecured Loans Explained

    Know the difference between unsecured loans and secured? Read our quick and simple guide to find out exactly what.
  • How Does A Guarantor Loan Work?

    If you need to borrow money, then you may have come across a guarantor loan before? Want to know how they work?
  • What Are Secured Loans?

    Ever wondered about the difference between secured loans and unsecured loans?

Useful Websites

Add Your Site Here
  • Confused.com
    Discover cheap insurance, loans, mortgages and credit cards with ease. You can even switch your utilities with their comparison service. All major providers - plus you get a robot toy to boot!
  • Cash Lady
    CashLady is a short term loan service provider in the UK offering payday loans, cash loans and small installment loans.
  • Logbook Calculator
    Borrow money with your car as the security regardless of your credit rating. Log Book Loans have increased in popularity in the UK, so check our site out to see what you can borrow now.
  • Car Cash Point
    Withdraw the cash from your car including prestigious and vintage cars.
  • Lending Expert
    Visit Lending Expert for comparison and expert advice on cheap loans, mortgages and finance.
  • Best UK Loans
    Shop around for the best personal loan rates. Secured and unsecured loans for any purpose including home improvements, new car or holiday.
  • Add Your Website Here