Student Loans

Student loans were created by the Government to help fund the expenses students encounter while pursuing a higher education. The Student Loans Company is in charge of deciding who gets the loans and how much. Please see their website for more information.

How to apply for a student loan
All students under 50 years old are eligible to apply but you must contact your Local Education Authority (LEA), your university or apply online through the Department for Education and Skills (DfES). Apply as soon as you've received an offer from your university, so that you are able to pay your tuition fees.

How much you can get
Once they've processed your application, the LEA will decide how much of a loan you are eligible for. The maximum amounts available to you in your first year for 2009/10 are as follows:

	Living at home	Living away from home outside London	Living away from home in London
Maximum Student Loan for Maintenance	£3,838	£4,950	£6,928
72% not income assessed	£2,763	£3,564	£4,988
Remainder (around 28%) - income assessed	£1,075	£1,386	£1,940

But exactly how much you receive depends on your family's income, where you live, what you'll be studying, which year of your course you are in and the length of your course. All students regardless of this can receive 75% of the maximum allowance. You will receive three instalments of your loan, with the first in the form of a cheque that you can pick up at university, and the other two paid directly into your bank. Interest is accrued the moment you cash the first cheque.

How you pay it back
You will have to begin paying it back the April after you graduate but only if you are earning more than £15,000. It is also possible to begin payments right away after graduating, if you can afford it. This will save you interest in the future, and will shorten the repayment time.

The Student Loans Company work with Inland Revenue to deduct a set amount from your pay, so your repayments will depend on their Student Loan Deduction rates. Your employer will have to keep track of what you've paid in. Check out the Inland Revenue website for more information.

Back to Student Finances

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