Student Loans

Unless you or your parents are very wealthy, it's a safe bet that at some point you will have to take out a Student Loan or extra financial support to help subsidise your education. We've put together some useful information about student loans - what they are, how to apply for them, how much you can get, and how you pay them back when it's all over. We also give you information on other types of financial support.

What are Student Loans?

• Student Loans were created by the Government to help fund the expenses students encounter while pursuing a higher education.
• The Student Loan Company is in charge of deciding who gets the loans and how much. See the Student Loans Company website at www.slc.co.uk for more information.

How to Apply for a Student Loan

• All students under 50 years old are eligible to apply for a loan but you must contact your Local Education Authority (LEA), your uni or apply on line through the Department for Education and Skills. Click here to find your friendly neighbourhood LEA.
• Apply as soon as you've received an offer from your school, so that you have the money available to pay tuition fees.

How Much Can You Get?

• Once they've processed your application, the LEA will decide how much of a loan you are eligible for.
• Exactly how much you receive depends on your family's income, where you live, what you'll be studying, which year of course you are in and the length of your course.
• All students - regardless of this - can receive 75% of the maximum allowance which varies from year to year.
• You will receive three instalments of your loan, with the first in the form of a cheque that you pick up at uni, and the other two paid directly into your bank.
• Interest on your loans (currently 2.4%) is accrued the moment you cash the first cheque.

How Do You Pay It Back?

• You will have to begin paying your loan back the April after you graduate but only if you are earning more than £10,000.
• 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 www.inlandrevenue.gov.uk/csl/index.htm for more information.
• If you earn more than £10,000 or work for yourself and have profits over £10,000, you will generally have to pay 9% of whatever exceeds this amount. For in depth information about Student Loans and applying for financial help, please see the Department of Educations and Skills page.