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3 Things British Students Need to Know for Student Loans

We do know that students oftentimes need help to cover the costs of attending University? Do you need a loan? Student gift aid or scholarship can be helpful in filling this need, but not all students are eligible for grants and even when it is the case they can hardly get by on them. Student loan is another option to cover your costs during your studies. There are various kinds of loans that might be helpful if you need financial aid.

Loan application

British undergraduate and PGCE students can put in for a loan through their local education authority (LEA) in England, Wales, the Student Awards Agency for Scotland, or the local education and library board in Northern Ireland. After the assessment of the applications, the LEA, SAAS or education and library board determine the amount that the student is eligible to borrow. To reach a decision the authority takes into account the family’s income, whether the student will be living at home and other factors.

Loan

Students in England and Wales can receive 75 % of the full loan (around £3,000), while the final 25% are means-tested. Extra money are available as well (currently around £ 1000) if the student go to university in London. Scotland has a slightly different assessment method according to which more of the loan is means-tested. The loan you received is paid usually in three installments during each year of the student’s course. There are some special conditions for some courses or part-time courses.

Interest rates

Loans are not to be repaid until students have completed their course and are earning £ 15 000 a year. The interest rate is updated annually and is tied to inflation. There is no fixed schedule for clearing the debt and it will be cancelled if it had not been cleared 25 years after the first repayment

Some significant changes to the loans system occurred in England, Wales and Northern Ireland from 2006. One of them is that upfront tuition fees will be abolished and the fee is going to be added to students’ loan. Thus, the students will have to pay them back after they finished the course.

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