Student Advice Network - Student Finance, Student Employment, Student Accommodation and more

Student Loans

Student loans or student finance is basically money given by the government to help pay for the costs of higher education. This comes in the form of either a loan, a grant or both. In addition to this you could also qualify for grants given by your Universities or colleges. All these are subject to means testing (ie: on a sliding level based on your household income) so not everyone gets the same.

The people that give out all the loans within the United Kingdom are called the Student Loans Company (SLC). It this this website you need to visit if you need any specific help with regards to your loan or just general support with repayment or maybe even if you are an overseas student

There are a few types of loans that you may be able to apply for, they are:

Student tuition fee loan
Maintenance Loan
Student grant (From the Government)
Grant from your place of study
Other grants related to disabilities etc

Applying for the student loan

The process of applying can seem daunting however the earlier you apply for your student loan the better it is. You can apply online via www.direct.gov.uk where you can find all the information you need if you are unsure ofwhat you are doing. Alternatively, to be taken straight to the application page and to apply for the student loan click here.

You could also go into your local Council offices and enquire about the application form, they should be able to give you a paper copy if you prefer doing it the old fashioned way.

Always remember to provide all the necessary identification and paperwork the form asks for (like your parents P45s, ID and proof of address) because if you don't do this the whole process will be delayed and you will get your loan late...beleive me I have made this mistake

Costs of being a student

When applying for your tuition fee loan you must remember to factor in everything. It usually asks you how much tuition loan you want, if you are paying for the whole lot check with your University or College the amounts for your particular academic year. For example I know for the year 2009/2010 the amount is £3225. It is possible to apply for a partical loan if you are getting contributions from family members or perhaps your own savings so make sure you read the form properly.

Living away from home will make things a lot more expensive. Personally, the experience of being independant and being able to meet so many people is well worth the extra costs of paying rent. Make sure when you get your maintenance loan through that it covers the costs of your rent, food, going out and course material like books and stationary.

There are unfortunately a lot of cases where financial aid for students is needed because of the mounting costs of everything. There are special student funding departments for people that get into difficulties located within most Universities and sometimes within the local council.

*Check out our Student Budgeting Tips section for more help on this area*

Repayment of student loans

As with all loans there is of course the small matter of repayment. The student loan is quite good in that while you are still studying it earns only a small amount of interest and you don't have to pay it back until you have a job earning over £15,000 a year.

If you started your course in or after 1998 your repayments will be based upon your income. You will only make repayments if you earn over the 'repayment threshhold'.

If you started your course before 1998 you will have a different sort of student loan, you will make repayments in monthly installments based on what you owe and the length of time you have had the loan plus interest (unfortunately).

Having trouble with repaying your student loan? If you are not able to defer payment because you earn above the 'repayment threshhold' you must notify the Student Loans Company as soon as possible to discuss your situtation. Whilst you can not stop payments if you earn over £15,000 they may be able to help you by lowering the amount you pay each month

If you fail to make repayments the SLC will first of al try to contact you by letter and phone, if that fails after a few attemps they may have to use debt collections agencies which will visit your house to try and recover the amount owed. In some cases legal action will also be taken....so be careful and make sure to always make payment or tell them if you can't.

*Please check out the tips on repaying the student loan and saving money section

Other help

There is also help for people in various circumstances such as having a disability and being a parent.

Having a disability - If you have a disability there is a range other ways in which the government helps you. Whether you have a physical or mental impairment you could have access to the following:

Addition student grants (based on performance at a-level)*
Disabled Students' Allowance
Access to Learning Fund
Disability living Allowance
Employment and Support Allowance

Please visit the DirectGov website to get further information on what other help is available.

*If you are lucky enough to fall into the catagory where your University offers non-repayable student grants in return for high grades such AAA or AAB at A-level then by all means go for it. I know of a few Universities that offer £1000+ per year for students who achieve high grades such as there. If you are unsure please check with the University.