Student Finance in the UK: As wonderful as the idea of schooling sounds, it is not exactly a walk in the park as it involves financial commitments. While the university may be the best time of your life, be aware that it may also be cost-intensive, as getting a degree isn’t cheap.
Several factors influence your schooling expenses, including the location of your school, where you reside, your tuition fees, and your lifestyle choices.
Getting the money to finance your education may be tight. However, student finance has come to the rescue of thousands of students over the years. Keep reading to find out more about student finance and how you can utilize it in London.
Student finance is a loan the government gives to support students who find it hard to carry the cost of schooling.
The money is usually channeled to helping students pay for tuition fees and living costs as students during their first undergraduate course.
Student finance is given to all eligible persons. Whether a student is eligible depends on some factors such as your university, nationality, course, residency, and age.
Student Finance in UK
Student finance can also be referred to as student loans. However, Student loan in UK is provided by the government for students to repay after they finish university.
They can also repay their loans when their gross income is more than £25,000 a year after tax and other deductions have been done.
How to Get the Student Finance Loan in UK
Student loans can be obtained with simple steps. Follow the steps below to get your student loan:
- You can apply by submitting your application online and in three minutes you will be credited. However, you will need a co-signer, and you can easily add them without hassle.
- Personalize your repayment plan by deciding how you wish to repay the loan and how quickly you wish to repay it.
- To conclude your application, you can sign the terms of the application electronically and the rest will be taken care of by your school.
How Student Finance Loan Works in the UK
Student Finance refers to the loan you can get from the UK government regarding the financial aspect of your education.
Once you have successfully processed and gotten your application approved by the government. You will be notified of the amount of loan you are eligible to receive.
The amount of loan you receive depends on some factors. Some of which include your course of study, your household income, and whether you are a new or continuing student.
Types of Student Loan
There are several types of student loans however there are two types of student loans available in the UK. They are explained below:
Tuition fees refer to the money you are being charged by your school to cover the cost of the course you wish to study.
It also covers your access to resource materials such as the library, workshops, and laboratories depending on your course.
Tuition fees highly depend on where you come from and where you are going to study. It does not cover the student’s cost of living or additional courses and book materials.
This loan is paid directly to your school and you have to pay it back with interest when you finish your course or graduate.
The cost of tuition fees varies by school in the UK. If you are a part-time student in the UK, you can also get a loan if you are studying at least 25% of a full-time course.
As a full-time student, you can get a tuition fee loan of £9,250 and with an accelerated degree course, you could get up to £11,100.
A maintenance loan refers to the money you are given by the government to help you survive while in school.
Surviving in school involves costs such as accommodation, food, transportation, and additional books you need to study, the maintenance loan helps to cover such bills.
Unlike the tuition fees loan, the amount you can borrow here is highly dependent on where you live, study, and your household income.
Simply put, the maintenance loan helps you with your everyday expenses while you are in school. If you go to school from home you can borrow up to £8,400 for one academic year.
If you live away from home, you can borrow £9,978 for one academic year. Take note that the maintenance loan is paid into your account in three installments throughout the year.
How Do I Repay My Student Loan?
You are to repay your student loan when you graduate however there is an earning threshold for you to meet up with before you can begin paying back your loan.
Your repayments also depend on your earnings after leaving university (plus interests) as well as the loan you were on.
It is important to note that your student debt is wiped out 30 years after you graduate irrespective of how much has been repaid.
What Other Financial Help Can I Get as A Student?
Students in the UK can also be eligible for grants and bursaries and not just loans. Students can be eligible for grants and bursaries if they fall into one of these categories:
- Firstly, students who are disabled.
- Students who come from very low-income backgrounds.
- Students who have dependents like children.
- And also, students with very high academic achievements.
When do I Get Funding for Student Finance?
Funding refers to when you are given a loan, you can get funding at different times. Below are some of the times:
- You get funding during your first undergraduate course
- If you fail a year and need to retake it
- If you have a personal challenge that warrants you to pause your studies
- If you change your school or course midway through your schooling.
What is the Interest Rate like?
The interest rate on student loans is based on the retail price index. A measure of inflation including an extra 3%.