Loans / Student Loans

A Guide to Student Loans

Introduction
With the introduction of Tuition Fees in 1998, Student Loans have become the primary source of income for the majority of students, covering both Tuition fees and living costs.

How, Where And When?
As of the Academic year starting September 1999 Student Loans must be applied for through your LEA (Local Education Authority) as with the previous grants system, and not through the University, which was previously the case.

Theoretically this means that you should have your money as you start University, and not further through the term once you have battled through the queues to apply for your loan.

You should be given the option of when you want your money – either one lump sum, or three termly payments – and though the temptation may be to have the full £3000 in one fell swoop, try to restrain yourself and have the money each term to cover your termly costs.

The total Student Loan you can claim is dependent on a number of factors – whether you are studying in London or elsewhere, whether you choose to live at home with parents or in rented or other accommodation, and whether you are in your final year of study (when the amount available is less). It is also possible for you to choose whether you take the full amount that is available to you, or whether you think you can manage on a lesser amount. Do a full budget for the entire year, and see what you think you can live on!

Unlike other loans, the Student Loan is not repaid until you finish your studies, when the amount you owe will be added onto your income tax for the rest of your life in the form of a Graduate Tax.

If you have any queries about Student Loans, you should contact your LEA who will be able to give you details about the application process and the amounts available to you.