What is a student loan?
It was created by the Government to fund the expenses students encounter during higher education and the SLC (Student Loan Company) dictate who is entitled to a loan and how much.
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 SLC 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. Maximum amounts for 2002/03 are as follows:
?3,905 for students living away from home
?3,090 for students living at home
?4,815 for students living in London and living away from home.
But 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
You will receive three instalments of your loan, with the first in the form of a cheque that pick up at uni, and the other two paid directly into your bank
Interest on your loans is accrued the moment you cash the first cheque. Bummer
How 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.