About UK Student Loans
Student loans are necessary for a majority of students in any country. In the United Kingdom, the cost of attending a college or university can be relatively reasonable for citizens who are able to secure government-funded grants or school-funded bursaries, scholarships and awards. If a student cannot obtain these forms of free money, however, private and public student loan options can cover the costs of attending a United Kingdom-based college or university, which may include tuition, as well as the costs of living.
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Identification
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In order to obtain UK student loans, an individual must pursue a degree in higher education, such as a first degree, undergraduate degree or a teaching program. In addition to this, the student must be a resident of the United Kingdom and must intend to study at a college or university in the United Kingdom. Being a "resident" of the United Kingdom can mean that the student is an "ordinarily resident" in England, has been "ordinarily resident" for three years prior to applying for higher education or is a UK national who has obtained "settled status."
Types
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Student loans in the United Kingdom can come in many forms and amounts. Students can apply for aid that will cover tuition fees, the cost of living, the cost of taking care of dependant adults or children and scholarships that may cover a combination of these expenses. Maintenance grants and special support grants are also given by the government to students whose household incomes are as high as £60,005 or lower than £25,000 for new students, and as high as £39,305 or lower than £18,360 for continuing higher education students. Though the government provides a significant amount of the student loan funds, there are loan companies that also specialize in UK student loans. They include Misterfast, Sallie Mae UK, Morgan Gartmore Finance and the National Association of Student Money Advisors (NASMA).
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Geography
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The United Kingdom is made up of four countries: England, Wales, Scotland and Northern Ireland, which is separate from the Republic of Ireland. Students who attend colleges and universities within these four countries are able to apply for UK student loans. Residents of England are able to apply for government-funded student loans through Directgov, while students from Northern Ireland apply through Student Finance ni, Scotland residents apply through the Student Awards Agency for Scotland (SAAS) and Wales residents apply through Student Finance Wales. Though students from outside of the United Kingdom can still obtain student loans if they wish to attend a U.K.-based college or university, they generally must secure their financing through private loans or through their government's own student loan programs.
Features
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For United Kingdom residents who are studying in London and must live away from home, a typical student loan will total £6,475, according to Directgov. These funds are typically disbursed in three installments, whether they are provided by the government or a public lender. Applications to apply for the following year of schooling are usually available on the first of every year.
Considerations
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Most UK student loans accrue interest while the borrower is in school. This interest is equivalent to the rate of inflation, which is adjusted each year to align with Britain'sRetail Prices Index. The current interest rate on most student loans is 3.8 percent. A student does not need to pay pack his student loan until after he graduates. Even then, most loans will not enter into repayment status until the graduates secures a job that will earn him more than £15,000 a year. Once the loan is in repayment status, it is paid back through the Income-Contingent Repayment (ICR), a government-run organization, or, if it is a private lender, directly to the lender, usually on a monthly basis. If you decide to look into a private student loan, be sure you understand the repayment time line, as it may vary from the government's advertised policy.
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Resources
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