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Student Loans

Studying in further education isn't cheap and for many people the cost is prohibitive. The government have always tried to ensure that those without the funding for university can benefit from the Student Loans scheme which was created to help students with their living costs while studying.

To apply for a student loan, you need to contact your local student loan award authority, who will handle the initial part of your application.

You will be means-tested and eligibility-tested to ensure that you qualify for a student loan. Assuming you qualify, the Student Loans Company (SLC) will contact you and arrange the next step in your loan application. Both the amount of fees you will have to pay and the amount of student loan you will be entitled to are assessed by your local education authority (LEA) - or the student awards agency in Scotland - and are based principally on your parents' income. Exceptions are if you are married, over 25, have been supporting yourself for at least three years, are an orphan, or are in care.

The LEA will inform you of the amount you are expected to contribute towards your fees and will pay the balance straight to the university. In the academic year 2002-2003, for example, students were expected to contribute a maximum of £1,100 towards tuition fees - a quarter of the £4,400 one year of academic study is estimated to cost. Once it has decided how much loan you are entitled to, the LEA will inform the government-owned Student Loans Company, which issues the cheques.

The amount of funding you actually receive depends on which year you are in and where you live. You are automatically entitled to 75% of the loan limit but the rest is means tested according to your parent’s income. If your parents' combined income is less than £20,480, your LEA will pay the whole amount of your fees. You should also then be entitled to the full student loan.
If your parents earn up to £30,501, they will be expected to pay something towards your tuition fees, but not the full whack. Anything over that and you are unlikely to receive assistance. Unless you have brothers or sisters at university, you will be expected to pay the full £1,100 tuition fees and will probably be entitled to only 75% of the full loan entitlement.

Interest on your student loan is charged monthly and is based on the rate of inflation, calculated daily from the start date of your loan.

The Student Loans Company have guidelines as to the specifics of how and when you will be required to pay back your student loan once your education has been completed and you enter into employment.