Are you planning to peruse higher education but you are not sure whether you can afford it or not, you may be able to borrow money to help pay for university or college tuition fees and to help with living costs. Apply to Student Finance in the UK for a loan to cover tuition fees (paid directly to the university) and maintenance costs (paid directly into your bank account at the start of term). This is available wherever you choose to study in the UK, and is repayable. You don’t need to have a confirmed offer of a place at university to start the process.
loans are available for each year of your studies to help with these costs.
The maximum amount you can claim or borrow depends mainly on:
- Which UK country you’re from
- Your household income (for grants)
- Where you’ll be living during your studies
There are two types of student loans:
Tuition Fee Loan
This part of the loan is designed to cover your fee costs. You can borrow up to £9,250 a year (or however much your fees are).
This part is designed to cover the cost of accommodation and living costs. You’ll start repaying the maintenance loans once you’re earning more than £21,000 per year a la tuition fee loan repayments.
How much you’ll receive will depend on your household income – the less this is, the more loan you’re entitled to. If your annual household income is £25,000 or less, you can receive the maximum amount of £8,200 (if you’re studying in London, this increases to £10,702). How much you’re eligible for decreases as your annual household income increases. The maintenance loan replaces previous grants which were available.
Maintenance Grant and Special Support Grant
These grants are to help with your living costs the major difference her is that You do not need to pay them back, you can get either the Maintenance Grant or the Special Support Grant, not both.
The Maintenance Grant is based on your household income. If it’s £41,065 or less, you’ll be eligible to receive all or some of the support.
The Special Support Grant is based on your eligibility for income support or other means-tested benefits such as Housing Benefit. For example, if:
You’re A Single Parent
your partner is a student and one or both of you are responsible for a child or young person under 20 who is in full-time non-advanced education
You Have Certain Disabilities
With the Special Support Grant (unlike the Maintenance Grant) we will not reduce how much you get for your Maintenance Loan. Additionally, it does not count as income when working out income related benefits or tax credits.
How To Apply For A Student Loan
It can take up to six weeks to process student finance applications. Make sure you apply early – even if you have a conditional offer – as you can amend or cancel your application if your plans change.
New Students From England
Most full-time and part-time students can apply online to Student Finance England.
- Set up a student finance online account.
- Log in and complete the online application.
- Include details of your household income and get your parents (or partner) to support your application, if needed.
- Send in proof of identity, if needed.
- Sign and return the loan declaration, which you should receive within 6 weeks.
If you can’t apply online, use the form finder to get the forms you need. You can call Student Finance England if you want to apply online but you can’t use a computer without help.
Continuing Students from England
You’re a ‘continuing student’ if you got finance last year. Log in to your student finance account and apply online
What is the rate of interest on the loan?
While students are studying, the rate of interest on loans is the rate of inflation (using the Retail Prices Index) plus 3%.
When graduates are earning £21,000 or less, the rate of interest is the rate of inflation.
This rises to the rate of inflation – plus up to 3% – when they earn between £21,000; and then the rate of inflation – plus 3% – when they go above earnings of £41,000.