Has life unrolled a new chapter of your life, which is ‘University’?

Are you new to terminologies like “student finances” and “student loans”?

And are you worried about how I will repay them in future?

All these questions arise in the mind of students when they think about university admission.

But you don’t have to worry about it, because it’s not a thing to stress about, but you should know how it works.

We are here with a guide that will help solve all your problems regarding this issue. The first and foremost thing is to know how it works, so read below.

How Do Finance And Loans Work For Students In The UK?

Why do we take loans?

So they can help us fulfil our needs for a particular time, right?

That is how student loans work, too; these benefits are specially designed to help students cover their university fees and living costs. The student loans company provide these loans to students through the government. So they can have an education while not worrying about their expenses. But a student should be eligible for these loans.

Most students try to do a part-time job or provide online services like a personal statement writer service or an essay writing service just to earn and pay their fees. This is why government think about this loan system so that students can focus more on their studies.

Moreover, there are two types of student loans; tuition fee loans and maintenance loans.

A tuition fee loan is given to the students to cover the cost of the course while it is paid directly to the university or college. On the other hand, the maintenance loan is provided to the students to cover a student’s living costs and transfer directly to the student’s bank account.

Check If You Are Eligible For A Student Loan Or Not:

Before applying for a loan, you must check whether you are eligible for it.

Therefore, we have listed the main factors to help you tally if you are falling in all criteria.

Firstly, the higher education institution should officially recognise your college and university. Thus inquire if that’s the case or not.

Usually, students who go for their first higher education qualification are only provided with these loans, even if they self-funded their previous course. You can also be eligible for limited funding in specific situations or for a few courses. Thus, do your research well before thinking about where to study.

If you already have a degree, you can still get limited funding in some cases.

If you are applying for a loan, your age should be below 60 for full funding. But if you are 60 or above, you can also be granted limited financing, depending on your circumstances.

Lastly, it depends on your status of nationality and residency. You are eligible if you are a UK national, Irish citizen, typically live in England or have a settled status. Moreover, you may also qualify for full support if you are a family member of a UK national citizen.

Check the above details, tally if you tick all the boxes, and then apply for student loans.

How To Apply For The Loan:

The procedure for applying is not difficult.

You can easily apply for the loan just by sitting anywhere, through the online website.

But keep in mind that you have to provide details of your background and family income. And for that purpose, you can also take help from professional SOP writers to write a document for you.

Moreover, you have to set up a student finance account for this process.

After that, you’ll get a loan declaration form within six weeks from the SLC. You just have to sign it and send it back to them.

Here is a tip, always check the application’s deadline for a student loan because if you get it on time, it will arrive early before your semester or classes starts.

Isn’t this an easy process?

We hope that it will help you. Now, moving forward to some more information about these benefits.

How Much Student Loan Is Provided To A Student?

Different students get different amounts of loans. It just depends on their circumstances.

Mostly, it depends on the yearly fees your college or university charges.

However, if we talk about maintenance loans, a few factors are considered before providing them.

Family conditions and income
Current location of residency
Location of the institute you are going to study in

That’s why it varies from person to person. To remove your stress, we will discuss below how you will you going to pay that back.

How Does A Student Repay That Loan Back?

What if we tell you that you don’t have to pay back that loan immediately after passing out?

Yes, it’s true. Students don’t have you repay the loan until they are employed or start earning. Because the repayment is linked to the income you get. Government fix a rate of loan repayment each year so that a specific amount is deducted from a person’s salary subsequently.

But there are some conditions for it as well.

In 2023, if a person earns under £27,295, then 7.1% of his salary will be deducted. Moreover, if a person is studying and earning £49,130+, then 7.1% of the amount will be subtracted.

If you are employed, then you have to pay this specific rate from your salary. You don’t have to do some part-time work or give extra hours to repay it.

But if you are self-employed or have started your own business, you have to repay this amount when you return your self-assessment tax.

In the case of losing a job, there is good news for you.

You will not be eligible for repayment, and the government will stop collecting it. Thus, you don’t have to worry or stress about it in this case.

What Are Other Options If You Get A Loan And It’s Still Not Sufficient?

If you want to increase your budget or if, in the case of an emergency, the loan is not enough for you.

Then, you can ask the university for a part-time job option. Most universities in the UK give their students the leverage of doing jobs while adjusting their class timings. You can choose from many options to earn while studying. You can become a waiter, retailer, event manager or tutor.

Or even you can do freelance work as an essay writer, report writer or SOP writer and help your uni mates with their assignments while earning some side bucks.

So this is all that you should know about student finances and loans in the United Kingdom. We tried to gather all the main points for your ease. Hopefully, this guide will help you.

Conclusion:

Studying in the UK is also an excellent option for local and international students.

The government took a great initiative by offering this type of help to the students. It not only helps the student to focus on their studies but also gives them the opportunity to learn from the best institutes. And they don’t even have to worry about the expenses as well.

The government seems to know the value of education and educated people in the country. While also caring about their people and their needs.

So if you are someone who is planning to apply for university admission, consider applying for a student loan as well. Or if you are an international student, many scholarships are available too. Therefore, do your research well before planning to study in the UK.

Because your education is an essential key to your career, keep shining.