Student Finance

College can be an expensive proposition, and the costs are rising each year. To make ends meet, many students apply for financial aid. This aid can come in the form of grants, scholarships, or work-study programs. Unfortunately, some of these opportunities have been repealed due to lack of funding. More and more, students are turning to loans as their primary means to pay for their tuition, supplies, and cost of living.

Students loans are often regarded as a fact of life, particularly for students pursuing graduate or doctorate level college degrees. Student loans are generally easier to obtain than other types of loans. The interest rate on such loans is reasonable, and repayment terms are easy. In fact, students don’t have to start repaying the loans until they’ve graduated and started earning more than £15,000 annually.

Hundreds of thousands of students take out student loans each year in the UK. Those who wish to apply should do so as early as possible, preferably just after they’ve made their course selection. The course will help determine how much financial aid will be forthcoming to the student. Research should be done to choose the right lender for a student loan. Some have higher loan limits than others, but students will want to avoid borrowing too much money.

Student loans come in various forms. Tuition fee loans are not dependant upon the student’s financial circumstances. As their name suggests, these student loans are given out to cover tuition costs. Maintenance loans help cover the student’s cost of living while they attend college. These student loans have a non-financially assessed portion as well as a portion that depends on several financial factors. The student’s place of residence, full-time status, and access to other financial aid are all taken into consideration when calculating a student’s maximum borrowing amount. Part-time students may also be eligible for loans and grants. Further assistance is available for students with disabilities or low incomes. The maximum tuition fee loan amount for the 2008/2009 year was £3,145. The maximum amount for maintenance loans in the same year was £6,475.

Income from student loans can be supplemented by part-time employment or government grants. To maintain a comfortable standard of living, many students look for ways to earn extra money. Bursaries and scholarships from the university can also help students cover their expenses.

Student loan applications are available online or through college offices. Applicants will need to follow the instructions carefully, and will need to compete a new application for each year of their course. Student loan applications also require other documentation that proves the student’s identity and household income. Application procedures vary for returning students and those enrolled in teacher-training courses.

After students have successfully completed their courses, they are required to start repaying their loans beginning in April. 9% of their earnings over £15,000 is the minimum student loan repayment, though they can always pay more to get out of debt faster.