Student loans
Student loans are there to help you get through university without charging you an exorbitant amount of interest.
- Interest rates are low and rise with inflation
- You only start repaying the loan once you have left university and your income reaches a certain level
- Student loans are available to UK students and normally you need to be aged under 55 and on a full time course
- Part time students may be eligible for a loan of up to £500
- The amount you can borrow depends on where you live and study, your course, study year and parental contribution
How much can you borrow?
Here’s a guide for students in England, Wales and Northern Ireland:
| | Maximum | 75% (non-means tested) | 25% (means tested) | Northern Ireland (means tested) |
|---|
Studying in London
(final year) | £5,050
£4,380 | £3,790
£3,285 | £1,260
£1,095 | £1,354
£1,354 |
Studying elsewhere
(final year) | £4,095
£3,555 | £3,070
£2,665 | £1,025
£890 | £1,354
£1,354 |
Students living at home
(final year) | £3,240
£2,830 | £2,430
£2,125 | £810
£705 | £1,354
£1,354 |
Source: Credit Action
In Scotland, the figures are:
| | Maximum | Income assessed | Non-income assessed |
|---|
Students in hall or lodgings, full year
(final year) | £4,095
£3,555 | £2,175
£2,040 | £1,920
£1,515 |
Students living at home, full year
(final year) | £3,240
£2,830 | £1, 960
£1,855 | £1,280
£975 |
Your parents’ contribution
If your parents earn a certain amount of income, they are expected to contribute to your education. Your Local Education Authority (LEA) assesses your parents’ income, taking into account pension contributions and anything else that is relevant.
If their income is more than £21,475, they are expected to contribute £45 plus £1 for every £9.50 of the total income over the threshold.
For example, if your parents income was £30,000 then they would contribute £45 + (30,000 – 21,475)/9.50, which equals £942.
How to apply for a student loan
Apply for your student loan as early as possible, and within the first four months of your course. Always fill in your LEA form, because if you don’t you might be charged higher tuition fees and it will prevent you from applying for a student loan.
Complete and return your offer immediately, even if it’s conditional. You will then be sent back an Eligibility Notification, which tells you what help you will be given for your tuition fees and what loan you can take.
Your financial form
You will also receive a financial form, which you or your parents need to complete and return as part of your student loan application. Your LEA will then respond with a financial notification, which tells you:
- what your parents are expected to contribute towards your university fees
- the maximum student loan you can take out
The student loan request form is on the back of the financial notification. Complete and return it to ensure your money is in your account before you need it.
You do not have to apply for the full student loan in one go. You can apply for the balance later in the year.
Repaying your student loan
Many graduates leave university with debts in excess of £10,000 and this is likely to increase as the years go on.
You will start repaying your student loan in the April after you graduate and will currently pay back 9% of your income that exceeds £15,000 per annum. Repayments are collected through the tax system and are directly linked to your earnings. The less you earn, the less you pay; the more you earn the more you pay. You can make additional voluntary payments at any time.
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