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Student Loans
Due to the levels of debt the average student has amassed by the time they leave university, it is vital to take advantage of the low interest rates and favourable repayment terms offered by Student Loans; with over £10,000 being spent on a typical degree, a Student Loan makes a large contribution to living expenses and tuition fees. A loan application should be made as soon as a university offer is received and it is advisable to investigate your chosen college's fees and local accommodation costs too.
The size of the loan depends on how your Local Education Authority judges your ability to pay your own way (based on your own financial situation and/or your parent's ability to fund you) as well as where you are studying - students in London receive more due to higher living costs.
For those students over 25 slightly different rules apply, but all applicants will receive at least three quarters of the full loan amount with the payment of the remainder at the LEA's discretion. Once an amount has been decided upon the money will be payed, generally by installment, into the recipient's bank account.
The loan becomes liable for repayment the April following graduation, but only on the proviso that you are earning at least £15,000 annually; if this is the case the monthly payments will be taken from your wages automatically. For those who earn less than this the loan accrues interest (but only at the rate of inflation) until the borrower is able to pay.
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