STARTING university is a milestone for many young people, but the student loan payments that come afterwards can be daunting.
But don’t worry, we’ve broken down everything you need to know about student finance. Here’s the lowdown…
How do you apply for a student loan?
Students can apply online for a loan through the government website.
They can apply up to nine months after the start of the academic year.
Students can set up a student finance account online, often needing to include household income, proof of identity and a loan declaration as part of their application.
It is also possible to fill out finance forms on paper.
Do you need to apply for student finance every year?
Recent changes in the Student Finance process means that continuing students must apply for funding every year.
Now paper applications have been scrapped, students must apply online.
Students can apply for funding via the government website.
When does repayment start?
When a student needs to start paying back their loan – and how much they have to pay – depends on which repayment plan they are on.
Plan One (Loans taken out before September 1, 2012 in England or Wales)
- If a student’s income is more than £17,775, they will start repaying their loan the April after leaving their course.
- The amount they need to pay back will change on April 6 every year.
- Students will stop paying if their income drops below this amount.
Plan Two (Loans taken on or after September 1, 2012)
- If a student’s income is more than £21,000, they will start repaying their loan the April after finishing their course, or, if they are studying part-time, the April four years after the course started.
Repayments are taken out from a person’s salary at the same time as tax.
Students can make voluntary repayments through the Student Loans Company.
But experts have warned graduates could be overpaying their loans by hundreds of pounds without realising if they are caught out by the automated payment system.
What is a maintenance loan?
A maintenance loan is for living costs, but you may have to provide details of your household income on application.
The cash is paid into your bank account at the start of each term.
To find out how much you can borrow, visit the government website.
How much are university tuition fees?
The amount that a student will pay for their university tuition depends on where they study, and what they study.
Tuition fees can start from around £9,000, but can increase to more than £16,000.
According to the Business Insider, the UK’s most expensive university is Regent’s University London, followed by the Royal College of Music and the University of the Arts London.
A student will pay back 9 per cent of their income over the minimum amount of: £17,775 for Plan 1 £21,000 for Plan 2.
Interest starts being added to your loan from when you get your first payment.
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