An Introduction to Applying For Student Loans in UK

UK higher education achieved an 8% profit above expenditure in the 2014-15 fiscal year. You may be the student dreaming big. But higher education comes at a price; a price which can only be taken care of through student loans in UK.

Student loans in UK have become superficially synonymous with higher studies. IFS (Institute for Fiscal Studies) surveys have found out that the general student will be indebted with an average £44,000 from thanks to the new student loan system which was regularized in England since September 2012.

However, most of the comments regarding student loans are hyperbolic, pessimistic and based on calculations which border on the extreme. And with this post, you’ll have a definite and crystal clear idea on how this new system functions, where you stand in it and how to make the best out of it.

Types of Student Loans in UK:

Firstly, you need to comprehend on the new revised student loan system. Being a student in UK, there are two student loan repayment plans.

  • Repayment plan 1- You are entitled to this form repayment if you are
  • A resident of the United Kingdom.
  • A European Union student funded by the United Kingdom.
  • A student who started the course before 1 September 2012 and live in UK or if you are a European Union student funded by UK.

If you fall under this sect of applicants then: –

  • You’ll be liable to repay your loans from the first April since you’ve completed/left the course.
  • You’ll be liable to the repayment procedure only when your income exceeds the normalized current margin of £336 a week/£1457 a month/£17495 a year.
  • You’ll repay 9% of your income above the threshold.

You can debit additional voluntary amounts towards your loan.

  • Repayment Plan 2- You are entitled to this form of payment if you‘ve started any full-time/part-time course on or after 1 September 2012 and if you are a resident of England or Wales or are an EU student funded by England or Wales.

If you fall under this sect then: –

  • In case of full-time students, you’ll only start paying your loans from the first April since you’ve completed/left your course.
  • In case of part-time students, you’ll only start paying your loans from the first April since the completion of the course or 4 years after you’ve started your course irrespective of the fact whether you continue studying.
  • You’ll start repaying only when you’re income exceeds the normalized current margin of £404 per week/£21,000 per year/£1,750 per month.
  • In case you’re income is under £21,000, you won’t be required to make the repayments until your income exceeds the above-mentioned threshold.
  • You’ll repay 9% of your income above the threshold.

You can debit additional voluntary amounts towards your student loans in UK.

Some other facts about availing student loans: –

  • After 30 years the debt will be automatically erased.
  • Full-time students with can earn grants if the pre-tax income of their parents minus pensions is £25,000.
  • Student loans are not mentioned in Credit files.

These are just some of the facts which are compulsory knowledge to have before applying for Student Loans in UK. So educate yourself without further ado!