Student Finance - Student Loans
However, you must note that any information provided here on only affects students who have entered higher education after September 1998.
What is a Student Loan?
You must note that although money can be borrowed in each academic year, it must be repaid once you have completed studying in monthly instalments.
Applying for a loan
Who can apply for a Student Loan?
However, if you are completing a course (other than the Postgraduate Certificate in Education) or a Nursing/Midwifery course, you are not eligible for a Student Loan.
If a part-time course is taken up, a loan can only be applied for if the course is at least half of what a normal full-time course would cost. Sometimes it may even be possible to apply for a loan up to £500.
How do I apply for a Student Loan?
Due to the recent policy changes, all eligible students can now claim 75% of their maximum allocation regardless of their parents or their own financial situation. Subject to assessment, the additional 25% will be offered. This is assessed by the LEA (who you send your application to), and then processed by the SLC.
If you want to ensure that your cheque arrives to you at the beginning of October, you should make sure that you return the income assessment forms to the LEA by early May but you should still contact your LEA for confirmation of dates.
Repeat student loans, or new loans for existing students, will be administered through the .
Student Loan Process
- Obtain the assessment forms by contacting your LEA.
- Return the forms to your LEA after completing and ensuring that all relevant questions are answered.
- Your LEA will complete the income assessment and will send you a Financial Notification, which advises you of how much you are entitled to.
- You will receive three copies of the form: one for your records; one for your University; and the final one acts as your .
- After receiving your forms from your LEA, you should complete all relevant parts, and send it back to the SLC.
The form should show the amount that you are borrowing and the number of instalments.
You should note that in any one academic year, you do not have to apply for the maximum allotment, and can apply for any amount up to the maximum allocation. You can first apply for a smaller amount, and then later apply again for a second request.
- After the SLC have processed your application, they will send you the amount you requested in three
instalments but you can also apply for the entire amount in one instalment.
You should fill in all forms as quickly as possible to ensure that you get your cheque at the start of the term. However, do not wait until your exam results, even if you do have any change in circumstances, you can always cancel your loan later.
How much can I apply for?
FACTOR ONE: What is the maximum to which you are entitled?
- Is your University in London?
A higher rate is available to you if you study within the London region.
- Are you living away from home?
If you are living in rented accommodation whether it is on- or off-campus can apply for a higher amount.
- Is this your final year?
In the final year of a course the maximum loan to which you will be entitled is lower, as the loan does not provide support for the summer holiday weeks prior to the next academic year.
- Will you be on a this academic year?
If you are completing two placements, you will still be eligible for a loan entitlement over the period. If you are on a full placement year in your third year, you will not be eligible to apply for a loan.
|Living away from home, studying in London||Maximum||75%|
|Living away from home, studying outside London||Maximum||75%|
|Living at home||Maximum||75%|
You can also apply for a further amount to cover any additional weeks that you partake your course, above the average 30 weeks per term (as well as any short breaks). If you partake in a course that is 45 weeks or longer, you will get an amount that is equivalent to a 52-week loan. The maximum amount that you can be offered per extra week is £86 for London, £65 for elsewhere, and a rate of £45 for living at home.
FACTOR TWO: Are you eligible to the full 100% of your entitlement?
However these figures are only to be used as guidance, and the amount may change if your parents are supporting a number of dependants under the age of 18 or who are in Higher Education.
How are they paid?
Your first cheque (be it your only cheque or one of three) will be paid to your University Finance Office. The rest of the payments will be made straight to your bank or building society account.
In conjunction with the SLC the will collect the repayments. The Inland Revenue will instruct your employers and your payslip will show the deduction.
The table below summarises the amount of monthly repayments that you will be making on various incomes.
|Income each year||Monthly payment|
|Up to £10,000||Nil|
These monthly repayments will continue until the full amount has been paid.
This link to the RPI makes it unlikely for the rates to alter significantly, and this is even true for some students who take up to 10 years to pay off their debt.