Gaining a degree from University is one of the most important steps in any upwardly mobile young person’s life. While there is a strong desire to learn, some prospective students in the United Kingdom have a difficult time raising the funds they need to enroll in the University of their choosing. Two loans are available through the British government’s Student Loans Company (SLC) that can help eligible students to cover their tuition costs, living expenses, or both.
Up to one hundred percent of your tuition can be paid directly to your institution of higher learning via the SLC. The interest rates are set every year according to the interest rate index. The interest rate is generally between three and five percent, fluctuating according to the health of the economy and supply and demand.
This type of loan is awarded for the express purpose of paying your college tuition and can therefore not be used to pay for rent or the other every day living expenses you may need to finance during school.
Students moving to London in order to earn their college degree are also eligible for a loan to pay the lodging, food and the other many expenses that are likely to accrue during the course of your studies. The amount of money that you are eligible to borrow depends on both where and with whom you live. The maximum amount of money you can borrow on a student loan if you live outside of London and away from home is £4,625. If you live in London, that amount increases to £6,475. If you continue to live at home with your parents during the course of your
education, you are eligible for a maximum of £3,580.
Every student is eligible automatically for seventy-five percent of the maximum loan but the remaining twenty-five percent is means tested, which means that it depends on your income, where you live and the bills you are responsible for paying during the course of your education. The loan is typically paid out to students in three installments, which are wired directly to your bank account. The installments are timed to coordinate with the start of each new term.
Loans from the SLC can be repaid after gaining your degree via automatic withdraws from your pay packet. Interest rates vary but are typically lower than with other long-term loans. Gaining a tuition of maintenance loan can be a great way to get through school in a way that allows for focused study and a freedom from undue stress.