Student loans and Grants |
The problem with grants is they don’t really cover the living expenses of anyone but a possession-shunning Tibetan monk. The problem with loans is you have to pay them back. The problem with working for money is, well, working.
money for nothing
Wouldn’t it be nice if you could get money for nothing?
It’s not quite as crazy as it sounds. There are various ways of getting money, if not for nothing, then at least for very little.
The problem with sponsorship, scholarships, bursaries and so on however, is that while you get the money for nothing, getting access to it can seem harder than winning a raggedy goldfish at the fair.
Sponsorship, scholarships, and bursaries (sounds like a firm of solicitors) are different ways of putting the fun into funding. Well, okay, ‘fun’ may be pushing it, but at least they take away the 'ing', leaving you with 'fund'...s.
Studying in most of Britain became a whole lot more expensive in 2006, and again in 2012, what with the new, higher tuition fees and the like. But the good news is that, as a result, there's now more cash flying around for students in the form of bursaries.
It’s not quite as crazy as it sounds. There are various ways of getting money, if not for nothing, then at least for very little.
The problem with sponsorship, scholarships, bursaries and so on however, is that while you get the money for nothing, getting access to it can seem harder than winning a raggedy goldfish at the fair.
Sponsorship, scholarships, and bursaries (sounds like a firm of solicitors) are different ways of putting the fun into funding. Well, okay, ‘fun’ may be pushing it, but at least they take away the 'ing', leaving you with 'fund'...s.
Studying in most of Britain became a whole lot more expensive in 2006, and again in 2012, what with the new, higher tuition fees and the like. But the good news is that, as a result, there's now more cash flying around for students in the form of bursaries.
tuition loans
WHO DOES THE FUNDING SYSTEM APPLY TO?
Tasty Tuition Fee loans hang from the money tree on easy to reach branches so that everyone can get to them. These juicy babies cover the £9,250 or so course costs that you’ll pay to deal with all learning related stuff. Scots who study in England can also apply for a tuition loan, but through SAAS. It's free for you lucky sods to study up in Scotland.
Most UK students doing their first degree can get a student loan. In the not-so-distant-past, this was only intended to cover living costs, (or ‘maintenance’ as they call it). Now that tuition fees have gone supersize - more sit-down meal than a light snack. However. you can get loans to cover those as well.
You still get 'maintenance' loans for all those necessary student expenses: hoodies, platefuls of cheese and chips and posters of 'cool' people you've never heard of. People struggling to rub their coins together may also qualify for a grant – that's money you don't have to give back as opposed to a loan which you do.
In effect, the less you earn (or your parents earn) the more money the Government gives you and the less they're willing to lend you. If they're only willing to lend you the money though, they make more available to borrow. To get loans and grants, you need to contact Student Finance England (or the equivalent bodies of Scotland, Wales or Northern Ireland).
Universities also have to give out extra money in the shape of bursaries, which you don't have to pay back. The Government forces all Universities charging the full £9,250 tuition fees have to give certain students a bursary. Sometimes, they'll give a bursary for putting them as your first choice uni or being local or being from a minority or studying a particular course. Like Henry VIII's attitude to his wives, the amount, conditions and availability differ a lot from university to university.
Old school bursaries, which are much like scholarships for especially clever, sporty, special types are still around too, although a lot less people get these in comparison. All this fountainous fund action could leave a student feeling a little giddy - as well as soaked through, but alas it's always worth reminding yourself that, in the case of loans, it probably has to be paid back
In 2012, the whole student funding system got an almighty kick up the posterior. If someone who went to university twenty or even ten years ago starts trying to explain to you how the whole funding system works, tune out for a while. It’s all changed. Forget fixed tuition fees, mortgage-style loans, awards from the LEA – all that stuff and more.
This isn’t a history site – Push is here to tell it like it is. The present picture is complicated enough, without us bringing in a load of stuff that’s no longer relevant – at least not to new students.
The next few sections will guide you, gently, through the perilous waters of the funding system.
In a nutshell if you’re from England, you’ll have to pay some tuition fees – nearly ten thousand pounds a year – to the university. But you’ll also get a loan to cover them, which you’ll repay after you graduate and earn above a certain amount. This means you won’t actually have to pay anything to go to university until after you’ve left.
You’ll also be able to borrow some money (another student loan) to cover your living expenses while you’re studying. This cash is meant to go on your rent, food, travel – you name it – while you’re doing your degree. You’ll also have to repay this after you’ve left university and are, hopefully, getting a regular paycheck.
Apart from the bank of mum and dad, there are a few other ways of getting money – scholarships, old–school bursaries from the university, bank overdrafts and what have you, which Push will also come on to later.
It’s not quite the same all around the country – arrangements for Scotland are a bit different and there are a few tweaks to students in Wales or Northern Ireland. There are also special provisions for other groups, such as those with children and those with disabilities. Push will try to mention these where relevant and there’s also a whole section devoted to how things work for non-English, non-traditional people of all varieties.
Doesn’t sound too difficult, does it? See, we told you we’d take you through it gently.
WILL I GET ANYTHING?
That depends on whether you meet 10 certain conditions:
Tasty Tuition Fee loans hang from the money tree on easy to reach branches so that everyone can get to them. These juicy babies cover the £9,250 or so course costs that you’ll pay to deal with all learning related stuff. Scots who study in England can also apply for a tuition loan, but through SAAS. It's free for you lucky sods to study up in Scotland.
Most UK students doing their first degree can get a student loan. In the not-so-distant-past, this was only intended to cover living costs, (or ‘maintenance’ as they call it). Now that tuition fees have gone supersize - more sit-down meal than a light snack. However. you can get loans to cover those as well.
You still get 'maintenance' loans for all those necessary student expenses: hoodies, platefuls of cheese and chips and posters of 'cool' people you've never heard of. People struggling to rub their coins together may also qualify for a grant – that's money you don't have to give back as opposed to a loan which you do.
In effect, the less you earn (or your parents earn) the more money the Government gives you and the less they're willing to lend you. If they're only willing to lend you the money though, they make more available to borrow. To get loans and grants, you need to contact Student Finance England (or the equivalent bodies of Scotland, Wales or Northern Ireland).
Universities also have to give out extra money in the shape of bursaries, which you don't have to pay back. The Government forces all Universities charging the full £9,250 tuition fees have to give certain students a bursary. Sometimes, they'll give a bursary for putting them as your first choice uni or being local or being from a minority or studying a particular course. Like Henry VIII's attitude to his wives, the amount, conditions and availability differ a lot from university to university.
Old school bursaries, which are much like scholarships for especially clever, sporty, special types are still around too, although a lot less people get these in comparison. All this fountainous fund action could leave a student feeling a little giddy - as well as soaked through, but alas it's always worth reminding yourself that, in the case of loans, it probably has to be paid back
In 2012, the whole student funding system got an almighty kick up the posterior. If someone who went to university twenty or even ten years ago starts trying to explain to you how the whole funding system works, tune out for a while. It’s all changed. Forget fixed tuition fees, mortgage-style loans, awards from the LEA – all that stuff and more.
This isn’t a history site – Push is here to tell it like it is. The present picture is complicated enough, without us bringing in a load of stuff that’s no longer relevant – at least not to new students.
The next few sections will guide you, gently, through the perilous waters of the funding system.
In a nutshell if you’re from England, you’ll have to pay some tuition fees – nearly ten thousand pounds a year – to the university. But you’ll also get a loan to cover them, which you’ll repay after you graduate and earn above a certain amount. This means you won’t actually have to pay anything to go to university until after you’ve left.
You’ll also be able to borrow some money (another student loan) to cover your living expenses while you’re studying. This cash is meant to go on your rent, food, travel – you name it – while you’re doing your degree. You’ll also have to repay this after you’ve left university and are, hopefully, getting a regular paycheck.
Apart from the bank of mum and dad, there are a few other ways of getting money – scholarships, old–school bursaries from the university, bank overdrafts and what have you, which Push will also come on to later.
It’s not quite the same all around the country – arrangements for Scotland are a bit different and there are a few tweaks to students in Wales or Northern Ireland. There are also special provisions for other groups, such as those with children and those with disabilities. Push will try to mention these where relevant and there’s also a whole section devoted to how things work for non-English, non-traditional people of all varieties.
Doesn’t sound too difficult, does it? See, we told you we’d take you through it gently.
WILL I GET ANYTHING?
That depends on whether you meet 10 certain conditions:
1. where you live
You’ve got to be a home student which means you must have been ‘ordinarily resident’ in the British Isles for three years immediately before the start of your course.
You don’t have to worry about going travelling in a gap year or long holidays or even your parents working abroad. It’s the ‘ordinarily resident’ thing that counts.
On top of that, your home should be in England, Wales, Scotland or Northern Ireland on the first day of the academic year in which your course starts. That means 1 September for courses starting in the Autumn term, 1 January for courses starting in the Spring term, 1 April for those starting in the Summer term and 1 July for anything starting during the summer.
You must also have ‘settled status’ – for example, if you were born in the UK (and are therefore considered a British citizen) but have lived abroad for a number of years, they might not count you as a ‘home’ student.
The finer points of the residency thing are complicated and, just to make it harder, some people (e.g. Refugees) may qualify for funding even if they don’t meet all the normal requirements. If in any doubt, have a look at www.dfes.gov.uk/studentsupport or give the SLC a bell and they’ll advise you.
You don’t have to worry about going travelling in a gap year or long holidays or even your parents working abroad. It’s the ‘ordinarily resident’ thing that counts.
On top of that, your home should be in England, Wales, Scotland or Northern Ireland on the first day of the academic year in which your course starts. That means 1 September for courses starting in the Autumn term, 1 January for courses starting in the Spring term, 1 April for those starting in the Summer term and 1 July for anything starting during the summer.
You must also have ‘settled status’ – for example, if you were born in the UK (and are therefore considered a British citizen) but have lived abroad for a number of years, they might not count you as a ‘home’ student.
The finer points of the residency thing are complicated and, just to make it harder, some people (e.g. Refugees) may qualify for funding even if they don’t meet all the normal requirements. If in any doubt, have a look at www.dfes.gov.uk/studentsupport or give the SLC a bell and they’ll advise you.
2. Whether you’ve studied before
First undergraduate or masters degree? Then you're in luck. Worry not, move along. Not your first rodeo, however? Chances are you're not going to get any (or anywhere near as much) government funding as your first time around. For specifics on your situation, contact Student Finance England.
3. What you study
Local Authorities only have to fund students to do certain types of courses. That includes all first degrees and quite a lot else, but certain art, drama and dance students ought to read the small print in particular and, again, if in doubt, give SFE or the college running the course a call.
Anyway, the courses SFE will fork out for are:
Anyway, the courses SFE will fork out for are:
- Full-time first degrees (eg. BA, BSc or BEd), including sandwich courses
- In particular cases, part-time courses of initial teacher training
- A Foundation Degree
- A Diploma of Higher Education (DipHE)
- A Higher National Diploma (HND)
- A Higher National Certificate (HNC)
- Part-time courses (except the Open University PGCE) which are at least one year (and don’t take more than twice as long as doing the course full-time)
- A Postgraduate Certificate of Education (PGCE) or other postgrad initial teacher training course which qualifies you as a teacher. Also, various other qualifications that qualify you as a teacher such as a level 4 NVQ if you take it at the same time as a first degree, a DipHE or an HND. Some teacher training courses also get extra money, not necessarily from the LEA – but more about that later
- A course which prepares for a professional examination higher than A level, Scottish Higher, National Certificate or National Diploma
- A foundation year which forms part of one of the courses listed above.
4. WHERE YOU STUDY
It’s not just what course you study, but where you study it.
It has to be a publicly-funded UK university or college (i.e. not the University of Buckingham). Or a group of schools that’s taking part in the School Centred Initial Teacher Training (SCITT) scheme. If it doesn’t fall into any of these categories, you’ll almost certainly have to dig deep.
Students studying some courses at private institutions might still get a partial tuition fee loan, but will have to make up the rest of the fees themselves – and private institutions can charge the moon on a stick, with a flake in it if they so desire.
Studying in London can also be a sticky financial wicket, compared to other areas of the UK the London cost of living is nearly double. As a result students who are planning on spending their uni years in the Big Smoke do get slightly beefier loans. Depending on parental income you could be in line for a loan of £6,692-£11,000.
It has to be a publicly-funded UK university or college (i.e. not the University of Buckingham). Or a group of schools that’s taking part in the School Centred Initial Teacher Training (SCITT) scheme. If it doesn’t fall into any of these categories, you’ll almost certainly have to dig deep.
Students studying some courses at private institutions might still get a partial tuition fee loan, but will have to make up the rest of the fees themselves – and private institutions can charge the moon on a stick, with a flake in it if they so desire.
Studying in London can also be a sticky financial wicket, compared to other areas of the UK the London cost of living is nearly double. As a result students who are planning on spending their uni years in the Big Smoke do get slightly beefier loans. Depending on parental income you could be in line for a loan of £6,692-£11,000.
5. YOUR AGE
No club 18-30 restrictions here (though maybe you'd rather be embargoed from the drunken relays and the whipped cream-themed 'entertainment'). The only bit of the support package where age comes into play is the maintenance loan, for which you need to be younger than 60 at the start of your course.
Otherwise, the only difference age makes is how likely you are still to be depending on your folks for your upkeep. Once you’re not, SFE checks out your own income (or even your husband’s or wife’s) instead of theirs, but if that’s likely to be lower, then it might work out in your favour and qualify you for a grant.
Otherwise, the only difference age makes is how likely you are still to be depending on your folks for your upkeep. Once you’re not, SFE checks out your own income (or even your husband’s or wife’s) instead of theirs, but if that’s likely to be lower, then it might work out in your favour and qualify you for a grant.
6. Which year of your course you’re in
Grizzled, war-hardened final year students might find it unfair, but students in their first and second years of studying usually get more in terms of maintenance loans when payday rolls around.
This isn't just to watch you all suffer more – logic is that in your first and second year, you've just studying to do, books to buy and clubs to be drinking in over the summer, but by the time you reach June of third year, you're pretty much free and no longer need their support.
How wrong they may be. Sadly, that's the way the cookie crumbles.
This isn't just to watch you all suffer more – logic is that in your first and second year, you've just studying to do, books to buy and clubs to be drinking in over the summer, but by the time you reach June of third year, you're pretty much free and no longer need their support.
How wrong they may be. Sadly, that's the way the cookie crumbles.
7. How much you and your family are expected to contribute
We know it's not always the case, but in the eyes of your LEA, rich parents = loads of financial support for you. And vice versa.
If your parents' income looks pretty decent on paper, but there are extenuating circumstances which mean they really can't help you out, though they'd love to, get on the phone to Student Finance and see if there's anything they can do,
If your parents' income looks pretty decent on paper, but there are extenuating circumstances which mean they really can't help you out, though they'd love to, get on the phone to Student Finance and see if there's anything they can do,
8.The length of your course and academic year
Depending on how many years your course lasts for, and what year of study you're entering into, you may be eligible for less (or more) than a standard 3 year degree taken chronologically. For more info, look on your chosen institution's course and fee page, or contact Student Finance.
9.Whether you get a grant
Grants are non-repayable (yay) but they may impact the amount of loan you get, rather than just being popped on the top like the maraschino cherry on a banana split. Make sure you know what potential impact it may have, and budget accordingly.
10.How much money you or your family have already
LEAs all work to the same rules when deciding who to help and by how much.
You don’t have to tell them how much your parents earn if you don’t want to. In this case, you’ll only get the bits of support that go to the richest students – i.e. you’ll scupper your chances of getting a grant, the full living costs loan and probably also the extra help that universities give to the poorest students. And if you’re certain the folks are so flush there’s no way you’ll get any more than the basic help, then there’s probably no need to send in the extra bits of paper. If, however, you’re in any doubt, particularly if you have lots of brothers and sisters or the other things that complicate what’s counted as income, then it doesn’t hurt to send the finance people everything they ask for. Hell, there could be more money in it for you.
There’s a standard application form which asks you, among other things, all about your parents’ salaries. Even if you’re earning, unless you’re an ‘independent student’, they’re not generally worried about your own income.
From what you tell them on the form, the LEA works out your parents’ residual income – in other words, what they have left after various allowances such as pension payments.
Here are a few factors that fudge those figures:
-Brothers and sisters
-Changes in circumstances
-Divorce
-Independent students
-Married students
You don’t have to tell them how much your parents earn if you don’t want to. In this case, you’ll only get the bits of support that go to the richest students – i.e. you’ll scupper your chances of getting a grant, the full living costs loan and probably also the extra help that universities give to the poorest students. And if you’re certain the folks are so flush there’s no way you’ll get any more than the basic help, then there’s probably no need to send in the extra bits of paper. If, however, you’re in any doubt, particularly if you have lots of brothers and sisters or the other things that complicate what’s counted as income, then it doesn’t hurt to send the finance people everything they ask for. Hell, there could be more money in it for you.
There’s a standard application form which asks you, among other things, all about your parents’ salaries. Even if you’re earning, unless you’re an ‘independent student’, they’re not generally worried about your own income.
From what you tell them on the form, the LEA works out your parents’ residual income – in other words, what they have left after various allowances such as pension payments.
Here are a few factors that fudge those figures:
-Brothers and sisters
-Changes in circumstances
-Divorce
-Independent students
-Married students
WHERE DO I APPLY FOR FUNDING?
It was the case that wherever you wanted to study, whether it was Aston or Aberystwyth or Aberdeen, your funding was dealt with by the authorities in the place where you already lived.
But that's ancient history, old news...well at least it is for some (more on that later). If you're starting a course in 2018/19 there's no more faffing for funds with your local authorities, the application is now taken care of by Student Finance England. It can be done online or by completing a paper form, whichever dunks your biscuit really. Check with www.studentfinancedirect.co.uk for more info.
Of course it would be far too simple to hope for one great big, shiny, happy, universal system. Local Authorities, or Local Education Authorities - or LEAs - were the guys responsible for handling the whole finance shebang for undergraduate degrees and you will have to deal with them if you're not in England.
In Scotland, it’s a body called the Student Awards Agency for Scotland (SAAS – www.saas.gov.uk). People from Wales can track down their LEA at www.studentfinancewales.co.uk. And in Northern Ireland, it’s the Education and Library Boards (listings at www.studentfinanceni.co.uk).
To make things easier (and, let’s face it, it could do with it), we’ll just call them all LEAs, okay?
So if you are dealing with an LEA (or things very much like them), they'll do an Income Assessment for each student to tot up who gets what and then they pay it out.
The relevant authority for you is the one that’s in charge of education for the area where you normally live before you start your course. If you’re in doubt about who to call, try asking your school, college, local library or local council. And don’t forget to do it or else you could end up paying for it all yourself.
HOW DO I APPLY?
If you're applying for student funding there are two possibilities: old-fashioned application on paper (possibly filled out with an inkwell and quill) or the whizzy online application at www.studentfinancedirect.co.uk. There are also lots of extras there, such as a handy calculator to work out how much you’ll be entitled to.
Below, is Push’s handy guide to what to do and when, but the general rule is annoyingly trite: ‘Don’t delay, do it today’. (You can hate the slogan, but the sentiment’s sound.) This guide is based on old-fashioned, paper-based applications. The basic application process on the website is roughly the same and it includes any specific instructions you need.
STEP 1: Getting started
What to do:
If you fancy the online route, then register at www.studentfinancedirect.co.uk. Otherwise, contact your LEA for an application form (PN1) if they haven’t already sent you one or download it from www.studentfinancedirect.co.uk.
When to do it:
If you haven’t got a form by March of the year when you want to start you course (i.e. year 13), get one. In fact, you might as well look into it sooner or, at least, as soon as possible after applying for your course. You shouldn’t wait till you’ve had your place confirmed or even until you get an offer.
Why do it?
You need to fill in the form or supply your details on the website so they can assess your financial situation. There’s a separate, optional section to fill out if you want to apply for loans.
Anything else?
Remember, your LEA is the one for where you live, not where you’ll be studying. Your school, college, local library or local council can help you find the contact details if necessary or they may even be able to give you the form themselves.
STEP 2: The LEA checks your eligibility and works out how much cash to give you
STEP 3: Apply for loans
What to do:
Fill out the loan request form at the end of the PN1 form or on www.studentfinancedirect.co.uk. There are two separate boxes to tick – one for the tuition fee loan (which will go straight to the uni to save you from having to pay fees until after you graduate) and one for the maintenance loan (which goes into your bank account at the start of term to give you some cash to live on).
When to do it:
At the same time you fill out PN1 – see Step 2 for details of the deadlines.
Why do it?
To get a student loan, which is likely to be your main source of student income and is probably worth applying for even if you think you’re too minted to need it. This part of the form is very short, so there’s no excuse for leaving it out.
Anything else?
You can choose whether you want to apply for the maximum loan allowed to you or specify a (lower) amount. You could ask for a higher amount, but there’s little point as you’re not going to get it. Push recommends just ticking the box to ask for the maximum amount as you never know when the cash is going to come in handy.
You’ll need to supply your bank details, so they know where to pay the money to, and your National Insurance number, so they know who to get it back from once you start earning.
If all goes to plan, you should get a letter showing the amount of support you’ll get about six to eight weeks after you returned the form.
What if I'm not satisfied?
Good question. What if the LEA takes forever, turns you down for cash unfairly or palms you off with less than you reckon you deserve?
LEAs do cock up from time to time. It’s only natural. Forms fall down the backs of radiators or the LEA reads one too many noughts in somebody’s salary. There’s no need to panic or give them a hard time about it though, start off with a simple polite phone call. That’s usually enough to sort it out.
But if it isn’t, get the name of someone at the LEA to whom you can complain and put it in writing, stating clearly why you think you’ve had a bad deal and tell them you’re giving them, say, 21 days to respond. Wait 21 days and then phone again if you haven’t heard. Be polite, but be firm.
It’s also possible the LEA will be nice as pie and deal with your case more efficiently than you thought possible, but makes a decision about your case that just doesn’t seem fair. Many things that don’t seem fair are in fact perfectly legitimate, but you may occasionally have grounds to seek a second opinion – ask the LEA for their advice and for details of any appeals procedure.
Once you’re at university or have even been offered a place, if you’re having problems with your LEA you can get help from the university’s students’ union. (Phone the university and just ask to be put through to the students’ union welfare department or advice centre.)
Alternatively, most universities and colleges have student funding and/or welfare departments too. Either that department or the students’ union will usually take up your case with the LEA and answer any questions you’ve got about what might have gone wrong and how to fix it.
Don’t jump straight to conclusions about it all having gone pear-shaped. It’s a pear-shaped system and confusion is pretty much par for the course. Rather than rushing in to complain, always feel free to phone the LEA to ask questions or just to check on progress.
In fact, call the LEA about anything you like – how to fill in the forms, whether you’re likely to be eligible, how to remove egg stains from a silk blouse – okay, maybe not about the stains, but they’re there to help and they should treat everyone as an individual case.
It was the case that wherever you wanted to study, whether it was Aston or Aberystwyth or Aberdeen, your funding was dealt with by the authorities in the place where you already lived.
But that's ancient history, old news...well at least it is for some (more on that later). If you're starting a course in 2018/19 there's no more faffing for funds with your local authorities, the application is now taken care of by Student Finance England. It can be done online or by completing a paper form, whichever dunks your biscuit really. Check with www.studentfinancedirect.co.uk for more info.
Of course it would be far too simple to hope for one great big, shiny, happy, universal system. Local Authorities, or Local Education Authorities - or LEAs - were the guys responsible for handling the whole finance shebang for undergraduate degrees and you will have to deal with them if you're not in England.
In Scotland, it’s a body called the Student Awards Agency for Scotland (SAAS – www.saas.gov.uk). People from Wales can track down their LEA at www.studentfinancewales.co.uk. And in Northern Ireland, it’s the Education and Library Boards (listings at www.studentfinanceni.co.uk).
To make things easier (and, let’s face it, it could do with it), we’ll just call them all LEAs, okay?
So if you are dealing with an LEA (or things very much like them), they'll do an Income Assessment for each student to tot up who gets what and then they pay it out.
The relevant authority for you is the one that’s in charge of education for the area where you normally live before you start your course. If you’re in doubt about who to call, try asking your school, college, local library or local council. And don’t forget to do it or else you could end up paying for it all yourself.
HOW DO I APPLY?
If you're applying for student funding there are two possibilities: old-fashioned application on paper (possibly filled out with an inkwell and quill) or the whizzy online application at www.studentfinancedirect.co.uk. There are also lots of extras there, such as a handy calculator to work out how much you’ll be entitled to.
Below, is Push’s handy guide to what to do and when, but the general rule is annoyingly trite: ‘Don’t delay, do it today’. (You can hate the slogan, but the sentiment’s sound.) This guide is based on old-fashioned, paper-based applications. The basic application process on the website is roughly the same and it includes any specific instructions you need.
STEP 1: Getting started
What to do:
If you fancy the online route, then register at www.studentfinancedirect.co.uk. Otherwise, contact your LEA for an application form (PN1) if they haven’t already sent you one or download it from www.studentfinancedirect.co.uk.
When to do it:
If you haven’t got a form by March of the year when you want to start you course (i.e. year 13), get one. In fact, you might as well look into it sooner or, at least, as soon as possible after applying for your course. You shouldn’t wait till you’ve had your place confirmed or even until you get an offer.
Why do it?
You need to fill in the form or supply your details on the website so they can assess your financial situation. There’s a separate, optional section to fill out if you want to apply for loans.
Anything else?
Remember, your LEA is the one for where you live, not where you’ll be studying. Your school, college, local library or local council can help you find the contact details if necessary or they may even be able to give you the form themselves.
STEP 2: The LEA checks your eligibility and works out how much cash to give you
STEP 3: Apply for loans
What to do:
Fill out the loan request form at the end of the PN1 form or on www.studentfinancedirect.co.uk. There are two separate boxes to tick – one for the tuition fee loan (which will go straight to the uni to save you from having to pay fees until after you graduate) and one for the maintenance loan (which goes into your bank account at the start of term to give you some cash to live on).
When to do it:
At the same time you fill out PN1 – see Step 2 for details of the deadlines.
Why do it?
To get a student loan, which is likely to be your main source of student income and is probably worth applying for even if you think you’re too minted to need it. This part of the form is very short, so there’s no excuse for leaving it out.
Anything else?
You can choose whether you want to apply for the maximum loan allowed to you or specify a (lower) amount. You could ask for a higher amount, but there’s little point as you’re not going to get it. Push recommends just ticking the box to ask for the maximum amount as you never know when the cash is going to come in handy.
You’ll need to supply your bank details, so they know where to pay the money to, and your National Insurance number, so they know who to get it back from once you start earning.
If all goes to plan, you should get a letter showing the amount of support you’ll get about six to eight weeks after you returned the form.
What if I'm not satisfied?
Good question. What if the LEA takes forever, turns you down for cash unfairly or palms you off with less than you reckon you deserve?
LEAs do cock up from time to time. It’s only natural. Forms fall down the backs of radiators or the LEA reads one too many noughts in somebody’s salary. There’s no need to panic or give them a hard time about it though, start off with a simple polite phone call. That’s usually enough to sort it out.
But if it isn’t, get the name of someone at the LEA to whom you can complain and put it in writing, stating clearly why you think you’ve had a bad deal and tell them you’re giving them, say, 21 days to respond. Wait 21 days and then phone again if you haven’t heard. Be polite, but be firm.
It’s also possible the LEA will be nice as pie and deal with your case more efficiently than you thought possible, but makes a decision about your case that just doesn’t seem fair. Many things that don’t seem fair are in fact perfectly legitimate, but you may occasionally have grounds to seek a second opinion – ask the LEA for their advice and for details of any appeals procedure.
Once you’re at university or have even been offered a place, if you’re having problems with your LEA you can get help from the university’s students’ union. (Phone the university and just ask to be put through to the students’ union welfare department or advice centre.)
Alternatively, most universities and colleges have student funding and/or welfare departments too. Either that department or the students’ union will usually take up your case with the LEA and answer any questions you’ve got about what might have gone wrong and how to fix it.
Don’t jump straight to conclusions about it all having gone pear-shaped. It’s a pear-shaped system and confusion is pretty much par for the course. Rather than rushing in to complain, always feel free to phone the LEA to ask questions or just to check on progress.
In fact, call the LEA about anything you like – how to fill in the forms, whether you’re likely to be eligible, how to remove egg stains from a silk blouse – okay, maybe not about the stains, but they’re there to help and they should treat everyone as an individual case.
TUition loans - fuqs
Frequently Unasked Questions
If I have my own savings, will I have to declare them?
If you want to apply for the means-tested elements of support, you’ll have to estimate your gross taxable income for the year to come. This income includes all money you earn or receive that you pay tax on, except for any part-time or holiday jobs you do during your course. There are a few other sources they won’t worry about either – the forms make it pretty clear and, if you’re still not sure, ask.
If you have savings and investments and don’t expect to earn more than your personal allowance in the tax year (currently £11,500 which doesn’t include any loans, grants or bursaries), arrange for your interest to be paid without tax being deducted. Then you won’t have to claim it back.
What courses don’t get any financial help? Basically everyone gets one chance to take an undergraduate and masters degree or equivalent qualification, but only one. That means that students don’t normally get Government funding for any of the following, although there’s often another source you can try:
What if I don’t live in the UK?
Then it depends where you do live. If you normally live in any EU country other than the UK, you should be able to get help with your tuition fees, but won’t get help with your living expenses. It’s down to individual circumstances, though. (See www.ukcisa.org.uk for more details.)
There may also be some help available from the authorities in your home country, though Push can’t promise anything.
And what if I don’t live in the EU?
In this case, you’re an international student (aka ‘overseas student’) and you’re going to have to fund your course costs all by yourself or apply in your own country for whatever educational funding may be available. What’s more, you’re going to have to pay the full cost of your course (starting from around £9,000 a year).
What if I drop out and want to get back in?
Sometimes students avoid flunking altogether by repeating a year or dropping out of one university and starting again somewhere else.
Most LEAs won’t support you financially for a repeated year, especially not if they reckon it’s your fault. Reasons for it being considered ‘your fault’ might include not liking the university you chose, hitting the financial rocks or getting drunk and missing all your lectures.
They might be more lenient if you’re sick (and no, not drink-induced sick.) The policy on all this varies from one LEA to another, however, so if it looks like you may have to flunk, first check out how they’ll react and, if it’s likely to be a no-no, try to hang in there.
If you do want to repeat a year, you’ll probably have to pay tuition fees for the time you’re repeating and it may be the whole whack (the same as an international student). You might well get an extra year’s student loan though – for all the good that’ll do you.
The message is: choose your university carefully in the first place and don’t screw up when you get there by either not budgeting your money or by being a complete dosser. So long as you do that, no one can blame you and you’ll avoid the worst of the financial rough justice for flunking.
Still confused? Fair enough.
Read the DfES booklet ‘Guide to Financial Support for Higher Education Students’. It’s available online (www.studentfinancedirect.co.uk) or call their information line on 0800 731 9133 for a copy. It’s free.
Unfortunately, it’ll make even less sense than this.
So try completing as much of the application forms as you can, asking for help as you go along whenever you need to.
For general questions about finance and applying, call the Student Loans Company’s Customer Support Office on 08456 077577. For more detailed questions about your entitlement to help, try the DfES helpline on (01325) 392822. Or just ring your LEA.
Alternatively, you can send instant messages to an advisor online at www.studentfinancedirect.co.uk. Not unlike chatting to your mates on WhatsApp, but probably without as many emoticons.
So long as you get the money, no one complains and you don’t lie on the forms, it doesn’t matter if the detail is clear as .
There’s a veritable library of suggested reading and recommended websites near the back of the book.
If I have my own savings, will I have to declare them?
If you want to apply for the means-tested elements of support, you’ll have to estimate your gross taxable income for the year to come. This income includes all money you earn or receive that you pay tax on, except for any part-time or holiday jobs you do during your course. There are a few other sources they won’t worry about either – the forms make it pretty clear and, if you’re still not sure, ask.
If you have savings and investments and don’t expect to earn more than your personal allowance in the tax year (currently £11,500 which doesn’t include any loans, grants or bursaries), arrange for your interest to be paid without tax being deducted. Then you won’t have to claim it back.
What courses don’t get any financial help? Basically everyone gets one chance to take an undergraduate and masters degree or equivalent qualification, but only one. That means that students don’t normally get Government funding for any of the following, although there’s often another source you can try:
- Further education courses like A Levels, AS Levels, Scottish Highers, NVQs, GNVQs, most BTEC courses, City & Guilds and so on. Funding for these is a whole different system – talk to the LEA.
- Access or conversion courses which prepare students to take a higher education course.
What if I don’t live in the UK?
Then it depends where you do live. If you normally live in any EU country other than the UK, you should be able to get help with your tuition fees, but won’t get help with your living expenses. It’s down to individual circumstances, though. (See www.ukcisa.org.uk for more details.)
There may also be some help available from the authorities in your home country, though Push can’t promise anything.
And what if I don’t live in the EU?
In this case, you’re an international student (aka ‘overseas student’) and you’re going to have to fund your course costs all by yourself or apply in your own country for whatever educational funding may be available. What’s more, you’re going to have to pay the full cost of your course (starting from around £9,000 a year).
What if I drop out and want to get back in?
Sometimes students avoid flunking altogether by repeating a year or dropping out of one university and starting again somewhere else.
Most LEAs won’t support you financially for a repeated year, especially not if they reckon it’s your fault. Reasons for it being considered ‘your fault’ might include not liking the university you chose, hitting the financial rocks or getting drunk and missing all your lectures.
They might be more lenient if you’re sick (and no, not drink-induced sick.) The policy on all this varies from one LEA to another, however, so if it looks like you may have to flunk, first check out how they’ll react and, if it’s likely to be a no-no, try to hang in there.
If you do want to repeat a year, you’ll probably have to pay tuition fees for the time you’re repeating and it may be the whole whack (the same as an international student). You might well get an extra year’s student loan though – for all the good that’ll do you.
The message is: choose your university carefully in the first place and don’t screw up when you get there by either not budgeting your money or by being a complete dosser. So long as you do that, no one can blame you and you’ll avoid the worst of the financial rough justice for flunking.
Still confused? Fair enough.
Read the DfES booklet ‘Guide to Financial Support for Higher Education Students’. It’s available online (www.studentfinancedirect.co.uk) or call their information line on 0800 731 9133 for a copy. It’s free.
Unfortunately, it’ll make even less sense than this.
So try completing as much of the application forms as you can, asking for help as you go along whenever you need to.
For general questions about finance and applying, call the Student Loans Company’s Customer Support Office on 08456 077577. For more detailed questions about your entitlement to help, try the DfES helpline on (01325) 392822. Or just ring your LEA.
Alternatively, you can send instant messages to an advisor online at www.studentfinancedirect.co.uk. Not unlike chatting to your mates on WhatsApp, but probably without as many emoticons.
So long as you get the money, no one complains and you don’t lie on the forms, it doesn’t matter if the detail is clear as .
There’s a veritable library of suggested reading and recommended websites near the back of the book.
study loans
The Government-funded student loans available from the SLC are most students’ main source of income to cover the costs of living – somewhere to live, something to eat, something to wear, books, travel, beer money and maybe the odd matchbox Ferrari from any left-overs.
It’s only ‘income’ in the sense of being money available to students but, because, of course, they have to pay it back eventually, it's not the same as earning an income or wage.
Students don’t have to apply for student loans – but if you're in any doubt that you will manage to survive without it, then get it. Unless you're rich, it’s not possible to get through uni without the loan.
And it’s not even worth it. Even if you do have more money than all the oil sultans of Saudi Arabia, you should still try to get a loan because they’re the best official way of borrowing money that you’re ever likely to get. If you don’t need it, dump it into a high yield account and earn more interest on it then the low inflation-tied pay back rate.
Should be worth several hundred quid over the years.
For most students, that option is as realistic as Z-lister Big Brother contestants' hopes of making it big in the entertainment industry. Student loans are an inevitable necessity rather than a fall-back option. They’re what you’ve got to live on.
It’s only ‘income’ in the sense of being money available to students but, because, of course, they have to pay it back eventually, it's not the same as earning an income or wage.
Students don’t have to apply for student loans – but if you're in any doubt that you will manage to survive without it, then get it. Unless you're rich, it’s not possible to get through uni without the loan.
And it’s not even worth it. Even if you do have more money than all the oil sultans of Saudi Arabia, you should still try to get a loan because they’re the best official way of borrowing money that you’re ever likely to get. If you don’t need it, dump it into a high yield account and earn more interest on it then the low inflation-tied pay back rate.
Should be worth several hundred quid over the years.
For most students, that option is as realistic as Z-lister Big Brother contestants' hopes of making it big in the entertainment industry. Student loans are an inevitable necessity rather than a fall-back option. They’re what you’ve got to live on.
grants and loans for living costs
Maintenance loans are designed to cover your living costs and, if you jump through all the hoops and don’t make a mess of the form, you could get over £10k per year of study.
The amount changes every year but as a general rule if you’re hitting the capital, you’ll get an extra £2,000 or so to keep you afloat in the city's bright lights and if you're opting to live at home, you'll get a bit less. Based on the assumption that Hotel Ma 'n' Pa are less likely to charge their munchkins for water, electricity and rent and give them free reign of the fridge too.
Final year students also get less wonga, given that the Student Loans Company (SLC), the Government, your uni and anyone else of an annoyingly grown-up persuasion, expects you to get off your sorry behind and find a job.
Luckily final year revision and essay stress means more nights in front of the computer and less evenings out on the razz, which helps save a buck or two anyway.
75% of the maintenance loan isn't ‘means-tested’. In other words, you can get it pretty much regardless of who you are, whatever your folks earn, and whatever the SLC decided about giving you an award. There are conditions and rules and all sorts of red tape to go through, but most students will get a basic rate of approximately £4,000 per year of study.
The other 25% 'is income assessed' - assessing various factors like what your parents earn.
WHO CAN GET A GRANT?
For every pound of grant you get, your loan is reduced by a pound accordingly, up to a certain amount. So if you get a £600 grant, your loan will be £600 lower than if you got no grant. The loan won’t be reduced by more than the upper limit, however, even if you get a grant that’s bigger than that.
Whichever way you look at it, getting a grant won’t stop you from getting the same amount as your full loan entitlement. Depending on the size of your grant, you may end up getting more. And as the grant part of it won’t have to be repaid, ever, you’re on to a winner.
There’s one exception – just to prove the rule. The special support grant (like the maintenance grant, but for some students with kids or disabilities) doesn’t affect how much loan you get.
HOW MUCH MIGHT THEY GIVE ME?
Every year, the Government bumps up the maximum available loan – good news as far as having access to cash is concerned, but not so good given that it means students’ debts are snowballing every year.
Given the current economic doom and gloom - food prices, petrol, transport - on the up, it's no surprise that the loan increases are speeding up too - life is pretty darned expensive these days.
Currently, the most anyone can borrow in a year is £11,000, but most students can’t get anything like that much. It all depends various factors.
HOW DO I APPLY?
If you're applying for student funding there are two possibilities: old-fashioned application on paper (possibly filled out with an inkwell and quill) or the whizzy online application at www.studentfinancedirect.co.uk. There are also lots of extras there, such as a handy calculator to work out how much you’ll be entitled to.
Below, is Push’s handy guide to what to do and when, but the general rule is annoyingly trite: ‘Don’t delay, do it today’. (You can hate the slogan, but the sentiment’s sound.) This guide is based on old-fashioned, paper-based applications. The basic application process on the website is roughly the same and it includes any specific instructions you need.
The amount changes every year but as a general rule if you’re hitting the capital, you’ll get an extra £2,000 or so to keep you afloat in the city's bright lights and if you're opting to live at home, you'll get a bit less. Based on the assumption that Hotel Ma 'n' Pa are less likely to charge their munchkins for water, electricity and rent and give them free reign of the fridge too.
Final year students also get less wonga, given that the Student Loans Company (SLC), the Government, your uni and anyone else of an annoyingly grown-up persuasion, expects you to get off your sorry behind and find a job.
Luckily final year revision and essay stress means more nights in front of the computer and less evenings out on the razz, which helps save a buck or two anyway.
75% of the maintenance loan isn't ‘means-tested’. In other words, you can get it pretty much regardless of who you are, whatever your folks earn, and whatever the SLC decided about giving you an award. There are conditions and rules and all sorts of red tape to go through, but most students will get a basic rate of approximately £4,000 per year of study.
The other 25% 'is income assessed' - assessing various factors like what your parents earn.
WHO CAN GET A GRANT?
For every pound of grant you get, your loan is reduced by a pound accordingly, up to a certain amount. So if you get a £600 grant, your loan will be £600 lower than if you got no grant. The loan won’t be reduced by more than the upper limit, however, even if you get a grant that’s bigger than that.
Whichever way you look at it, getting a grant won’t stop you from getting the same amount as your full loan entitlement. Depending on the size of your grant, you may end up getting more. And as the grant part of it won’t have to be repaid, ever, you’re on to a winner.
There’s one exception – just to prove the rule. The special support grant (like the maintenance grant, but for some students with kids or disabilities) doesn’t affect how much loan you get.
HOW MUCH MIGHT THEY GIVE ME?
Every year, the Government bumps up the maximum available loan – good news as far as having access to cash is concerned, but not so good given that it means students’ debts are snowballing every year.
Given the current economic doom and gloom - food prices, petrol, transport - on the up, it's no surprise that the loan increases are speeding up too - life is pretty darned expensive these days.
Currently, the most anyone can borrow in a year is £11,000, but most students can’t get anything like that much. It all depends various factors.
HOW DO I APPLY?
If you're applying for student funding there are two possibilities: old-fashioned application on paper (possibly filled out with an inkwell and quill) or the whizzy online application at www.studentfinancedirect.co.uk. There are also lots of extras there, such as a handy calculator to work out how much you’ll be entitled to.
Below, is Push’s handy guide to what to do and when, but the general rule is annoyingly trite: ‘Don’t delay, do it today’. (You can hate the slogan, but the sentiment’s sound.) This guide is based on old-fashioned, paper-based applications. The basic application process on the website is roughly the same and it includes any specific instructions you need.
paying it back
A loan wouldn’t be a loan if you didn’t have to pay it back and, although you don’t need to worry about it while you’re still a student, it’s just as well to know the score so you know what to expect later and aren't worried about men with crew cuts and a menacing lean paying you 'friendly' visits.
So, how does it all work?
The SLC will send you a statement every year between September and November. Then they’ll send you an interim statement to let you know how your account stands just before you’re due to start repaying. Once you’ve started making repayments, they’ll keep you up-to-date with a statement at the end of every tax year.
Any loan you’ve taken out for tuition fees is added on to the living costs loan, so you’re only paying back one lot of money at a time. You don’t have to make separate repayments for each.
Using your National Insurance number, HM Revenue & Customs will charge your employer the repayments and, come April after graduating, they’ll just take it out of your pay along with your income tax and your national insurance contributions. Your pay statement each month will show how much they’ve lifted.
If you’re self-employed, of course, you have no ‘salary’ as such and no employer for the SLC to deal with. Don't think you can get away with making no payments: you have to let HM Revenue and Customs know what you’ve earned each year (on a tax self-assessment form) and you pay your tax in one fell swoop - when you'll also get asked for your loan repayments as well.
Every year in September, until you’ve paid off your debts, the SLC will send you a schedule to show you how you’re doing. They’ll also let you know if you need to pay more or less per month over the next year, depending on how much interest they’re charging you.
This whole conspiratorial alliance with the taxman only applies to loans issued after 1998 – so-called ‘income-contingent loans’. So if someone older than that tries to tell you how it works based on their personal experience, bear in mind they probably used to wear shell suits and have a walkman.
That's not 9% of your earnings if you are on more than 25k, it's 9% of anything above £25000.
Basically it’s a pretty small slice of your pay packet - have a gander at the table to see who pays how much.
Basically, if you borrowed enough for 2,000 pints of Stella, 2,000 packets of peanuts and 500 cheese and bacon toasties, by the time you come to repay it, you’ll only have to give back the cost of the same again, please, barman. The rate is reviewed each year – it’ll be 4.8% until next year.
The SLC starts adding the interest from the day you get your first loan payment and annual statements each year after graduation show you the interest charged.
Pre-2012, an average student earning an average graduate salary should have reckoned on making repayments for at least a decade. But although debts were getting pretty podgy before this, the introduction of tuition fee loans as well for new students has inflated the student debt balloon more than Katie Hopkins' ego.
It’s hard to predict an average, partly because it’s all change and also because the introduction of more grants and bursaries means that not all students are borrowing most of their cash. The government reckon over 15 years will be the new average, although of course, any average figure has as all the usual ifs, buts and exceptions.
One thing is for certain - graduate debt is shooting up faster than Jack's beanstalk, fed a lethal cocktail of Miracle Grow and old teabags, and debts are likely to take even longer to repay in future. The repayment calculator at www.studentfinancedirect.co.uk can give you an estimate, or, once you’re paying it back, you can call or write to the SLC any time with your P60 and last three payslips and they’ll give you an idea of when you might finally ditch the debt.
In the meantime, the monthly repayments are such a small percentage of your income that, unless you stretch your bank balance to the point where cheques become rubber, you’ll hardly notice the effect on your income.
Compared to some of the other monthly salary-guzzlers once you’ve graduated – income tax, council tax, rent or mortgage, bills, other direct debits and so on – student loan repayments are just another fly on the windscreen.
If you do want to pay more each month or shell out one big lump sum to get yourself out of debt sooner, no one’s going to stop you. Just contact the SLC and they’ll tell you all about it. But if you’re in a position to pay off debts, pay off any others first because, if you’re paying interest at all, you won’t be borrowing more cheaply than this.
Hell, the rate on the student loan is better than any you’re likely to get from a mortgage lender, so it’s worth hanging on to anyway if you fancy getting a step on the property ladder one day.
It’s a period when the bank will let you off of repayments while you’re having a hard time, so long as you start paying again when you’re out of the woods. It can be either before or after you’ve started repaying.
With regards to repayment holidays for student loans, students can now take up to two years holiday following their graduation - even if they're earning over the repayment threshold. But it's best not to swan off to Jamaica, grow some dreads and enjoy the fumes, shall we say, without contacting your the SLC and asking about this option.
On the scale of things, living off watery porridge, wearing shoes with holes in them and laughing manically at the SLC, yelling 'screw you!' only makes you look a loser and it’s really not worth deliberately keeping your earnings low for 30 years just to get out of paying back the loan.
But it’s still good to know that, if, say you end up in a low-paid career or take lots of time out to raise a family, you won’t have to worry about the debt following you for ever and ever.
Other than not earning enough, there are three ways to get out of paying back your student loan or any part of it that you still owe:
It may not look easy to get out of it, but it’s still better than most loans – most lenders wouldn’t let a little thing like the grim reaper stand in the way of getting their money back.
Nonetheless, you won’t be able to avoid starting to repay when they ask you to on the basis of some flimsy excuse. If your salary’s still more modest than a bashful nun or you don’t get a salary at all, then fair enough – but otherwise forget about dodging the system.
It may not sound like the most foolproof scheme in the world, but trying to cheat the taxman is like giving yourself an enema with battery acid – it’s something you don’t even want to try.
Not only will tax evasion land you in jail, it’s also a pretty despicable way to behave towards other students who need your taxes to pay for the chances you’ve had.
If you change your address, your name, your bank account or anything else relevant, you need to let the SLC know.
Like those annoying birthday cake candles that won't blow out, even if you declare yourself bankrupt the student loan isn't written off, because it's taxpayers' money that you owe thank you very much. Ultimately, there’s no point running from them.
They may not be into horses’ heads in beds, but they’ll be willing enough to use the legal thumbscrews if you get shifty and, unless you have a completely fair case, they’ll wipe the floor with your sorry ass.
Yes, if your study abroad is a necessary part of your course and you’re going for at least eight weeks. Most language degrees involve some time abroad and that’s covered.
The maximum amounts are currently £9,654 if it’s your final year that you’re spending abroad. If you’re spending less than eight consecutive weeks abroad, you’ll get the same amount of loan as if you were spending the whole year studying in the UK.
However, if your course is studied abroad entirely, the SLC probably won’t pay out anything. If in doubt, ask your LEA.
I’ve finished my degree. I’m off travelling. Do I still have to repay my loan?
You need to let the SLC know what you’re doing and they’ll tell you where you stand.
It’s in your interests to tell them as soon as possible because it’s your responsibility to have them allow you to defer your repayments. If you just scoot off without getting your deferment authorised, you could have some serious explaining to do and some big payments to make when you come back.
If you’re going travelling and won’t be working, deferment shouldn’t be too big a problem because you’ll be under the fifteen grand income threshold for repayments anyway.
If, however, you’ll be living outside the UK tax system and will be earning above the threshold, you’ll need to make repayments direct to the SLC and not HM Revenue & Customs. You’ll need to provide evidence of your income for the financial year so they can calculate how much you should pay them.
If I’m away, can anyone else talk to the SLC about my loan on my behalf?
Afraid not.
It’s a legal thing. The Data Protection Act means the SLC can’t discuss it with anyone – not parents, not partners, not even your employer (they tell them no more than how much they want out of your salary each month).
The only way round it is to write a Power of Attorney letter to the SLC authorising them to release information to a named individual. Giving somebody Power of Attorney means they have the legal right to act on your behalf, so don’t go giving it to your new bessie mate from your night out - it should be someone you trust completely.
By the way, you can give someone Power of Attorney over your bank account, for example, but that doesn’t mean they have the same power over anything else – that includes bodily functions, your dreams - and your student loan.
What happens if I drop out or need to take some time out from my course?
If you drop out during the academic year, then that’s it, you’re cut off. You won’t get any more loan instalments and you’ll need to start paying your loan back starting from the April following the end of the academic year. You need to tell the SLC if you’re planning to leave your course, change course or take some time out.
If you’re away from your course for more than 60 days because you’re sick or have personal problems, you should also let the SLC know asap. Usually, they’ll make sure you continue to get your loan instalments so long as you don’t actually drop out.
Can part-time students get student loans?
Nope. There are some financially-assessed grants available instead, helping towards course costs, books etc. To find out more try calling the DfES information line on 0800 731 9133 or the SLC on 0800 405010. Or go to www.slc.co.uk
Part-time teacher training is treated differently and usually more generously, because the Government desperately wants more teachers.
I’m utterly skint. Can my future instalment(s) be brought forward?
No way, José.
The SLC is a stickler for rules, it doesn't matter if your favourite dress is on sale or you've got a huge gas bill to pay. Loans are doled out at the start of term, according to the dates supplied by the universities.
If your pocket is really hurting, check your eligibility for the Access to Learning Fund and then go ask your university’s or SU's Student Support Officer if you can get one.
I’ve received the full loan allowance. What if I still don’t have enough money to get by?
Try the Access to Learning Fund, scratchcards or singing in the street till people pay you money to stop. Still confused? The SLC are quite happy to answer questions and their helpline is mostly staffed by people with lovely Scottish accents, so try giving them a call on 0800 405010 . Or you can visit their website at www.slc.co.uk which is also helpful, but without the fine broque.
So, how does it all work?
- When you have to repay
The SLC will send you a statement every year between September and November. Then they’ll send you an interim statement to let you know how your account stands just before you’re due to start repaying. Once you’ve started making repayments, they’ll keep you up-to-date with a statement at the end of every tax year.
Any loan you’ve taken out for tuition fees is added on to the living costs loan, so you’re only paying back one lot of money at a time. You don’t have to make separate repayments for each.
- How you repay
Using your National Insurance number, HM Revenue & Customs will charge your employer the repayments and, come April after graduating, they’ll just take it out of your pay along with your income tax and your national insurance contributions. Your pay statement each month will show how much they’ve lifted.
If you’re self-employed, of course, you have no ‘salary’ as such and no employer for the SLC to deal with. Don't think you can get away with making no payments: you have to let HM Revenue and Customs know what you’ve earned each year (on a tax self-assessment form) and you pay your tax in one fell swoop - when you'll also get asked for your loan repayments as well.
Every year in September, until you’ve paid off your debts, the SLC will send you a schedule to show you how you’re doing. They’ll also let you know if you need to pay more or less per month over the next year, depending on how much interest they’re charging you.
This whole conspiratorial alliance with the taxman only applies to loans issued after 1998 – so-called ‘income-contingent loans’. So if someone older than that tries to tell you how it works based on their personal experience, bear in mind they probably used to wear shell suits and have a walkman.
- How much will I have to repay?
That's not 9% of your earnings if you are on more than 25k, it's 9% of anything above £25000.
Basically it’s a pretty small slice of your pay packet - have a gander at the table to see who pays how much.
- What interest will they charge?
Basically, if you borrowed enough for 2,000 pints of Stella, 2,000 packets of peanuts and 500 cheese and bacon toasties, by the time you come to repay it, you’ll only have to give back the cost of the same again, please, barman. The rate is reviewed each year – it’ll be 4.8% until next year.
The SLC starts adding the interest from the day you get your first loan payment and annual statements each year after graduation show you the interest charged.
- How long will it take to repay?
Pre-2012, an average student earning an average graduate salary should have reckoned on making repayments for at least a decade. But although debts were getting pretty podgy before this, the introduction of tuition fee loans as well for new students has inflated the student debt balloon more than Katie Hopkins' ego.
It’s hard to predict an average, partly because it’s all change and also because the introduction of more grants and bursaries means that not all students are borrowing most of their cash. The government reckon over 15 years will be the new average, although of course, any average figure has as all the usual ifs, buts and exceptions.
One thing is for certain - graduate debt is shooting up faster than Jack's beanstalk, fed a lethal cocktail of Miracle Grow and old teabags, and debts are likely to take even longer to repay in future. The repayment calculator at www.studentfinancedirect.co.uk can give you an estimate, or, once you’re paying it back, you can call or write to the SLC any time with your P60 and last three payslips and they’ll give you an idea of when you might finally ditch the debt.
In the meantime, the monthly repayments are such a small percentage of your income that, unless you stretch your bank balance to the point where cheques become rubber, you’ll hardly notice the effect on your income.
Compared to some of the other monthly salary-guzzlers once you’ve graduated – income tax, council tax, rent or mortgage, bills, other direct debits and so on – student loan repayments are just another fly on the windscreen.
If you do want to pay more each month or shell out one big lump sum to get yourself out of debt sooner, no one’s going to stop you. Just contact the SLC and they’ll tell you all about it. But if you’re in a position to pay off debts, pay off any others first because, if you’re paying interest at all, you won’t be borrowing more cheaply than this.
Hell, the rate on the student loan is better than any you’re likely to get from a mortgage lender, so it’s worth hanging on to anyway if you fancy getting a step on the property ladder one day.
- Repayment Holidays
It’s a period when the bank will let you off of repayments while you’re having a hard time, so long as you start paying again when you’re out of the woods. It can be either before or after you’ve started repaying.
With regards to repayment holidays for student loans, students can now take up to two years holiday following their graduation - even if they're earning over the repayment threshold. But it's best not to swan off to Jamaica, grow some dreads and enjoy the fumes, shall we say, without contacting your the SLC and asking about this option.
- Can you get away without repaying it?
On the scale of things, living off watery porridge, wearing shoes with holes in them and laughing manically at the SLC, yelling 'screw you!' only makes you look a loser and it’s really not worth deliberately keeping your earnings low for 30 years just to get out of paying back the loan.
But it’s still good to know that, if, say you end up in a low-paid career or take lots of time out to raise a family, you won’t have to worry about the debt following you for ever and ever.
Other than not earning enough, there are three ways to get out of paying back your student loan or any part of it that you still owe:
- If you get to retirement age (65) first
- If you become permanently disabled
- If you die
It may not look easy to get out of it, but it’s still better than most loans – most lenders wouldn’t let a little thing like the grim reaper stand in the way of getting their money back.
Nonetheless, you won’t be able to avoid starting to repay when they ask you to on the basis of some flimsy excuse. If your salary’s still more modest than a bashful nun or you don’t get a salary at all, then fair enough – but otherwise forget about dodging the system.
It may not sound like the most foolproof scheme in the world, but trying to cheat the taxman is like giving yourself an enema with battery acid – it’s something you don’t even want to try.
Not only will tax evasion land you in jail, it’s also a pretty despicable way to behave towards other students who need your taxes to pay for the chances you’ve had.
If you change your address, your name, your bank account or anything else relevant, you need to let the SLC know.
Like those annoying birthday cake candles that won't blow out, even if you declare yourself bankrupt the student loan isn't written off, because it's taxpayers' money that you owe thank you very much. Ultimately, there’s no point running from them.
They may not be into horses’ heads in beds, but they’ll be willing enough to use the legal thumbscrews if you get shifty and, unless you have a completely fair case, they’ll wipe the floor with your sorry ass.
- FAQs repayment
Yes, if your study abroad is a necessary part of your course and you’re going for at least eight weeks. Most language degrees involve some time abroad and that’s covered.
The maximum amounts are currently £9,654 if it’s your final year that you’re spending abroad. If you’re spending less than eight consecutive weeks abroad, you’ll get the same amount of loan as if you were spending the whole year studying in the UK.
However, if your course is studied abroad entirely, the SLC probably won’t pay out anything. If in doubt, ask your LEA.
I’ve finished my degree. I’m off travelling. Do I still have to repay my loan?
You need to let the SLC know what you’re doing and they’ll tell you where you stand.
It’s in your interests to tell them as soon as possible because it’s your responsibility to have them allow you to defer your repayments. If you just scoot off without getting your deferment authorised, you could have some serious explaining to do and some big payments to make when you come back.
If you’re going travelling and won’t be working, deferment shouldn’t be too big a problem because you’ll be under the fifteen grand income threshold for repayments anyway.
If, however, you’ll be living outside the UK tax system and will be earning above the threshold, you’ll need to make repayments direct to the SLC and not HM Revenue & Customs. You’ll need to provide evidence of your income for the financial year so they can calculate how much you should pay them.
If I’m away, can anyone else talk to the SLC about my loan on my behalf?
Afraid not.
It’s a legal thing. The Data Protection Act means the SLC can’t discuss it with anyone – not parents, not partners, not even your employer (they tell them no more than how much they want out of your salary each month).
The only way round it is to write a Power of Attorney letter to the SLC authorising them to release information to a named individual. Giving somebody Power of Attorney means they have the legal right to act on your behalf, so don’t go giving it to your new bessie mate from your night out - it should be someone you trust completely.
By the way, you can give someone Power of Attorney over your bank account, for example, but that doesn’t mean they have the same power over anything else – that includes bodily functions, your dreams - and your student loan.
What happens if I drop out or need to take some time out from my course?
If you drop out during the academic year, then that’s it, you’re cut off. You won’t get any more loan instalments and you’ll need to start paying your loan back starting from the April following the end of the academic year. You need to tell the SLC if you’re planning to leave your course, change course or take some time out.
If you’re away from your course for more than 60 days because you’re sick or have personal problems, you should also let the SLC know asap. Usually, they’ll make sure you continue to get your loan instalments so long as you don’t actually drop out.
Can part-time students get student loans?
Nope. There are some financially-assessed grants available instead, helping towards course costs, books etc. To find out more try calling the DfES information line on 0800 731 9133 or the SLC on 0800 405010. Or go to www.slc.co.uk
Part-time teacher training is treated differently and usually more generously, because the Government desperately wants more teachers.
I’m utterly skint. Can my future instalment(s) be brought forward?
No way, José.
The SLC is a stickler for rules, it doesn't matter if your favourite dress is on sale or you've got a huge gas bill to pay. Loans are doled out at the start of term, according to the dates supplied by the universities.
If your pocket is really hurting, check your eligibility for the Access to Learning Fund and then go ask your university’s or SU's Student Support Officer if you can get one.
I’ve received the full loan allowance. What if I still don’t have enough money to get by?
Try the Access to Learning Fund, scratchcards or singing in the street till people pay you money to stop. Still confused? The SLC are quite happy to answer questions and their helpline is mostly staffed by people with lovely Scottish accents, so try giving them a call on 0800 405010 . Or you can visit their website at www.slc.co.uk which is also helpful, but without the fine broque.
access funds
As a student, if you find yourself in deep financial doo-doo there may be help available.
Every university has an ‘Access to Learning Fund’ as a safety net for those who are experiencing problems. Ask if you need help – you shouldn’t have to suffer in silence if your situation has got to the stage where you are depriving yourself. Try asking the SLC, www.slc.co.uk, even if you don’t think you’ll get anywhere. The worst they’ll do is give you free advice.
The Government gives an official emergency fund to universities to rescue students who find themselves up a certain creek without a paddle, life jacket or even a piece of driftwood. Officially known as the Access to Learning Fund in England, Financial Contingency Fund in Wales and the Hardship Fund in Scotland, it may occasionally be referred to within a university by another name.
The Fund is open to all hard-up full-time and part-time UK undergraduates – but because of limited availability, the money usually goes on a first-come, first-served basis. Even if you have a genuinely urgent case, you may still end up disappointed, particularly if you leave it till later on in the academic year to apply.
The amount of money that each university has to distribute depends partly on how many students they’ve got, but only partly – it also varies according to the students’ backgrounds and so on. The universities are free to hand out the money as they see fit within certain guidelines. Some decide to help just a few people a lot, others prefer to help a lot of people just a little.
Generally they prioritise students from poorer backgrounds and those with particular difficulties – such as a disability or kids (those with kids may not appreciate the distinction). They also tend to favour students who’ve made it through to the final year of their course.
HOW DO I APPLY?
There’ll be a department of the university admin that deals with these funds – usually called something like ‘Student Services’. If you can’t find out who to ask, try the students’ union welfare department.
Student Services (or whoever) will get you to fill out a form that details any money you have coming in, and evidence of just how broke you are.
They should give you a decision within a month, although if the situation’s really extreme, they might let you know sooner and even let you have a cheque within a few days. That’s not the norm, however, and it’s better to apply before the situation becomes really desperate – it’ll only have got worse by the time you see any money.
To get any money at all, you’ll need to prove you’re in financial ‘hardship’. The definition of that is as fuzzy as a night on tequila, so the university is basically free to make it up as they go along. The main limiting factor is the amount they have to give out and how thinly they’re likely to have to spread it.
As a result, you may have to come up with some hard evidence to back up your case, because any money they give you won’t be available for anyone else. You may well have to pull out rent books and bank statements - and if there’s a sorry trail of debits to Armani, Tiffany’s and Le Manoir (or even French Connection, HMV and Pizza Hut), it won’t help your case.
The funds are given to students in crisis, particularly if they’ve been hit with huge or unexpected expenses. The amount paid out, therefore, is often just enough to cover a particular bill. The funds are also intended to help those students who may be considering giving up their course because of financial problems - which might be worth bearing in mind if you’re trying to concoct a convincing sob story.
Priority will also go to certain groups of students:
The piggy bank could even be empty before Christmas comes around, but similarly, the end of the year could come around with money left going spare. If you don’t ask, you won’t know.
Payments are usually given as grants, although occasionally you might get a short-term loan, for example to tide you over until some cash comes in from another source. Your university student services will give you more information and let you know their own guidelines and policy (if they have one).
WHERE TO GET THE DETAILS
Note that when it comes to financial help, most organisations try to help those who deserve it most. That usually means either those with the biggest financial challenges – single parents, disabled students and those from disadvantaged backgrounds – or those who show the most promise.
For starters, try your university’s website or admissions office and ask them what they know about scholarships and how to apply. While you’re at it, you might as well find out about bursaries and sponsorships too.
Failing that, you could try The Education Grants Advisory Service, or EGAS to its friends (www.egas-online.org). It's one of a small number of organisations that offers advice to undergraduate students about which charities to contact for grants of any kind.
It’s also worth surfing on down to the database at www.scholarship-search.org.uk. Type the link in carefully, though, as there are a host of American websites with similar names, which aren’t much good unless you’re from the other side of the pond.
Every university has an ‘Access to Learning Fund’ as a safety net for those who are experiencing problems. Ask if you need help – you shouldn’t have to suffer in silence if your situation has got to the stage where you are depriving yourself. Try asking the SLC, www.slc.co.uk, even if you don’t think you’ll get anywhere. The worst they’ll do is give you free advice.
The Government gives an official emergency fund to universities to rescue students who find themselves up a certain creek without a paddle, life jacket or even a piece of driftwood. Officially known as the Access to Learning Fund in England, Financial Contingency Fund in Wales and the Hardship Fund in Scotland, it may occasionally be referred to within a university by another name.
The Fund is open to all hard-up full-time and part-time UK undergraduates – but because of limited availability, the money usually goes on a first-come, first-served basis. Even if you have a genuinely urgent case, you may still end up disappointed, particularly if you leave it till later on in the academic year to apply.
The amount of money that each university has to distribute depends partly on how many students they’ve got, but only partly – it also varies according to the students’ backgrounds and so on. The universities are free to hand out the money as they see fit within certain guidelines. Some decide to help just a few people a lot, others prefer to help a lot of people just a little.
Generally they prioritise students from poorer backgrounds and those with particular difficulties – such as a disability or kids (those with kids may not appreciate the distinction). They also tend to favour students who’ve made it through to the final year of their course.
HOW DO I APPLY?
There’ll be a department of the university admin that deals with these funds – usually called something like ‘Student Services’. If you can’t find out who to ask, try the students’ union welfare department.
Student Services (or whoever) will get you to fill out a form that details any money you have coming in, and evidence of just how broke you are.
They should give you a decision within a month, although if the situation’s really extreme, they might let you know sooner and even let you have a cheque within a few days. That’s not the norm, however, and it’s better to apply before the situation becomes really desperate – it’ll only have got worse by the time you see any money.
To get any money at all, you’ll need to prove you’re in financial ‘hardship’. The definition of that is as fuzzy as a night on tequila, so the university is basically free to make it up as they go along. The main limiting factor is the amount they have to give out and how thinly they’re likely to have to spread it.
As a result, you may have to come up with some hard evidence to back up your case, because any money they give you won’t be available for anyone else. You may well have to pull out rent books and bank statements - and if there’s a sorry trail of debits to Armani, Tiffany’s and Le Manoir (or even French Connection, HMV and Pizza Hut), it won’t help your case.
The funds are given to students in crisis, particularly if they’ve been hit with huge or unexpected expenses. The amount paid out, therefore, is often just enough to cover a particular bill. The funds are also intended to help those students who may be considering giving up their course because of financial problems - which might be worth bearing in mind if you’re trying to concoct a convincing sob story.
Priority will also go to certain groups of students:
- Students with kids, especially lone parents
- Other mature students, especially those with existing financial commitments
- Students from low-income families
- Disabled students
- Students who have been in care
- Homeless students (or those from Foyers)
- Students in their final year
The piggy bank could even be empty before Christmas comes around, but similarly, the end of the year could come around with money left going spare. If you don’t ask, you won’t know.
Payments are usually given as grants, although occasionally you might get a short-term loan, for example to tide you over until some cash comes in from another source. Your university student services will give you more information and let you know their own guidelines and policy (if they have one).
WHERE TO GET THE DETAILS
Note that when it comes to financial help, most organisations try to help those who deserve it most. That usually means either those with the biggest financial challenges – single parents, disabled students and those from disadvantaged backgrounds – or those who show the most promise.
For starters, try your university’s website or admissions office and ask them what they know about scholarships and how to apply. While you’re at it, you might as well find out about bursaries and sponsorships too.
Failing that, you could try The Education Grants Advisory Service, or EGAS to its friends (www.egas-online.org). It's one of a small number of organisations that offers advice to undergraduate students about which charities to contact for grants of any kind.
It’s also worth surfing on down to the database at www.scholarship-search.org.uk. Type the link in carefully, though, as there are a host of American websites with similar names, which aren’t much good unless you’re from the other side of the pond.
bursaries
Bursaries, like grants, are a type of university funding that you’re never asked to pay back. Cha-ching. However, the criteria of eligibility for bursaries differ between institutions, and are often targeted towards specific groups. These groups may consist of those with low household income, BAME (Black, Asian, and Minority Ethnic) students, or students from abroad, but others are more widely available.
Bursary eligibility may also depend on the course you’re applying for. Doctors, nurses, dentists, physios and others likely to be swept up by the NHS before their mortarboards hit the ground are often eligible for something called the NHS bursary. This free—yes, free—money is handed out to help healthcare students with the costs of studying and living. Similar may be available on other courses, but your university is the best place to check this with.
Bursaries used to be difficult to access, perhaps due to their sometimes rare stipulations, such as the University of Madeuponthespot's bursary awarded to anyone called John, born on a Sunday with one leg longer than the other and a penchant for singing sea shanties. However, the Government's stir–up of the fees and grants pot means bursaries are now less rare.
The old-school bursaries are still kicking about, dating back to the days when university was free but their tough specifications and high levels of competition means they get much less publicity to stop poor Albert, for instance hanging his head in despair because he wasn't the best jam tart thrower in the land and therefore failed to get some free dosh to supplement his extreme sport.
Bursary eligibility may also depend on the course you’re applying for. Doctors, nurses, dentists, physios and others likely to be swept up by the NHS before their mortarboards hit the ground are often eligible for something called the NHS bursary. This free—yes, free—money is handed out to help healthcare students with the costs of studying and living. Similar may be available on other courses, but your university is the best place to check this with.
Bursaries used to be difficult to access, perhaps due to their sometimes rare stipulations, such as the University of Madeuponthespot's bursary awarded to anyone called John, born on a Sunday with one leg longer than the other and a penchant for singing sea shanties. However, the Government's stir–up of the fees and grants pot means bursaries are now less rare.
The old-school bursaries are still kicking about, dating back to the days when university was free but their tough specifications and high levels of competition means they get much less publicity to stop poor Albert, for instance hanging his head in despair because he wasn't the best jam tart thrower in the land and therefore failed to get some free dosh to supplement his extreme sport.
benefits
Students are basically excluded from most of the social security benefits system, not least housing benefits or dole (oops, Job Seekers’ Allowance) during vacations.
However, there are exceptions both to the ‘students’ part – students with kids, or with a disability can get support - and to the part about ‘most benefits’. For example, there’s help for students with prescription charges, not because they’re students but because they’re on a low income (if they are). Check out the medical costs section on our uni costs page.
Council tax
Full-time students are usually exempt from council tax unless they have a second home. Your university will give you a certificate to send off to the local council to prove you’re a student and that should be the end of it.
Tax credits
There may be some extra help for students with children through the tax credit system, see our students with kids page.
However, there are exceptions both to the ‘students’ part – students with kids, or with a disability can get support - and to the part about ‘most benefits’. For example, there’s help for students with prescription charges, not because they’re students but because they’re on a low income (if they are). Check out the medical costs section on our uni costs page.
Council tax
Full-time students are usually exempt from council tax unless they have a second home. Your university will give you a certificate to send off to the local council to prove you’re a student and that should be the end of it.
Tax credits
There may be some extra help for students with children through the tax credit system, see our students with kids page.