UK Guide to Student Loans

Student loans are for students only. If you are considering applying for a student loans via the standard government run scheme, be aware that you can only borrow certain amounts each year. For example, £3,240 (if you live at home,) £4,095 (if you don’t live at home,) £5,050 (if you don’t live at home and are studying in London.) In most cases you cannot borrow as much in your final year. Each student can claim up to 75% of that set amount each year, and you can only borrow the other 25% if you and your family’s incomes fall below a pre-determined level. These student loan schemes need not be repaid until you start work after your study and your salary reaches a certain amount. At that time you repay a certain income-based amount until the loan is paid off. Commercial loan periods will vary according to the agreement you enter into with the lender. The biggest advantage of government run schemes is, while you are a student, you do not need to repay your loan. Also, these schemes are given amazingly low interest rates so you’ll be making significant savings on the amount you ultimately repay.