Student loans explained

Find out exactly how the student loan process helps finance your life as a student without being overwhelmed by large repayments when you start earning.

What is a student loan?

A student loan is money paid out to students to help them pay for living costs. The loans are managed by the Student Loans Company. These are not commercial loans so they are a very cheap way to borrow money.

How much will I get?

You are entitled to receive a student loan to cover the cost of your course fees, as well as a maintenance loan to cover your living costs for the year.

Full year maintenance rates (2010/2011)

The exact amount of maintenance loan you are entitled to depends on your income, although everyone is entitled to 72% of the loan amount. Whether you can get any or all of the remaining 28% depends on your income and that of your household, where you live and study and the amount of maintenance grant you are receiving.

If you come from a high income household, you won't receive the full loan, and your parents are expected to make up the difference, though this is not compulsory.

For lower-income families, part of the loan can be replaced by the Maintenance Grant, which doesn't have to be repaid.
The figures below give the maximum, and the 72% rate. Loans are paid into your bank account in three instalments – one at the start of each term.

Students living at home: £3,838 maximum, £2,763 (72% rate).
Students living away from home outside London: £4,950 maximum, £3,564 (72% rate).
Students living away from home in London: £6,928 maximum, £4988 (72% rate).

Try using the Student Loan Calculator to find out how much maintenance loan you could receive.

Fee loans (2010/2011)

You are also entitled to a loan to cover your course fees – up to £3,225 per year in the UK. The actual rate will depend on the cost of your course, although most universities ask for the full fee for all courses.

In Scotland, Scottish undergraduates do not have to pay any fees for a full-time undergraduate degree course. Students from elsewhere in the UK who want to study in Scotland pay £1,820 of fees per year.

How do I apply for a student loan?

You apply through your Local Education Authority (LEA) by filling in an application form. They will assess your application and decide how much you can borrow. When the LEA has agreed your loan, you will need to contact your country's Student Finance provider, which will handle your application.

If you live in England, contact Student Finance England
If you live in Wales, contact Student Finance Wales
If you live in Scotland, contact The Student Awards Agency for Scotland
If you live in Northern Ireland, contact Student Finance Northern Ireland

You can find contact details for your LEA and download student loan application forms from www.studentsupportdirect.co.uk.

When do I have to pay the money back?

Repayments of loans start in the April after you leave higher education, and only once you start earning more than £15,000. Repayments are reasonable and depend on the amount you earn, not the amount you borrowed. For instance, if your income was £20,000 you would repay £37.50 per month.

The Government will write off student loan balances which are left unpaid 25 years after you finished your course.

Other money

If you need more help with your living costs or course fees, it’s worth looking to see if you are eligible for any grants, bursaries or scholarships, a maintenance grant, a specialist support grant or extra part-time study support.

Many universities also offer the Access to Learning Fund, a cash grant, which is available if you run into financial difficulty during your time at university. This will be assessed by university staff when you apply, so have a look and see whether your university offers similar help.

In addition, there are a number of sources of funding for parent students