Student Loans
The days of students getting through university by means
of a maintenance grant have long since passed. Those in power
witnessed far too many students spending three years partying
on government money only to come out minus a qualification.
Nowadays it's almost impossible to go on to higher education
and support yourself without taking out a huge student loan
from the Student Loans Company (SLC), and even then the majority
of students need to do part time work to get by.
your local education authority (LEA) will asses your entitlement
for the amount of student loan you will be allowed and the
fees you will need to pay - or the student awards agency in
Scotland - and are based principally on your parents' income.
Exceptions are if you are married, over 25, have been supporting
yourself for at least three years, are an orphan, or are in
care.
The student loan process
The LEA will inform you of the amount you are expected to
contribute towards your fees and will pay the balance straight
to the university. In the academic year 2002-2003, for example,
students were expected to contribute a maximum of £1,100
towards tuition fees - a quarter of the £4,400 one year
of academic study is estimated to cost. Once it has decided
how much loan you are entitled to, the LEA will inform the
government-owned Student Loans Company, which issues the cheques.
You will not get a cheque for the full loan amount at the
start of the year. The loan is paid each term, in two or three
instalments depending on when you apply for it.
You will eventually have to pay the cash back, but with this
facility last year you could get up to £3,905 for the
first year if you live outside London and £4,815 in
the capital (figures change annually).
Individual entitlements
The amount of funding you actually receive depends on which
year you are in and where you live. You are automatically
entitled to 75% of the loan limit but the rest is means tested
according to your parent’s income. If your parents'
combined income is less than £20,480, your LEA will
pay the whole amount of your fees. You should also then be
entitled to the full student loan.
If your parents earn up to £30,501, they will be expected
to pay something towards your tuition fees, but not the full
whack. Anything over that and you are unlikely to receive
assistance. Unless you have brothers or sisters at university,
you will be expected to pay the full £1,100 tuition
fees and will probably be entitled to only 75% of the full
loan entitlement.
You will be entitled to slightly less of the maximum student
loan in your final year. The assumption is that you will be
working by the summer after graduation. Final-year students
will typically be entitled to a maximum loan of £3,390
or £4,175 in London.
Student Loans UK
- The definitive resource for student loans
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