Aspiring university students can still apply for a student loan for the upcoming September intake, but they may not receive their maintenance funds by the first day of term. Student loans typically comprise of a loan for tuition fees and a maintenance loan for living costs. The tuition fee element is generally equal to the annual cost of a course, up to £9,250 per year, while the maintenance loan covers accommodation, food, books and equipment. The amount of maintenance funding provided is means-tested, depending on the household income of the applicant’s family, and additional funds may be awarded if the student has disabilities or children.
Those under 25 with no contact with parents may apply as “estranged students”, meaning that parents’ financial situations will not be subject to consideration. However, according to the Higher Education Policy Institute, maintenance loans in England only cover approximately half of living costs, which is even less for students studying in London. Graduates in England leave university with average debts of £44,940, according to the Student Loans Company.
The amount of maintenance funding available varies depending on the region of the UK in which the student resides. In England, this year’s maintenance loan reaches a maximum of £10,227 annually for students living in the UK, outside of London and away from their parents. This figure increases to £13,348 for London residents. Students in Scotland can receive an annual maintenance loan of up to £9,400, whereas those studying outside the home, away from London, can obtain £12,150 in Wales and £6,776 in Northern Ireland.
Applicants in England may apply for student financing until nine months after the start of the academic year for their course. Student Finance England has encouraged students to apply by May 17 to ensure funding is in place for the academic year’s start. Students are guided to apply via different methods based on their location. The tuition fee is paid directly to the university or education provider, whilst the maintenance loan is paid in instalments, with monthly reimbursement being paid in Scotland and payments directed at the start of each term elsewhere in the UK.
Loan interest begins accruing from the date the loan is taken out, but the amount varies according to the region of the UK. For English students, the interest rate will be set at the retail price index measure of inflation. Graduates repay the sum borrowed depending on the amount they earn, with the repayment threshold this year set for England students at £25,000.
In England, graduates will settle their loans for 40 years before they are written off, irrespective of how much is owed, 10 years longer than last year. Written off time periods for those in Scotland and Wales are 30 and 25 years, respectively. Loan repayments are made automatically via the tax system, and extra repayments can be made without charge
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