What Is A Student Loan

What Is A Student Loan



What is​ a​ Student Loan
The loan accrues interest from the​ day it​ is​ paid .​
The good part is​ that the​ interest rate is​ linked to​ the​ inflation in​ line with the​ Retail Prices Index,​ which means you​ only really repay the​ amount you​ borrow with no profit made on​ the​ loan itself.
Do I​ qualify?
You qualify to​ take out a​ student loan if​ you​ are a​ part-time Initial Teacher Training student and are in​ full-time higher education.
If you​ are an​ existing student you​ will be able to​ take out either a​ Student Loan for Maintenance or​ a​ Student Loan for Fees.
On top of​ that,​ there are some other types of​ financial help you​ may be entitled to.
What’s Student Loan for Maintenance?
The Student Loan for Maintenance is​ designed to​ help you​ with your living costs during term times and holidays.
The amount of​ money you​ can have will depend on​ a​ few factors like your household income,​ whether you​ live at​ home while you​ are studying and whether or​ not you​ receive any Maintenance Grant and how much.
The amount of​ Student Loan for Maintenance you​ can borrow will not be affected by the​ Special Support Grant,​ if​ you​ receive any.
You will normally get a​ smaller loan in​ your final year at​ University,​ as​ there is​ no holiday period to​ cover you​ for and you​ will only need until the​ end of​ the​ final term.
You can apply for the​ non income assessed Student Loan and get around 75 per cent of​ the​ maintenance money regardless of​ your household income.
Whether or​ not you​ can apply for the​ rest of​ it​ will depend on​ your household income (‘income assessed loan’).
As a​ rule the​ Student Loan for Maintenance is​ paid in​ three installments directly into your back account at​ the​ start of​ each term.
The Student Loan for Fees is​ paid straight to​ your university or​ college by Student Finance Direct.
Repayments
They are due starting from April after your course is​ finished (at the​ start of​ the​ new financial year).
You are expected to​ repay 9% of​ your earnings over £15,​000pa or​ the​ monthly/weekly equivalents.
For example,​ if​ you​ are earning £18,​000 a​ year you​ will have to​ pay back nine per cent of​ £3,​000,​ which works out at​ approximately £5.19 a​ week.
And so,​ the​ more you​ earn,​ the​ faster you​ will repay the​ loan .​
You can repay more than this if​ you​ decide to.
Outstanding loans will be written off when you​ reach 65.




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