| If you are about to start University, then it pays | | | | rate. You can also pay back more than this if you |
| to know about the student loan process. Most | | | | wish, by sending money to the appropriate |
| students take out some form of student loan | | | | authority. |
| during their study to help them pay for their fees | | | | What is the interest? |
| and living expenses. If you are unsure about how | | | | The interest on student loans is subsidised by the |
| student loans work, then this guide will be able to | | | | Government, and so you only pay back the same |
| help you. | | | | amount that you borrowed, adjusted for inflation. |
| How are loans paid? | | | | However long it takes you to pay back the loan, |
| Student loans are paid in three instalments each | | | | you will only pay back the same amount in real |
| year, usually once each term. The first payment | | | | terms that you borrowed. |
| is usually made by cheque, and then after that | | | | What are the advantages of taking out a loan? |
| payments will go straight into your bank account. | | | | The advantages of taking out a loan are that you |
| How much can I receive? | | | | have money in order to pay for your living costs |
| The amount you will receive depends on where in | | | | whilst at University, meaning that you can |
| the country you are going to attend University, as | | | | concentrate on your studies rather than having to |
| well as the financial status of you and your family. | | | | work to earn money. This will help you to achieve |
| You can opt to get a fixed amount per year, or | | | | better grades and give you more free time. Also, |
| you can be income assessed and the maximum | | | | taking out an interest free loan is better than |
| amount you can receive will be determined. You | | | | getting into debt on high interest credit cards. |
| can take as little or as much of this amount as | | | | These debts are more serious and have to be |
| you want. On average the amount you can | | | | paid back or they will keep increasing. |
| receive ranges from £1,500 to £4,500 | | | | Are there any disadvantages? |
| each year, depending on your financial status. | | | | Obviously, the major disadvantage of taking out |
| How do I pay back the loan? | | | | student loans is that you will come out of |
| After you have finished University, you will begin | | | | University with a large amount of debt. This can |
| paying back the loan. Repayments will start from | | | | seem troubling at first, but you should remember |
| the April after you graduate, although you only | | | | that most students have the same problem, and |
| need to repay money after you start earning | | | | because you are not paying interest the debt is |
| above £15,000 per year, calculated on a | | | | not going to rise. You should think of the student |
| monthly basis. The amount you pay back will be | | | | loans as an investment in your future that will help |
| taken out of your wages just like tax, at a sliding | | | | you to achieve your career goals. |