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