Things You Should Know About Student Finance in UK

It’s challenging to understand student loans or student finance in the UK, and finding everything you need to know in one place isn’t always easy. It is highly crucial to know your options, how you’ll pay for your studies, and when you’ll have to repay the money while making plans for the future.

In the United Kingdom, student finance is a service provider run by a student loans company. Moreover, they provide financial support to the students on behalf of the British government to students entering higher education in the UK. According to GOV.UK both undergraduate and postgraduate students studying in the UK are eligible to get this funding. This offer is potentially being a tuition fee loan and maintenance loan. Furthermore, the two possible sources of financial aid are a tuition-price loan and a maintenance loan.

History of Student Finance in the UK

The Student Loan Company (SLC) was founded in the year 1990/91 by the Conservative government. The organization was built to provide students with some extra help towards their living costs in the form of low-interest loans. Later on, in 1997 the Labor government passed the Teaching and Higher Education Act which was introduced to cover students’ university tuition fees. After that in January 2000, the Scottish government decided to replace the yearly tuition fees for Scottish students. Welsh government did the same by following the Scottish government.

Eligibility for Student Finance

Students must meet some criteria to become eligible for student finance. According to GOV.UK, whether the students are qualified for the loan depends on:

• Students’ university and college: The university or college must be recognized or listed by the UK government. As most universities or colleges are recognized by the government, so you don’t need to worry about it.
• The course they have enrolled in: Your desired course must fall under the list of qualifying courses supplied by the government.
• Whether they’ve studied a higher education course before or not: If you have previously enrolled in any course but had to drop out for any valid reason, it may have the eligibility to get some funding again.
• Age of the students: If your age is 60 or above, you can still get partial funding.
• Their nationality or residency status: Generally, students are eligible to receive student loans if they hold UK citizenship and normally live in the UK.

If the students study full time or part-time, they may be eligible for student finance if their degree is in the UK and one of the following:

"Courses Starts & Application deadline in UK Universities for September Intake in UK 2022. If you wish to apply to UK University our Counsellors will help You."

Student Finance in the UK

Student finance is government funding that you can apply for a loan from the British government for paying your university tuition fees and living expenses at the time of your studying. If the loan is sanctioned, it covers students’ full university costs which are directly deposited to the university. According to UCAS, this student finance UK 2022 bears some major expenses of students’ university costs (lectures, seminars, and tutorials, course administration costs, access to the course-related workshops and various departmental facilities, etc.). Moreover, student finance covers some core facilities given by the universities to the students for their professional development. However, the loan does not cover library printing, photocopying, optional field trips, textbooks and other course materials, and club and social participation. Let’s find out the student finance in England:

1. Tuition Fees:

Every full-time student is entitled to a loan covering the full tuition fees if they fulfill the eligibility for student finance in the UK. Generally, universities or colleges set students’ tuition fees and the Student Loan Company (SLC) directly pays the tuition fees to the university and you’ll see the money. In the UK, full-time students can get up to £9250. On the other hand, the scholars of accelerated degrees can get up to £11100. The students also have to provide details of their family income and their course start date. Students will get the money directly to their bank account at the start of each semester.

Living/ Age Condition2022/23 Academic Year Living with Parents Up to £8171Living Away from Parents (outside of London)Up to £9706Living Away from parents (inside London)Up to £12667 Spend a Year of UK Course Studying Abroad Up to £11116If you’re 60 or more o the first day of the first academic year of the course up to £4106

Source: GOV.UK

However, there are possibilities that you may not get the full amount, so you need to make sure to find other ways to sponsor the rest of your living costs. You can manage funds from part-time jobs, local authority assistance, scholarships, or family support.

2. Maintenance Loan:

According to the National Student Money Survey, one of the main sources of money for students, while you’re at university, is a maintenance loan. This loan is also provided by the government and they are intended to help towards your living costs during your stay at university. This loan covers all your necessary things as well. Such as rent, bills, food, night out, etc. The maintenance loan is also deposited to students’ bank accounts like the tuition fee loan. Students can get the money in three installments a year. Such as one at the beginning of each semester (except for Scotland).

3. Maintenance Grant:

A maintenance grant is also known as Special Support Grant. If the students are from Northern Ireland and are doing a full-time higher education coursein the UK, you may be able to get funding for accommodation or other living costs. If your family income is less than £19203, you could receive up to £3475 Also, the amount you get from the Maintenance Grant or Special Support grant is the same.

4. Travel Grants:

Students can get a grant to cover some of their travel expenses if they live in England and

• You’re staying outside of England because of the requirement of your degree
• You’re on a study or work placement through Turing Scheme or Erasmus
• You’re a student of medicine or dental and staying outside of England as part of your placement

5. NHS Bursaries:

Whether you can apply for NHS Bursaries or not depends on when your degree will start and what you’re going to study. If you can meet the requirement and be eligible to get the NHS Bursary, the NHS will pay your standard tuition fees. Also, your tuition fees will be directly paid to your university bank account. Furthermore, the bursary income depends on your family income (own income, parents’ and spouse’s income). However, if somehow, you’re not eligible for a bursary, you may still have the chance to get student finance.

6. Private Student Loan:

There are two types of Private Student Finance in the UK for prospective students. They are:

• School Channel: Generally, the interest rate is pretty low here but it takes a long time to process. Also, this loan is certified by the schools.
• Direct to Consumer: These loans are not certified by the school authority. Here the students provide enrollment confirmation to the lenders and te directly distributed to the students.

7. Postgraduate Student Loan:

Postgraduate students can get funding through loans, studentships, bursaries, and grants. If you’re going to start your master’s degree in the UK, you can apply for a postgraduate student loan to finance your tuition fees and living costs. You can get up to £11570 if your course starts on or after August 1, 2021

Repaying Student Loan

Students need to pay back their Tuition Fee Loans, Maintenance Loans, and Postgraduate Loans. They do not need to pay back the other student loans such as grants and bursaries. However, if students leave their course early they might need to repay all the loans. The procedure of repaying the money depends on whether you’re employed or self-employed. The amount you need to repay will be deducted from your salary at the same time as tax and National Insurance if you’re an employee.

As there are a large number of universities in the UK, they have different requirements and deadlines. As a result, students need to be extra careful regarding the deadline for student finance in the UK. Students can talk to the universities or the funding organizations if they have any queries. In addition, they can book an appointment with our expert counselors to know more about the various pros and cons of student loans in the UK.

Ahz Associates is one of the largest UK universities representatives. We offer high-quality and professional UK University Admission Counselling services to prospective students across the world.