A maintenance loan can help with living costs

These means-tested loans are to help with the basic living expenses (rent, bills, food etc). They are available to all citizens who satisfy UK residency requirements.

The amount your son or daughter is entitled to depends on:

  • your income;
  • whether they will be living at home or in student accommodation; and
  • whether they will be studying in or outside London.

At the highest level, for students from a low-income background living away from home at a London university or college, the maximum loan in 2009 is £6,643 a year.

At the very lowest level, for students who live at home with better-off parents and go to a university or college outside London, the figure would be £3,673 in 2009.

Application process

Depending on where you live, your son's or daughter's application will be processed by your local authority (LA) or the Student Loans Company. Your son or daughter can apply by paper application or online. Find contact details for your local authority here. The loan is provided by the Student Loans Company. It is normally paid by cheque or directly into the student's bank account in three instalments - one at the beginning of each term.

Entitlement is assessed each year, so your son or daughter must remember to reapply every year of their course. As it can be quite a long process, it is important to apply early. The deadline is the end of June, so your son or daughter should apply as early as possible after the application forms are available. There may be more than one application to fill in, so they should leave plenty of time. Applications after June are still processed, but your son or daughter may not get the first instalment in time for the start of their course.

The loan has to be paid back once your son or daughter has graduated and is earning more than £15,000 a year. Repayment usually begins at the start of the following financial year (ie, the April after graduation, if your son or daughter is earning enough). However, some students will be able to defer repayment for up to 5 years. Once they begin repaying the loan, your son's or daughter's employer is notified about their loan repayment and it will be taken from their earnings at the same time as tax and National Insurance contributions are deducted.

Find out more about about maintenance loans in the student finance section.