Student maintenance loans - 2009 entry

What is a student loan?

The purpose of student loans from the government are to help cover the costs of your tuition fees, and basic living costs (rent, bills, food etc). Two types are available: tuition fee loans, and maintenance loans. Many other kinds of loan are available to students whilst they are studying at university or college. Depending on the source of the loan, the interest rate can have a severe impact upon the overall debt at the end of your degree. However, the interest rate on a government student loan only takes inflation into account, so the overall amount will, in real terms, be the same as the amount borrowed.

Both types of student loan are available to all students who meet the basic eligibility requirements. Find out more information from the relevant site below.

England: Student Finance England

Wales: Student Finance Wales

Scotland: Student Awards Agency for Scotland

Northern Ireland: Student Finance Northern Ireland

Does everyone have to get a loan?

No. If you do not need extra financial assistance, you don't have to apply for student loans. If you do apply, remember that they are not grants: you do have to pay it back, but not until you have finished your course and are earning over £15,000.

Is there an age limit for applying?

Student loans for tuition fees are available to all eligible students and, if you live in England or Wales and are aged under 60, you can apply for a student loan for living costs. In Scotland you need to be aged under 50 or aged 50-54 planning to work after your course.

What am I entitled to?

For tuition fee loans, you can apply for any amount up to the full cost of fees that you are charged. This loan is paid straight to your university or college, and it does not depend on income.

For maintenance loans the amount you are entitled to depends on your income or your parents' or partners income; whether you will be living at your parents' home, and if you will be studying in or outside London.

In 2009/10, students living away from home and studying in London could get a maximum maintenance loan of £6,928. Students living away from home and studying outside London could get up to £4,950, whilst students who live at home with their parents could get up to £3,838. It is important to remember that the final academic year of a course is viewed as having fewer weeks than previous years, which include the need for financial assistance during summer holidays, so the loan will be lower in your final year.

How do I get it?

Depending on where you live, your application will be processed either by your local authority or the Student Loans Company. You can apply by paper or online. Once your application has been processed, you will get a letter telling you how much you will receive. Payment is normally paid directly into your bank account in three instalments - one at the beginning of each term (but remember that it may take a few days for the payment to reach your account, so make sure you have enough money for the first few days).

Entitlement is assessed each year, so you must remember to reapply every year of your course.

In order to ensure that you receive your first payment at the start of term, you should return your completed form to the above address by:

  • 24 April 2009 - If you are applying for student finance which does not require any financial information to be provided.
  • 26 June 2009 - If you are applying for student finance which does require financial information to be provided.

If you miss these deadlines, your application will be processed as soon as possible, but your first payment may not be available at the start of term.

This form should be returned within 9 months of the start of your academic year, otherwise you may lose your full entitlement to student finance.

When do I have to pay it back?

The loan has to be paid back once you have finished your course and are earning more than £15,000 a year. Repayment usually begins at the start of the following financial year (the April after you have finished your course, if you are earning enough). However, if you are due to start repaying your student loan on or after April 2012, you may be entitled to defer your loan repayments for up to five years. Further information is available at www.studentloanrepayment.co.uk.

When you are required to repay your loan, your employer will be notified about your loan repayment and it will be taken from your earnings at the same time as tax and National Insurance Contributions (NICs) are deducted. Student loan repayments are not a deduction for tax or NICs purposes.