Preparation for college, essay, interview, and finally receiving an acceptance letter from your dream institution is like a dream come true. Even if you are accepted, there is the matter of securing enough cash that needs addressing.
Because of its excellent education system and research facilities, many foreigners are also choosing the United Kingdom as their preferred study destination these days. However, the United Kingdom is one of the most expensive destinations as well because of the fees and the costs of living, which make a severe impact on an average middle-class family.
Many students qualify for scholarships or grants with their excellent scores, but some students do not. Studying in a college or university can burden anyone’s financial condition.
Most parents start saving for college education for their kids since their childhood, yet it becomes difficult to afford education sometimes. Smart are those who start saving at a very early age, so a college education is one less thing to worry about.
Partial scholarships can cover only tuition fees or part of it. Availing maintenance scholarship for the remaining costs like living, travel, food, and other daily expenses depend on your score.
The government of the UK provides various types of student loans and scholarships or grants for those in need. People who can’t get a scholarship can always apply for a private loan. Student loans can make a big difference in your education and future.
This article discusses essential details of education loans in the UK, ways to get them, what the loan covers, and how to repay them. Read along, and it will definitely help you.
Who Can Apply for Education Loan in the UK?
If you or your kid is applying to UK universities for an undergraduate or master’s degree, make sure you have a well-structured financial plan. You can apply for tuition fee funding if you’ve lived in the UK, EU, Iceland, Liechtenstein, Norway, or Switzerland for three years or more.
If you are a permanent resident of England and meet all of their criteria, you may be eligible for full support along with a tuition fee. There are some grants for foreign nationals as well. Based on your score and living status, you can avail of these.
Eligibility Criteria for the Students of the UK nationals
The qualifying conditions are a little different for the citizen of the United Kingdom and foreigners. These are listed below:
The best thing is that Tuition Fee Loans and grants have no upper age limit.
College/ University/ Institute:
Different universities offer various courses, and student loans largely depend on it. The student must attend a university or college that provides a qualified course.
Nature of Course:
The course you chose in your college must be recognised. It could be a part-time or a full-time course, but if it is on the list of recognised courses, securing a scholarship is higher.
The students who are doing a Degree Apprenticeship are not considered eligible for student loans.
Perusing Second Degree:
Normally, only the first degree is funded by the govt. Even if your previous degree was self-funded, it might be challenging to get another scholarship. You may still be eligible for partial funding for some exceptional cases or specific circumstances. Chances of full financing are limited.
You can get private student loans to fund your education.
Suppose you changed courses, stopped studying due to health or other issues, or had to repeat a year during your first year of funded higher education. In that case, you’ll still be eligible for financing for the same or a different course on your return. You will be needed to present documents to support your claims.
What Does the Education Loan Cover?
The grants or scholarships can support you fully or partially, depending upon your scores. You should approach a lender to get a loan based on your scholarships. Private loans are also available to fund studies.
If you get a study loan, you can straightway submit the fee of your college or university. As per the government website, an applicant can obtain up to £9,250 if he or she is a full-time student and up to £11,100 if enrolled in an accelerated degree program.
If these scholarships do not support the total amount, you’ll have to come up with additional means to cover the rest of your living expenses like rent, food, travel, etc. Many college students do part-time jobs, get family contributions, or take out a personal loan for this.
You can estimate your loan amount the student finance calculator. The calculator is available on government websites will also tell you if you’re eligible for any further grants or allowances.
Take COVID -19, for example, where students were taking classes online. What happens to scholarship, then?
If your course has transferred online, you must update your address in your online account if they have changed or you have moved to your native place. If you live in England but study elsewhere, you might be able to score yourself a grant to pay some travel costs as well, provided you are able to convince the grant commission.
Many students opt for private loans when they do not qualify for the govt loans. Finding a lender willing to take a chance on you might be difficult, especially if your credit score is less than ideal. Lenders who specialise in bad credit student loans may appear to be the best alternative. However, it does not involve that they are going to approve altogether.
Student Loan Repayment
The amount you repay is determined by the govt plan you used during your studies. It depends on your weekly or monthly. If your income is below the given threshold, you do not have to repay any amount.
Interest is applied to your loan when you get your first payment after your education. For people who are an employee, repayments are deducted from pay at the same time as tax and can be checked on the payslip. Your payslip will mention the amount deducted.
Lenders of private student loans have their own set of repayment policies depending upon the amount. The repayment period for the personal loan generally belongs to five to twenty years.
Higher education in the UK is very expensive. There are multiple options to fund your education, like self-funding, parental support, government-funded loans, private loans, etc. Taking out a loan requires some eligibility criteria fulfilled, so make sure before applying.
The UK government offers multiple options for student loan repayment. Check those. Private loans have separate terms for repayment.