Student loan uk
Student loans are quite famous in United Kingdom as many students complete different types of courses offered by national and international centers by means of these loans only. In United Kingdom, a student can get loan for meeting out his tuition fee expenses, living costs expenses and other expenses relating to education. A person can find government institutions as well as private institutions for getting the student loan.Let us discuss some of student loan sources in United Kingdom to know more about them.
Some sources
Most important source for getting student loans in United Kingdom is the Student Loans Company. This institution is basically a public sector organization that has been established specially for providing finance assistance to students in completing their studies. Financial assistance is provided by means of grants and loans to students studying in various universities and colleges across UK. A person studying in England, Wales, Scotland and Northern Ireland can easily apply for student loans provided by Student Loans Company. It is very important to note here that this organization provide student loans to more than one million students each year for fulfilling their financial requirements. The extent of financial assistance provided in the form of student loan depends upon the type of course taken by a student, place where a student is living and the individual circumstances of a student. Student loans provided to full time Higher Education students include various types of loans like Maintenance loans, that are given for fulfilling the cost of living expenses and Tuition fee loans, which are given for meeting the tuition fee expenses. Apart from loans mentioned above, this source also provides living cost grants to these students as well as different types of scholarships. In case any student has adult dependents or children or in case they have any kind of disability, they are eligible for the extra help provided by Student Loans Company.
To help a student in completing his course comfortably, most of students are provided with student loans that include maintenance loan as well as tuition fee loan. This type of student loans is provided at the start of academic term. It is very important to note here that in relation to total expenses for any type of eligible course, 75% of amount is given to all the students as loan irrespective of income of student.Rest 25% is provided on the basis of income of student.The student loans are charged with interest rate that is based upon the rate of inflation. Thus, value of amount taken by a student and repaid by a student is essentially the same.
The tuition fee loans provided by this source are essentially a loan given for tuition fee of a course and is not accessed on the basis of income. This type of loan is directly paid to higher education institution 90 day after the start of academic session, provided the student is in attendance. The maximum amount that is provided under this type of loan is either the tuition fee charged by the institution or £3070 whichever is less. This type of loan is repaid by means of Income Contingent Repayment. This source also provides financial assistance for the tuition fee in the form of tuition fee grant, which is a Government contribution based on the income assessment. One aspect that needs to be discussed here is the Scottish Graduate Endowment. This is basically a fixed amount that is paid by graduates at the end of program and is applicable to all the EU students and Scottish Domiciled Students that have started full time degree courses either on or after 1st August 2001. For all those students that graduate in April 2007 or later, this endowment has been abolished.
Maintenance loans are the other type of student loans that are provided by Student Loans Company. This is one of major student loan product that is given for meeting out the expenses related to living costs. These loans are provided on full time basis to undergrade students and to the students that have entered into initial courses pertaining to teacher training. This type of loan has three parts. These are non-financially assessed portion, for which all the students are eligible; the financial assessed part, which is dependable on the household income of student and financially assessed provision for extra week part. The maximum amount of loan provided under this category depends upon the place of residence of student, the year of course and other type of financial support available .
So far the repayment of loans is concerned; these are repaid by means of tax system. These loans are repaid only when student has completed his studies and has started earning more than £15000. This is the reason why the repayment is called as the Income Contingent Repayment. The reader should note here that Student Loan Company is mainly responsible for the financial support administration after the application process has been completed.All the policies regarding student loans provided by this source are formed by the Department for Innovation Universities and Skills and the Education Department of Scotland. The Headquarters of this organization is located at 100 Bothwell Street Glasgow, G2 7JD. The contact number of this office is 0141 306 2000. The Hillington office can be contacted at 11 Carnegie Road, Glasgow G52 4JT and the Colwyn Bay Office can be contacted at Student Finance Wales, Princess Park, Princes Drive, Colwyn Bay, LL29 8PL.
New Finance is another source that can be contacted in United Kingdom for getting the Student Loans. This source provides Graduate Loans to students and can be availed within 2 years of graduation and can be repaid up to 5 years time. A student can also use the loan amount towards the repayment of credit card debt in his final year, provided the amount is transferred back in no time. This source is basically an online source that is providing different types of loans in United Kingdom.
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