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| Student finance: When are UK student loans written off? | Student finance: When are UK student loans written off? |
| (12 days later) | |
| Thousands of students across the UK are heading to university this month, with many universities holding their Freshers' Week celebrations this weekend. | Thousands of students across the UK are heading to university this month, with many universities holding their Freshers' Week celebrations this weekend. |
| If it's your first time at university and your first time managing your own budget, here is what you need to know about getting that all-important maintenance loan in your bank account. | If it's your first time at university and your first time managing your own budget, here is what you need to know about getting that all-important maintenance loan in your bank account. |
| How do student loans work? | How do student loans work? |
| The details depend on where in the UK you live but student loans are typically made up of: | The details depend on where in the UK you live but student loans are typically made up of: |
| a loan for tuition fees | a loan for tuition fees |
| a maintenance loan for living costs | a maintenance loan for living costs |
| Most people are entitled to the tuition fee element which is equal to the annual cost of your course up to £9,250 per year., external | Most people are entitled to the tuition fee element which is equal to the annual cost of your course up to £9,250 per year., external |
| The maintenance loan is intended to cover accommodation, food, books and equipment. | The maintenance loan is intended to cover accommodation, food, books and equipment. |
| Maintenance loans are means tested so the amount you get depends on your family's household income. You might get extra money if you are disabled or have children. | Maintenance loans are means tested so the amount you get depends on your family's household income. You might get extra money if you are disabled or have children. |
| If you are under 25 and have no contact with your parents, you might be able to apply as an "estranged student"., external This means your parents' financial situation is not taken into consideration. | If you are under 25 and have no contact with your parents, you might be able to apply as an "estranged student"., external This means your parents' financial situation is not taken into consideration. |
| Research by the Higher Education Policy Institute, external suggests maintenance loans in England actually cover only about half the cost of living and less for students in London. | Research by the Higher Education Policy Institute, external suggests maintenance loans in England actually cover only about half the cost of living and less for students in London. |
| The Student Loans Company says graduates in England leave university with average debts of £48,470. | The Student Loans Company says graduates in England leave university with average debts of £48,470. |
| How much does university cost and does it increase earnings? | How much does university cost and does it increase earnings? |
| How much can I borrow? | How much can I borrow? |
| The amount of maintenance help available varies across the UK. | The amount of maintenance help available varies across the UK. |
| This year, students in England will be able to borrow up to £10,227 a year, external for a maintenance loan if living in the UK, outside London and away from their parents. This increases to £13,348 in London. | This year, students in England will be able to borrow up to £10,227 a year, external for a maintenance loan if living in the UK, outside London and away from their parents. This increases to £13,348 in London. |
| In Scotland, the maximum annual maintenance loan is £9,400, external for under-25s. Students studying away from home can borrow up to £11,150 if their home is in Wales , external(£14,170 if they go to London), and £6,776 if they're from Northern Ireland, external (£9,492 if they go to London). | In Scotland, the maximum annual maintenance loan is £9,400, external for under-25s. Students studying away from home can borrow up to £11,150 if their home is in Wales , external(£14,170 if they go to London), and £6,776 if they're from Northern Ireland, external (£9,492 if they go to London). |
| Students from England can use the loans calculator on the Student Finance England, external website | Students from England can use the loans calculator on the Student Finance England, external website |
| Students from Wales can go to Student Finance Wales, external | Students from Wales can go to Student Finance Wales, external |
| Students from Scotland can go to Student Awards Agency Scotland, external | Students from Scotland can go to Student Awards Agency Scotland, external |
| Students from Northern Ireland can go to Student Finance Northern Ireland, external | Students from Northern Ireland can go to Student Finance Northern Ireland, external |
| When will I get my first student loan payment? | When will I get my first student loan payment? |
| The tuition fees are paid directly to your university or education provider. | The tuition fees are paid directly to your university or education provider. |
| The maintenance loan is paid directly to your bank account in instalments. | The maintenance loan is paid directly to your bank account in instalments. |
| These are at the start of each term in England, Wales and Northern Ireland, and monthly in Scotland. | These are at the start of each term in England, Wales and Northern Ireland, and monthly in Scotland. |
| In order to be paid you'll need to register, external at your university or college. You'll usually do this in the first week of your course and you may have to take along your student finance entitlement letter. | In order to be paid you'll need to register, external at your university or college. You'll usually do this in the first week of your course and you may have to take along your student finance entitlement letter. |
| In England you should get a text from the Student Loans Company a few days before to let you know the maintenance loan is on the way. | In England you should get a text from the Student Loans Company a few days before to let you know the maintenance loan is on the way. |
| If you haven't applied for a student loan yet it's not too late. You can still apply for funding up to nine months after the first day of the academic year for your course. | If you haven't applied for a student loan yet it's not too late. You can still apply for funding up to nine months after the first day of the academic year for your course. |
| The application process is different depending on where you live: | The application process is different depending on where you live: |
| Students in England apply through Student Finance England., external | Students in England apply through Student Finance England., external |
| Students in Wales apply through Student Finance Wales., external | Students in Wales apply through Student Finance Wales., external |
| Students in Scotland apply through the Students Awards Agency Scotland, external | Students in Scotland apply through the Students Awards Agency Scotland, external |
| Students from Northern Ireland apply through Student Finance Northern Ireland., external | Students from Northern Ireland apply through Student Finance Northern Ireland., external |
| How much interest will I be charged? | How much interest will I be charged? |
| You are charged interest on the loan from the day you take it out, but the amount varies across the UK. | You are charged interest on the loan from the day you take it out, but the amount varies across the UK. |
| It is important to understand that the terms and conditions can change after you have borrowed the money. Any interest rate rises will apply to all student loans, not just new applications. | It is important to understand that the terms and conditions can change after you have borrowed the money. Any interest rate rises will apply to all student loans, not just new applications. |
| For students from England starting courses this year,the interest rate will normally be set at the retail price index (RPI) measure of inflation, external. It is currently 4.3%., external | For students from England starting courses this year,the interest rate will normally be set at the retail price index (RPI) measure of inflation, external. It is currently 4.3%., external |
| For students from: | For students from: |
| Wales, the rate is up to 7.3% depending on your earnings | Wales, the rate is up to 7.3% depending on your earnings |
| Scotland, it is 4.3% | Scotland, it is 4.3% |
| Northern Ireland, it is 4.3%. | Northern Ireland, it is 4.3%. |
| The amount graduates pay back will depend on how much they earn. | The amount graduates pay back will depend on how much they earn. |
| What is inflation and why is the cost of living rising? | What is inflation and why is the cost of living rising? |
| Q&A: Is there financial support for uni students in Wales? | Q&A: Is there financial support for uni students in Wales? |
| When do I have to start paying back my student loan? | When do I have to start paying back my student loan? |
| You do not have to start repaying your loan until you earn a certain amount of money after graduation, external. | You do not have to start repaying your loan until you earn a certain amount of money after graduation, external. |
| The threshold for students starting university in England this year will be £25,000. | The threshold for students starting university in England this year will be £25,000. |
| In Wales it will be £27,295, in Scotland £31,395 and in Northern Ireland £24,990. | In Wales it will be £27,295, in Scotland £31,395 and in Northern Ireland £24,990. |
| You do not repay anything if you earn less than the threshold. | You do not repay anything if you earn less than the threshold. |
| The earliest you will start repaying is the April after you leave your course. | The earliest you will start repaying is the April after you leave your course. |
| Payments are made automatically through the tax system. | Payments are made automatically through the tax system. |
| You generally repay 9% of the amount you earn over the threshold. | You generally repay 9% of the amount you earn over the threshold. |
| When are student loans written off? | When are student loans written off? |
| In England, students starting university this year will see their loans written off after 40 years, regardless of how much is owed. | In England, students starting university this year will see their loans written off after 40 years, regardless of how much is owed. |
| In Wales and Scotland it is 30 years and in Northern Ireland it is 25 years. | In Wales and Scotland it is 30 years and in Northern Ireland it is 25 years. |
| You still have to repay your student loan if you leave your course early., external | You still have to repay your student loan if you leave your course early., external |
| Some people may opt to make extra repayments to clear some or all of their loan early - there is no penalty for doing so., external | Some people may opt to make extra repayments to clear some or all of their loan early - there is no penalty for doing so., external |