When and how do I apply?
by Admin
Posted on 17-11-2022 05:14 PM
The easiest way to apply is online and it only takes 30 minutes to apply and even quicker if you’re re-applying.
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, capped until academic year 2024/2025. The maintenance loan is intended to cover accommodation, food, books and any equipment you need. It is 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're under 25 and have no contact with your parents, you might be able to apply as an "estranged student". This means your parents' financial situation is not taken into consideration.
How do I get the money?
This is an audio transcript of the money clinic podcast episode: ‘should i pay off my
student loan
early?’
[music playing]
claer barrett
every year, over 2mn students graduate from university in the uk. And the majority who start their working life tens of thousands of pounds in debt. James
i did do a four-year course, which is four times 9,250, and also with a maintenance loan as well. And so in total, i think my student debt was around 63,000.
Claer barrett
that’s james. He’s 23 and he’s just starting out in a graduate job in financial services. But here’s the thing. While he’s about to start earning for the first time, he’s also about to begin making repayments on all of that student debt he’s built up.
There isn’t a ‘normal’ amount of student debt because the size of the loan is dependent on individual circumstances like your family’s household income and whether you decide to live away from home. With a student loan, the total amount you borrow isn’t directly linked to how much you have to repay back overall or linked to the amount you pay back each month. The amount you repay in total and how this is paid back on a monthly basis solely depends on what money you earn after university. Because you’ll only repay the loan if you get a job which pays you a salary over a certain threshold, the amount of debt you take on with a student loan isn’t as important as with a normal loan.
Loans accumulate interest at a rate based on the rpi (retail price index) measure of inflation. The interest rate is currently rpi+3% while you’re studying, and until the april after you have completed the course. After that, the interest charged will depend on your income. Between 1 september 2022 and 31 august 2023, the interest rate will be capped at 7. 3%. However, as the amount you pay back is based on how much you earn and not how much you owe, the amount of interest added to your loan won’t ever affect the amount you pay each month.
As both your tuition fee and maintenance loan payments are made through instalments over the year, you’ll have to pay back whatever you've already borrowed plus interest. You’ll be charged for a full term even if you leave part-way through. The student loans company will assess your situation and be in touch to help you organise an affordable repayment plan. It may ask for a portion of money back from your most recent maintenance loan as you’re only entitled to this during the time you’re enrolled. But you won’t have to start repaying the rest of your loan until the following april, and when you earn over the repayment threshold (see above).