Available Student Loans in UK and Categories Involved.
Available Student Loans UK – There are different loan available for people studying in the UK and just in case you’re looking to know them, read through this article because that is what i”ll be showing you in this article.
Available Student Loans UK
Category Available in the UK
- Loans for first time students-this one is category of loan is available for those who are studying their first undergraduate Qualification
- Loans from private companies – if perhaps you’re doing two degree or a post graduate qualification, then this are the right one for you. you will need cover the costs of your education yourself, there are a number of loans from private companies available if you plan to borrow
- Student bank account with 0% overdraft – 0% overdrafts enable a student to borrow money for free while they study
- Credit cards for students – students could get a credit-builder credit card, but should be wary of spending too much with one
- Grants, scholarships and other funding – there are many grants and scholarships available from the government and universities
- Postgraduate funding – postgraduates can apply for funding to cover their tuition from government research councils and other academic funding bodies
- Loans for first-time and undergraduate students
You can apply for government backed loans from one of the four student finance agencies in the UK, if you are studying one of the following courses for the first time:
- First Bachelors degree, eg BA, BSc or BEd
- Foundation Degree
- Diploma of Higher Education (DipHE)
- Higher National Certificate (HNC)
- Higher National Diploma (HND)
- Postgraduate Certificate of Education (PGCE)
- Initial Teacher Training
Irrespective of which of the four UK nations you want to study in, your school expenses will be made available by the loan firm in your home nation.
- Student Loans Company (SLC) lends to students from England
- Student Finance Northern Ireland (Student Finance NI) lends to students from Northern Ireland
- Student Awards Agency Scotland (SAAS) lends to students from Scotland
- Student Finance Wales (SFW) lends to students from Wales
These loans will cover your tuition fees in full and you can also apply for a maintenance loan to aid cover your living expenses, the size of which will vary depending on your household income.
The loan that covers your course fees will be paid directly to your university or college, the maintenance loan will be deposited in your bank account at the start of each term.
These loans should only charge interest at the base rate to keep them in line with inflation.
Once you graduate and start earning over a certain amount each year, your repayments will be deducted from your salary in a similar method to income tax, if you’re self-employed you will need to calculate your repayments as part of your tax returns.
There are no early repayment charges if you want to repay some or your entire loan early
Loans for Tuition from Private Companies
If you’re studying for a postgraduate qualification, for your second undergraduate degree or studying at a private college, you will need to fund the costs of the degree yourself.
If you don’t have the money saved up to pay for this you have a few borrowing options, but note you should make sure you can afford the monthly costs of any loans you take out from private companies.
This is especially important if you plan to study full time and will see a drop in your income while you study.
Personal loans are unsecured, which means they are offered against your credit score, so to get the best rates or larger loans you will need to have a healthy credit report. It may be difficult to get a personal loan as student with no credit.
With a loan the monthly repayments are fixed and you will need to meet all of them to avoid default, unlike government backed student loans you still need to meet these repayments even if you are unemployed.
There are specialised loans for study available that offer repayment holidays, or reduced monthly repayments while you study. These are often called something along the lines of “career development” or “personal development” (not to be confused with generic personal loans) or simply student finance loans.
Student Bank Accounts with 0% Overdrafts
A good student bank account with a decent 0% overdraft is one of the most useful financial products anyone studying full time can get.
An overdraft is where you are able to spend more money than you have in you account, allowing you into a negative balance up to a limit. If it is a ‘0% overdraft’ this means you can effectively borrow for free.
Most student bank accounts should offer an 0% overdraft, but you will need make sure you apply to your bank to authorise it and make sure you don’t spend over the limit you are give or fees and interest charges will apply.
Often a bank will give you an overdraft limit that will increase for each year of study (eg £1,000 in first year, £2,000 in second, £3,000 in third). You will also typically be given a few years after graduating to repay your overdraft before being charged interest.
Credit Cards for Students
Credit cards can help cover living costs but should be considered carefully by full time students without a regular income.
It can be difficult for a typical full-time student to get a credit card, due to what would likely be a limited credit history and income.
A credit-builder credit card could be useful to get while studying, as it can help build up a credit score ready when your graduate.
But, bear in mind most of these cards don’t include any form of 0% interest period, so you will need to pay off your balance in full each month to avoid being charged interest.
If you don’t think you can repay a credit card balance in full each month, it may be best to avoid getting a credit card as interest charges could soon add up and leave you out of pocket.
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