The loan starts to cost more money as soon as it is paid back. The good thing is that the interest rate is tied to inflation based on the Retail Prices Index. This means that you only pay back what you borrowed and the lender doesn't make any money off of the loan.
Do I qualify?
If you are a part-time student in Initial Teacher Training and full-time in higher education, you can get a student loan.
If you are already a student, you can get either a Student Loan for Fees or a Student Loan for Living Costs.
On top of that, you may also be eligible for some other kinds of financial help.
What is a Student Loan for Living Costs?
The purpose of the Student Loan for Maintenance is to help you pay for your living costs during the school year and during breaks.
How much money you can have will depend on things like how much money your family makes, whether you live at home while you study, and whether and how much you get a Maintenance Grant.
If you get a Special Support Grant, it won't change how much you can borrow for a Student Loan for Maintenance.
In your last year of college, you will usually get a smaller loan because there are no breaks to pay for and you only need money until the end of the term.
No matter how much money your family makes, you can apply for a non-income-based Student Loan and get about 75% of the money you need to live.
The rest of it will depend on how much money you make as a family (an "income assessed loan").
As a rule The Student Loan for Living Costs is paid directly into your bank account at the beginning of each term in three equal amounts.
Student Finance Direct pays the Student Loan for Fees directly to your university or college.
Repayments
After you finish your course in April, you have to turn them in (at the start of the new financial year).
You have to pay back 9 percent of your earnings over GBP15,000pa or the equivalent amount each month or week.
For example, if you make GBP18,000 a year, you will have to pay back 9% of GBP3,000, which is about GBP5.19 a week.
So, the faster you pay back the loan, the more money you make. You can pay back more if you want to.
When you turn 65, any loans you still owe will be erased.
