Introduction to Student Loans
Making the decision to go into higher education is not easy; aside from the academic aspects, such as where to study and which course to choose, there are many other things to consider. Moving away from home for the first time is a difficult experience for many, and it is worth taking some time to prepare yourself. Studying also represents a considerable financial commitment: one which many students find daunting.
In recent years the UK government has introduced various funding options for prospective full and part-time students, which give students greater financial flexibility and allow them to concentrate on their academic futures, rather than worrying about their bank balance.
For undergraduates, there are several funding options available. The majority of undergraduates apply for a student finance package, which is made up of the 'tuition fee' loan and the 'maintenance' loan. The tuition fee loan covers the cost of the student's course, whilst the maintenance loan covers everyday living expenses, such as food, drink and travel.
Student loans are not available for postgraduate students, but there are alternative funding options on offer, such as research grants, scholarships and bursaries. These are available from higher education institutions as well as external organisations, including charities and trusts.
Student loans are an attractive means of financial support while doing a degree, since the interest rates charged are low and tend only to rise in line with inflation. Increasingly, private lending institutions are offering alternatives to the traditional student loan packages offered by the Student Loans Company (SLC). However, these tend to have higher rates of interest and less flexible repayment terms, and are often only available to students on vocational courses.
For more details of student loans, see:
