GOING to university is a big step in a young person's life, and getting finance and student loan payments can be daunting.
But don't worry, we’ve broken down everything you need to know about student loans including which dates you can expect your payments.
Maintenance loan payment dates for 2019/20
Student loans are paid in three instalments, but the exact day you'll get them depends on your term start date.
If your course starts in September, you'll most likely receive your payments in September, January and then April.
Payments are generally made to students on their first official day of their course, but only if you've registered your attendance with the university.
This is because the university will let Student Loans Finance (SLC) know that you've enrolled, and it can then release the payment on your term start date.
If you don't know how to enrol, contact your university for more information.
SLC says it can take up to three days for payments to reach a student’s account though, so make sure you have money to cover initial costs, such as books, transport or your first month’s rent.
You can view your student loans payment schedule in your online account once your application has been approved.
If your payment dates don’t show on your account, it could be because your application hasn't been approved yet or because SLC is still waiting for a registration confirmation.
How do you apply for a student loan?
Students can apply online for a loan through the government website.
They can apply up to nine months after the start of the academic year.
Students can set up a student finance account online, often needing to include household income, proof of identity and a loan declaration as part of their application.
You can apply for tuition fee loans and maintenance loans.
If you can't apply online then you will need to download the application forms and send them by post.
Do you need to apply for student finance every year?
Changes in the Student Finance process means that continuing students must apply for funding every year.
Now paper applications have been scrapped, students must apply online.
Students can apply for funding via the government website.
When does repayment start?
When a student needs to start paying back their loan – and how much they have to pay – depends on which repayment plan they are on.
Plan One (Loans taken out before September 1, 2012 in England or Wales)
- If a student's income is more than £18,935, they will start repaying their loan the April after leaving their course.
- This amount will increase to £19,390 from April 2020.
- The amount they need to pay back will change on April 6 every year.
- Students will stop paying if their income drops below this amount.
Plan Two (Loans taken on or after September 1, 2012)
- If a student's income is more than £25,725, they will start repaying their loan the April after finishing their course, or, if they are studying part-time, the April four years after the course started.
- This is set to increase to £26,575 from April 2020.
Repayments are taken out from a person's salary at the same time as tax.
Students can make voluntary repayments through the Student Loans Company.
But experts have warned graduates could be overpaying their loans by hundreds of pounds without realising if they are caught out by the automated payment system.
In fact, graduates are owed a whopping £28million in overpayments, research found last month.
What is a maintenance loan?
A maintenance loan is for living costs, but you may have to provide details of your household income on application.
The cash is paid into your bank account at the start of each term.
To find out how much you can borrow, visit the government website.
How much are university tuition fees?
The amount that a student will pay for their university tuition depends on where they study, and what they study.
Tuition fees can start from around £9,000, but can increase to more than £16,000.
According to the Business Insider, the UK's most expensive university is Regent's University London, followed by the Royal College of Music and the University of the Arts London.
A student will pay back nine per cent of their income over the minimum amount of: £17,775 for Plan 1, £21,000 for Plan 2.
Interest starts being added to your loan from when you get your first payment.
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