Student Loans 2012

Starting university in 2012?

If you are thinking of coming to university in 2012, you may be confused about how the recent fee increases will affect you. You can now apply online for your 2012 funding package, but before you do you can find out the key facts and myths here:

Facts Explained

you can apply for a Tuition Fee Loan to cover the cost of your course (up to £9,000). This is paid directly to the university so you don't need to worry about payment
you can get a Maintenance Loan for living costs if you are a full-time student
you can then apply for a Maintenance Grant of up to £3250 if your household income is less than £42,600 and you are a full-time student. The advantage of this grant is that for every pound awarded, the maintenance loan is reduced slightly so that there is less to pay back at the end of the course
these loans and grants are paid into your bank account at the start of each term, once you've registered on your course
scholarships and bursaries will offered by the university to help with living costs
there will continue to be extra financial support if you have a disability, children or adult dependants
you start to repay your loan once you complete your course and start earning more than £21,000 but not until the April following graduation
you will not need to repay any grants or bursaries you have received
if you are already on a course at university or college, you won't have to pay these higher fees. This is particularly good for students starting courses in 2011 as the fee rises will not apply to you for subsequent years of the course
Student Finance will cover the cost of one repeat year or if you decide to change course within your first year of study, providing you do not repeat any further years or change course again

EU students

If you’re an EU student from outside the UK studying in England, you can apply for a Tuition Fee Loan if you meet certain conditions but not loans for living costs.

If you have been working in the UK for a while and intend to continue doing so whilst studying, you may be assessed for further financial support but this is not always guaranteed.

Part-time students

From September 2012, part-time students will be able to apply for a tuition fee loan to help pay for fees but not for living costs.

Part-time students who earn over £21,000 have to start paying back their loans after three years if their course hasn't finished.

Myths Made Clear

the amount you owe will increase each year with interest. Interest is charged at the rate of inflation and the Retail Price Index (RPI) plus three per cent while you study. The positive thing about this is that at certain points there may not be interest charged. However, in general the rate of interest will be significantly lower than ordinary high street bank loans
there are no credit checks involved in assessing your student loan. Moreover, the student loan will not go against you when applying for further credit with other lenders. Some lenders may ask how much you pay per month from your wage for your loan but shouldn't penalise you for how much you owe
Loans are written-off after 30 years even if you haven't finished repayments. This is great for students who owe large amounts because your repayments will be exactly the same amount as someone else who owes less who is earning the same amount as you
Repayments are normally taken automatically from your salary and calculations are made by your employer. You will only need to do this yourself if you become self-employed in the future