UK University Studies – FAQ (PART 2): What are the most common questions about studying in the UK in 2024?
What is the repayment threshold for student loans?
The income level at which you must begin repaying your student loan is known as the repayment threshold. This threshold is currently set at £25,000 annually in the UK. You will begin repaying your student debt if your yearly salary is above £25,000. Should your income fall below the cutoff, you won’t be obliged to return the loan. We’ll keep you informed with any updates as the threshold is subject to change.
- How are interests calculated?
The interest on student loans is calculated using the Retail Price Index (RPI), which measures inflation. Interest begins accruing from the moment you borrow the loan until it’s paid off or cancelled. The RPI from the previous March is used to establish the starting point for each academic year. The interest rate on student loans is lower than commercial loans, such as credit cards or personal loans.
- What is course recognition & eligibility?
The university or college you want to attend must be approved by the relevant authorities in order for you to be eligible for a student loan. We’ll evaluate your institution’s eligibility for student loans, although the majority of UK universities are recognised. Additionally, the course you’re enrolling in needs to be on the list of accepted courses. Undergraduate courses are usually included, however there can be differing requirements for part-time or specialised courses.
- Can part-time student access loans?
Students studying part-time can apply for a student loan, but the application process may differ from full-time students. Part-time students usually apply later in the year, and the disbursement of funds may be adjusted accordingly. The amount of funding available for part-time students is also based on factors such as household income and course duration.
- Do previous studies have any impact?
Your past academic performance may affect your funding and eligibility for a new course. Students are often eligible for financial aid for the length of their study plus an extra year. Should you have prior study experience, the financing years may be modified in accordance with the length of your prior studies. There might be an exception for students who had to withdraw from their prior course. You might still be qualified for full funding for your new degree in such circumstances.
- What are funding adjustments?
Students with compelling personal reasons for interrupting their studies may be eligible for funding adjustments. These reasons include serious illness or unforeseen circumstances that prevent you from continuing your studies. If you’ve had to suspend or withdraw from your course inform Student Finance England as soon as possible. They will reassess your funding entitlement based on the number of days you attended your course and make adjustments to your student finance.
- How are loans disbursed?
At the beginning of each term, the Tuition Fee Loan is paid directly to your institution or university to pay the cost of your course. At the beginning of each term, the Maintenance Loan is paid straight into your bank account to assist with living expenses. The amount of both loans is determined by a number of variables, including your household income, the location of your courses and whether you are enrolled in classes full-time or part-time.
- What additional grants can students access?
There are grants available for students with specific needs or circumstances. These grants provide extra financial support that doesn’t need to be repaid. Some examples include the Childcare Grant, Parents’ Learning Allowance, Adult Dependants’ Grant and grants for students with disabilities. Eligibility criteria and application processes may vary, so it’s recommended to check with Student Finance agencies for more information.
- When do I start repaying my loan?
Generally, repayment begins in the April after you graduate or leave your course if your income exceeds the repayment threshold of £25,000 per year. You won’t start paying back your loan until April 2027, for instance, if you finish a three-year course that starts in September 2024. Repayments are deducted directly from your salary by your employer or through your tax return if you’re self-employed.
What is loan suspension and withdrawal?
If you drop out, you’ll have your funding re-assessed depending on how many days you had attended. If you decide to drop out, your funding is also re-assessed and you’ll be liable for any tuition fees or maintenance loans paid to your college or university. If you go back to school, you may sometimes be able to apply for student finance again.