Education Loans Reduce the Burden of Students
Education has become one of the most costly services today. To lower the financial burden of the students and to help them to purse higher education, Government of UK grants educational loans by Student Loans Company. Private banks also grant education loans.
Education is essential for success in future. Many people argue that education is not a hard rule to succeed but nobody would deny the fact that education gives an upper hand in later part of life. The universities cost have grown up to great heights making it difficult for common people to afford for education. At such instances education loan is the right choice to cover up educational expenses. Student loans or education loans are nothing but a credit help which is offered to the student to purse his educational plans. The interest rates of these loans are usually less and have flexile repayment tenures. In United Kingdom education loans are provided both by the government and private banks. Government grants loans through Student Loans Company (SLC).
There are no special requirements to avail education loans. There is no age limit to avail these loans, however to apply for maintenance loans the student must be below 60 years of age. If a person is a UK citizen or if he has residency status in England then he can apply for education loans. The course a student pursues is also considered. Loan amount is granted to both the foundational courses and to higher educations. The only need here is the university or college must be registered. Government grants loan only to the first higher educational course. Part time students are also eligible for educational loans but the student has to abide to course intensity. Course intensity is where the student has to complete a 25% of equivalent course in full time on all academic years.
Education Loans in UK
The three common types of loan in UK include tuition fee loan, maintenance loan and maintenance grant loans. Extra funding is offered to students who seek a medical degree, social work students, teacher training students and students in special circumstances. Full time students are eligible for all the three types of loan and also the extra funding. Part time students can avail only a tuition fee loan and the extra funding from universities or colleges.
Tuition fee loan as the name suggests is the loan that is given to cover the tuition fees for the course. The loan amount would either cover part of the tuition fees or the full amount. This loan is paid directly to the college or university by the Student Finance Direct, a wing of SLC. Both part time and full time students can apply for this loan. The loan repayment has to be done to the college and only the course which is approved is eligible for loan approval.
Maintenance loan for living costs is given to full time students who are citizens of UK. Part time students and European students cannot apply for this loan. To get this loan details like household income including parents or partners or self must be submitted. The loan amount covers all the maintenance cost like accommodation, transportation and stationery charges. This loan is paid to the bank account directly at the starting of each term. The repayment is also expected to be paid to the bank. These loans are also given by Student Finance Direct.
Maintenance grant for living costs also requires details like household income, place of study and year of course. The loan amount is also subject to these requirements. The loan amount is paid directly to the bank account directly. Sometimes the grant is given in 3 installments. The maintenance grants reduce the amount of maintenance loan eligible.