ADVICE

A guide to Student Finance

We know that the thought of taking out a student loan can be daunting for many, however a student loan is vastly different from a personal loan.

Here are the key things you need to know about student finance:

When and how do you start paying it back?

• You only start paying your student loan back when you’re earning over the £26,575 (per year) required.
• What you pay is only 9% of the amount you earn over this sum, so if you earn £28,000 a year, you’d pay 9% on the £2,214 which is £192, or £16 per month.
• If you don’t earn over £26,575 you don’t pay it back until you do.
• So that’s: 9% of (Actual Annual Income minus the Income Threshold of £26,575) divided by 12 months = monthly repayment.
• This amount is deducted from your pay on a monthly basis in a similar way to tax of National Insurance.

Who’s eligible for student finance? 

To be eligible you’ll need to meet the following criteria:

• Hold ‘Settled’ status;
• Have lived in England for 3 years prior to starting the course*; and
• You don’t already have an equal level qualification from the UK or any other country.
• If you’re from Northern Ireland, Scotland or Wales you apply to Student Finance NI, Student Finance Scotland or Student Finance Wales respectively.

*EU/ EEA nationals will need to have settled/ pre-settled status for courses starting on or after 1 August 2021.