Guide to Student Loans
A Student loan is a great way to cover education costs, covered by the government and often available to those with no credit, they can allow you to persue your education without the financial strain. Find out the need to know information.
Student loans in the UK are sponsored by the government and are available to aid college students who are otherwise incapable of paying for tuition themselves. The government grants student loans for the betterment of society. Ensuring that anyone who wants to go to college can go to college is an invaluable tool in improving the country as a whole. Moreover, lenders are more likely to give student loans to high-risk borrowers (such as those with no credit) because they have the insurance of a government underwriting.
There are different ways to go about obtaining a student loan in the UK and it depends on whether or not a person will be studying full time. All students should note on their college application whether or not they intend to apply for student loans or grants. This will ensure that the proper information packets are received in time. From there, full time students need to apply online or in person at the university. This application is called a PN1 form and it should be completed and turned in as soon as possible, as deadlines are strict.
Students who are seeking financial aid but are studying only part time need to fill out a different form: the PT1G. This application will need to be completed once every school year and, upon approval, the amount one receives depends on the courses taken and how many hours the student is attending. Part time students are asked to turn in their PT1G when they begin their courses. After two weeks of attending class, the university will complete one's application, as they must first verify that the student is attending class there.
Anyone who lives in England and is seeking higher education there can apply for a UK student loan. However, not everyone will qualify. Only those with "settled status", i.e. they normally live in England, will qualify for a student loan. In addition to the residence qualifications, one must be under the age of 60. If a student is returning to college and has received financial aid before, this may affect a person's eligibility, too. Finally, one must be attending an accredited university and be working toward a degree, diploma or certificate.
Student loans are designed to be as fair to students as possible. As the government wants to give everyone in the country an honest chance at attending college, the restrictions on a student loan are much more lenient than any other kind of loan. Also, interest rates are quite low and a student receives a grace period after graduation before he/she has to begin paying back the loan. This gives the student time to start a career first, thus improving one's financial status before being burdened with repaying the student loan.
Written by Amy Cottrell for UKLoansPortal.co.uk