If you are studying within the United Kingdom, then it may be reassuring to learn that there are a number of different loans available from government-backed and private companies which might help you to pay for your living costs and your tuition. The loans that you can get will depend on where and how you are studying, as well as other factors like your personal circumstances and household income.
There are loans for first-time students that can be applied for through one of the four student finance agencies available in the United Kingdom. However, you will need to ensure that you are applying for a loan for an approved program. These loans are designed to cover the costs of your tuition in full, and there are also opportunities for you to apply for maintenance loans that will help you to cover living expenses. The amount of maintenance loan you are given will depend largely on factors such as your household income.
Usually, these loans will only charge interest at the base rate to keep in line with inflation. Once you graduate and begin to earn money over a certain amount every year, the repayments that you need to make will be deducted from your salary in a way that is similar to paying standard income tax. However, if you become self-employed, you will need to calculate repayments as part of your tax returns.
Loans for Education from Private Companies
Although the most common solution for those in search of finance for the purpose of education and tuition is to consider getting a loan from a government institution, there are also loans available for tuition from private companies too. For example, these are the loans that are most frequently considered by people who are considering studying at a post-graduate level, or would like to complete their second undergraduate degree. Additionally, private loans can be the best option for people who are thinking of studying at a private college.
Crucially, if you do not have the money saved up to pay for these learning solutions yourself, you will have a few borrowing options available to you, but it’s important to note that you will need to ensure that you can afford the monthly repayments that are associated with loans from private companies. Unlike loans awarded by the government, these private loans are intended as a standard personal loan, which means that you will need to begin paying them back on a regular basis.
If you plan on studying full time and will not have a regular income to help you pay back the loan that you take out, then there’s every chance that you will not be able to afford a loan on a second undergraduate or post graduate degree.
Personal Loans for Students
One potential option that students can consider when they are trying to gather finances for their lifestyle and education, are personal loans. These are an unsecured type of loan, which means that they are offered in accordance with your credit score, and do not require you to place any items or assets up as security. To get the best rates or largest loans, you will need to have a moderately healthy credit report. Additionally, it can be difficult to obtain a personal loan as a student who has no credit.
With a personal loan, you will find that your monthly repayments are typically fixed, and you will be expected to pay them on time and according to the schedule provided if you want to avoid defaulting on your loan. Unlike student loans that are backed by the government, you will still be required to pay the monthly payments on these loans if you are not employed anywhere.
Student Bank Accounts
If you’re concerned about the concept of finances and being able to afford to live as normal during your time as a student, it may be worth considering opening a good student bank account that comes with a 0% overdraft. This is one of the best financial services that any person studying full time can get.
An overdraft is a financial product that allows you to spend more money than you actually have within your bank account, which should mean that you can withstand a negative balance up to a particular limit. This could mean that in some cases you can borrow small amounts of money for free.
Crucially, most student bank accounts will come with a 0% overdraft, but you will need to make sure that you ask your bank to authorize this overdraft to make sure that you don’t spend more than the limit that is given to you, otherwise you could end up paying interest and dealing with huge charges. Many student bank accounts will give you an overdraft limit that changes depending on your year of study. You should also be given a few years after your graduation to repay your overdraft before you are charged any interest.