British undergraduate and PGCE students are eligible to apply for a college student loan. They have to apply for this loan through awards for Scotland (SAAS) or LEA (Local Education Authority). Once a student has signed an application for a loan, the amount of loan to be given to him is decided by SAAS or LEA.
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Qualifying Criteria
The total family income, income spent on the student, medical expenditures, any disability, etc., are expenditures taken into consideration. 75% of the total loan payment is given to the student with the rest held back to be paid to after one semester of his study. This is done just to test whether the student is sincere regarding his motives. Moreover, these loans are provided in three installments, each after a semester. These are just general criteria whereas loans also have specific terms and conditions. One can apply online for loans such as SAAS. A student has to meet the residency criteria set by SAAS as well. Since your local authorities may be able to pay a part of your fees, you can borrow money to cover the rest. Loan Providing Companies
A student can get college student loans from any financial institution, bank, or special financial institutions created to promote education. These loans can be researched by either subject or organization. There are loans available for students in specific situations including those studying a particular subject. Some loans are geared towards mature students while others take into consideration the fact that the student is dependent upon his parents. Companies such as the Student Loans Company (SLC) administer financial support to eligible students. They work with partners such as college associations to work out disbursement plans.
Payback Criteria
College student loans are paid back once the student completes his education and get employed earning £10,000 or more. The interest rate is updated according to the fluctuation in it annually. The loan is paid back according to the PAYEE method which has no set complete loan maturity date. Companies such as SLC offer loans that have inflation adjusted interest rates. These loans have to be repaid once the student starts earning more than 15000 year. One has to be careful when it comes to repaying such loans. Credit ratings can be adversely affected if a student meets the repayment criteria yet puts off making payments.
Note:
This year [2006], the loan system will be changed according to the latest notice. Generally, student fee will be abolished from the parents’ side and added into the student loan payment.
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