Student finance…

What is student finance?

Student finance is an organisation that lends money to students for tuition fee and/or maintenance loans. Typically the tuition fee is paid straight to the university so you don’t see the money, but the maintenance loan is normally paid via three instalments at the beginning of each term into your bank account which you are able to live off.

If you are on low income, are disabled or have children you may be entitled to additional financial support through a ‘grant’. A grant is a sum of money that you don’t need to pay back.

Information sourced from the Government website, if you'd like to register for student finance because you're about to start university click here

How to repay (interest etc.)

Loan repayments differ (Plan 1 or Plan 2) depending on when you started university. The loan repayment amount is 9% of your taxable earnings (providing your income is above the income threshold).

  • Plan 1: English and Welsh students, who started their course before the 1st of Sept 2012. Repaymentd start when you begin earning over £17,495 a year (£1,457 a month or £336 a week)
  • Plan 2: English and Welsh students, who started on or after 1st September 2012. However repayments only start when your income is £21,000+ a year.

The money advice service has an example of student loan payments:

  • Plan 1 repayments…
Annual income (before tax) Monthly income Monthly repayment
Up to £17,495 £1,457 None
£18,500 £1,541 £7
£21,000 £1,750 £26
£24,000 £2,000 £48
£27,000 £2,250 £71
£30,000 £2,500 £93

 

  • Plan 2 repayments…
Annual income (before tax) Monthly income Monthly repayment
Up to £21,000 £1,750 None
£22,000 £1,833 £7
£25,000 £2,083 £30
£30,000 £2,500 £67
£35,000 £2,961 £105

Information sourced from the Money Advice Service website