What Is a Student Loan?

A Student loan is a gateway to students who are looking to attend university. These loans are helpful to them who cannot afford the university fees. However, people need to be clear of confusions like the eligibility, and the process of student loans. I hope the below guide helps to clear all of your confusions regarding the whole loan process.  

Different Types of Student Loans?

Tuition fees loan Your university tuition fees are covered by this type of student loan. Apart from that, it will also cover the course fee that you are enrolling for. This type of student loan is not credited into your account. The university gets the fees directly from the Student Finance England on your behalf. Maintenance loan This type of student loan is provided to students which helps them to go through their university period. This student loan covers your living cost in the university, this includes your uni room rent, travel, food and other living costs. While providing a maintenance loan, the lender would decide the amount to be credited depending on your parents combined income. So, this student loan can differ in amount when it comes to all students. Some might get a high maintenance loan than the other students.

Who Can Apply for a Student Loan?

People who are full time and part time graduates can apply for a student loan. Also, people who are undergraduates and postgraduates can make use of this loan to pay off their tuition fees. However, taking out a tuition loan may depend on factors such as your course and university that you are opting for. It also depends upon your age and nationality. Maintenance loan can be given to full time and part time students only, which will help them to take care of the living cost at the university. This cost could include the cost of food, accommodation and travel. The maintenance loan is credited into your personal bank account, which you have to repay in three instalments which is one each semester.  

How Much Can You Borrow in a Student Loan?

The most important question when going for any loan is “How much can I borrow”, people often ask this question.  So, when it comes to student loans the amount which you can borrow in tuition fee loan will be the course fees of the university. This student loan is paid directly to the university by the Student finance England, you just have to provide the information that is needed. However, when it comes to maintenance loan, the lending criteria is different. The loan amount that you can borrow depends entirely upon your parents’ income and financial status. This student loan is directly credited into your personal bank account after approval. Not all students get the same amount in a maintenance loan.   So this is the whole process of a student loan. However, when it comes to repaying the loan, the student can start making repayments as soon as he starts a new job. The repayment amount is decided on how much you are earning monthly. So monthly repayments are quite flexible when it comes to student loans.   Read more: What Are Small Loans for Bad Credit?