The Student Loans Company in UK is the primary source for getting student loans for undergraduate studies. The government provides grants and loans through this organization, which belongs to the public sector. The company was founded in 1990 and initially was meant to provide only very low interest loans to students to meet their living expenses. In 1998, with the introduction of Teaching and Higher Education Act, tuition fees came into play and the Student Loans Company started providing loans for tuition fees as well.
Now the Student Loans Company provides loans to more than one million students each year who study in universities and colleges across Scotland, England, Wales and Northern Ireland. The company is divided into four sections for the purpose of assessing the applications based on area. These four are the Student Awards Agency for Scotland, Student Finances England, Student Finances Wales and Student Finances Northern Ireland. Apart from providing loans and grants, the company is also responsible for repayment collection from persons who have graduated and earn over £15000 annually.
Student Loans Company was offering a mortgage-style repayment system up to the academic year spanning 1998-1999. Under this system the student was required to repay the loan in 60 monthly installments, irrespective of the loan amount. Although there was a threshold of minimum income for repayment to start, the system still proved to be difficult for many students who had taken out a much larger loan.
As a result, the system was changed to Income Contingent Repayment where the loan amount is directly repaid from the graduate's salary. The amount deducted from salary is 9% of the amount over and above £ 15000 earned in a year. These amounts are deducted until the loan amount is paid in full, or for a period of 25 years, up to a maximum of 65 years of age.
Tuition loans are given to students so they can pay the college or university tuition fees, in full, for the entire year. Maintenance loans are for meeting the living costs of a student who is attending undergraduate studies, or is in the initial part of a course providing teacher training. The Student Loans Company sets a threshold amount for maintenance loans that is determined based on the year of study, and the student residence while studying.
The full tuition loan is given to any student, while a part of the maintenance loan is given before assessment of the student's financial position. The financial assessment is based on total household income in addition to the income of the student, if there is any.
Apart from tuition and maintenance loans, the Student Loans Company also provides grants to the poorer section of society. One such is the Welsh Assembly Learning Grant, formed to help cover maintenance costs of poorer students living in Wales and pursuing a higher education. A poor household is ascertained by country and income threshold. Similar grants are also available such as the Special Support Grant in Northern Ireland, and the Maintenance Grant in England.
Now the Student Loans Company provides loans to more than one million students each year who study in universities and colleges across Scotland, England, Wales and Northern Ireland. The company is divided into four sections for the purpose of assessing the applications based on area. These four are the Student Awards Agency for Scotland, Student Finances England, Student Finances Wales and Student Finances Northern Ireland. Apart from providing loans and grants, the company is also responsible for repayment collection from persons who have graduated and earn over £15000 annually.
Student Loans Company was offering a mortgage-style repayment system up to the academic year spanning 1998-1999. Under this system the student was required to repay the loan in 60 monthly installments, irrespective of the loan amount. Although there was a threshold of minimum income for repayment to start, the system still proved to be difficult for many students who had taken out a much larger loan.
As a result, the system was changed to Income Contingent Repayment where the loan amount is directly repaid from the graduate's salary. The amount deducted from salary is 9% of the amount over and above £ 15000 earned in a year. These amounts are deducted until the loan amount is paid in full, or for a period of 25 years, up to a maximum of 65 years of age.
Tuition loans are given to students so they can pay the college or university tuition fees, in full, for the entire year. Maintenance loans are for meeting the living costs of a student who is attending undergraduate studies, or is in the initial part of a course providing teacher training. The Student Loans Company sets a threshold amount for maintenance loans that is determined based on the year of study, and the student residence while studying.
The full tuition loan is given to any student, while a part of the maintenance loan is given before assessment of the student's financial position. The financial assessment is based on total household income in addition to the income of the student, if there is any.
Apart from tuition and maintenance loans, the Student Loans Company also provides grants to the poorer section of society. One such is the Welsh Assembly Learning Grant, formed to help cover maintenance costs of poorer students living in Wales and pursuing a higher education. A poor household is ascertained by country and income threshold. Similar grants are also available such as the Special Support Grant in Northern Ireland, and the Maintenance Grant in England.
| The student Loans website has information about the student loans company to enable students separate the facts from fiction.The site contains everything the student needs to know. Article Source: http://EzineArticles.com/?expert=Peter_Charalambos |
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