Until recently university tuition fees in the United Kingdom was free, or minimal. The basic principle was for the students to shoulder some of the expense as they are the primary beneficiary. Moreover, the point was brought up that ordinary taxpayers who did not necessarily go to universities should not have to subsidize the education of those who choose to do so. The cost of affording a university education has almost tripled in the past years.
If you are planning to get financed on opting for college, you must know these crucial details.
- Universities are allowed to charge up to £9,250 per year as tuition fees. Full-time students are eligible for applying up to £8,700 maintenance loan on household income. If you are worried about financing, a debt consolidation loan for poor credit is also available, especially for students.
- By the end of your graduation, you could have up to £50,000 of student loan debt. Start making plans for repayment before you leave college.
- The loan repayment starts on the April after graduation or when you have an earning job paying over £2,500 per year, whichever falls before. The repayment rates are around 9% or over.
- Depending on your salary, the interest rate which is charged is at +3% per anum while you are a student, and 0-3% per anum post-graduation.
- Your employer will deduct the loan repayment amount on a monthly basis from your salary.
- Current students who started university before 2016 are eligible for Maintenance Grants because they received a smaller amount of loans.
- Students with disabilities, dependents are eligible for special funds and grants provided they have started university in 2018.
- Student loan is waived off after 30 years from the date of disbursement by default.