Student Loans

All full time students are eligible for a loan to assist with their living costs.

Apply to your LEA at the same time as you apply for your fee contribution to be assessed. For independent students studying in London the maximum loan amount is £5,520, and a 75% entitlement of £4,260.

For students living with their parents the maximum loan amount is £3,485, and a 75% entitlement of £2,675. The amount varies according to the length of the academic year; all amounts quoted are for 2005-2005. 25% of your full student loan entitlement depends on your or your family’s household income. However, the remaining 75% of the entitlement does not depend on this.

The loan will be paid to you in three instalments, one at the start of each term.

You might not have to start repaying your loan until the April after you have successfully completed your course, and then not until your earnings are over a certain level, currently set at £15,000 (this is subject to regulation change) per year. You will then be required to repay 9% of your annual income over the set threshold.

Repayments will be linked to inflation but will not carry interest at the rate that banks and other lenders currently charge – the actual amount you pay back will broadly be the same in real terms as the value of the amount you originally borrowed.