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Student Loans

If you’re an eligible student doing a full-time higher education course, you can take out a Tuition Fee Loan to cover your tuition fees and a Maintenance Loan to help with your accommodation and other living costs.

Student Loans from the government: how do they work?

Student Loans are there to help with the costs of higher education.They’re issued by Student Finance NI, a service managed by the Student Loans Company in partnership with Student Finance NI and the government.

The interest on Student Loans is linked to the rate of inflation, so in real terms what you repay will be broadly the same as what you borrowed. There are two types of loan available - you can take out either or both:

  • a Student Loan to cover your tuition fees - called the ‘Student Loan for Tuition Fees’
  • a Student Loan to help with your accommodation and other living costs - called the ‘Student Loan for Maintenance’

Student Loan for Tuition Fees

All eligible full-time higher education students entering higher education in or after September 2006 can get a Student Loan for Tuition Fees.

The loan will cover any amount up to the full amount you’re charged for tuition fees. For new students studying in Northern Ireland - and most who started in 2006/2007 or later - this means up to £3,465 for 2012/2013. For new students studying in England, Scotland or Wales, this means up to £9,000 for 2012/13.

The Student Loan for Tuition Fees is paid directly to your university or college by Student Finance NI.

Student Loan for Maintenance

The Student Loan for Maintenance is there to help towards your accommodation and other living costs while you’re studying. The maximum loan rates for 2012/2013 are as follows:

Loan Rates Maximum available
London £6,780
Elsewhere £4,840
Overseas £5,770
Living with parents £3,750

Loan Rates are slightly higher for students living in London (and not in their parental home) to accommodate the higher cost of living there. Your Education and Library Board (ELB) will decide whether you will be entitled to the London loan rates on the basis of the post code of study. If you are unsure whether you come into this category, your ELB will be able to advise you.

Student Finance NI will usually pay the money into your bank account in three instalments - one at the start of each term.

How the Student Loan for Maintenance works

All eligible full-time students can get a Student Loan for Maintenance, but the exact amount you can borrow will depend on several factors - including your household income, where you live while you’re studying and whether you’re in the final year of your course. It’s also affected by any help you get through the Maintenance Grant (though not the Special Support Grant).

Working out whether you can get the maximum loan

You can take out around 75 per cent of the maximum Student Loan for Maintenance regardless of your household income - this is called the 'non income assessed' part of the loan. Whether you get the remaining 25 per cent - the 'income assessed' part of the loan - depends on your household income.

Repaying Student Loans

Your first repayment will be due in the April after you leave your course (the start of the new financial year). You’ll repay nine per cent of your earnings over £15,795 (or the monthly or weekly equivalents) - but you can repay more if you want to clear your loan faster. The more you earn, the quicker you repay the loan. So, someone earning £22,000 a year (the average starting salary for a graduate-level job) will have to pay back nine per cent of £6,205 (£22,000 minus £15,795). This works out as £46 per month. For more details, see ‘How and when you repay your student loan (courses starting from 1998)’.

Interest on Student Loans

Student Loans accrue interest from the date they are paid out, up until the date when they are repaid in full. The interest rate for student loans usually applies from 1 September to 31 August each year.

Effect on other financial help

If you get income-related benefits or tax credits, the Student Loan for Maintenance will be counted as income when working out what you’re entitled to. This will be based on the maximum amount of loan you're entitled to borrow - even if you choose not to take it out.  

If your circumstances change

If your circumstances change – for example, if your income goes up or down - it's important to tell your local Student Finance NI office.

How to apply

You apply for a Student Loan when you fill in the main application for student finance. Applying online is the fastest and easiest way to do it.

Can you get a Student Loan as part of the standard student finance package?

You'll qualify for the standard student finance package if:

  • you’re doing a full-time higher education course, or a full or part-time Initial Teacher Training course, and
  • you, your course and your place of study are eligible

To qualify for a Student Loan for Maintenance, you must also be aged under 60 when you start your course. There’s no age limit for the Student Loan for Tuition Fees.