Help Paying student loans back Liverpool

October 28, 2016
Student essentials

It’s the time of the year when you need to start applying for your student finance, but it can seem a complicated process. Rachel Shan helps clarify what everything means

Whether you’re a brand new student or a continuing student, you should start your funding application* as soon as you can, but don’t panic: the forms are nowhere near as scary as they sound. If you are struggling with the forms however you can visit the funding team within Student Advice and Wellbeing who can assist you.

I can’t stress enough how important is to apply for your funding on time – I have previously missed the deadline and have been left without money way into the new academic year, not something anyone wants to deal with!

The other worry is the debt you are going to be in when you leave university. Debt is such a scary word; it always makes me think of debt collectors knocking at my door and tends to inspire fear in most people, plus I worried about getting a mortgage, if I was going to have huge chunks of my wages being taken away… But student debt is actually very different. The details vary depending on the type of student finance you get but this is how student finance breaks down:

Maintenance Loans

This is money that is loaned to you by the Student Loans Company (SLC) in order to help with your living costs. As this money is loaned it will need to be paid back, but you will not need to pay this money back until you are earning over £21, 000. (If you are paying the lower rate of tuition fees you will need start paying it back when you earn over £16, 910). The maximum amount of student loan you can receive is £5, 740 when living away from home, or £4, 565 if you are living at home.

Maintenance Grants

This is money based on your household income and it is given to you, meaning you will not need to repay it. The only time you would need to repay this money is if you withdraw from your course and have been overpaid. (You need to contact the funding team at Student Advice and Wellbeing if you are thinking about withdrawing.)

Maintenance grants are available to people with a household income of less that £42, 620. If the household income is less than £25, 000 you will be eligible for the full amount of £3, 387. Partial grants are made to people whose household income falls between £25, 000-£42, 620.

Tuition Fee Loans

This is money loaned to you by the SLC in order to pay your tuition fees. You will never see this money; it is paid directly to your university. You will not need to pay this money back until you are earning over £21, 000. (If you are paying the lower rate of tuition fees you will need start paying it back when you earn over £16, 910.)

Scholarships and Bursaries

If you receive a scholarship or a bursary this is money given to you by the university or a supporting body. This is money that will not need to be repaid.

It is obviously quite daunting, the prospect of being £27, 000+ in debt when you leave university, but it is important to remember than until you earn £21, 000 or above you will not need to pay it back. Even at this point the repayments are really quite low.

The table below shows the amount of money you need to pay back based on your wages. Also, if the loan isn’t repaid after 30 years (that time will go quicker than you think!) the debt is wiped clean. You can find a really useful calculator on the Student Finance website to help you work out how much you will pay back.

Annual Salary

Monthly Repayment

£19, 000

£0

£22, 000

£7.50

£25, 000

£30.00

£30, 000

£67.50

£35, 000

£105.00

£40, 000

£142.50

£45, 000

£180.00

£50, 000

£217.50

Source: blog.ljmu.ac.uk
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