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Student Loans In The United Kingdom

The Student Loans Company (SLC) is responsible for Student Finance England and is a delivery partner of Student Finance Wales and Student Finance NI. University Students resident in the United Kingdom are eligible for student loans and some students on teacher courses may also apply of the said loans. The Local Education Authorities, paid the students tuition fees and also provided a maintenance grant to help with living costs.

Student Loan Eligibility

In order to avail of the Student Loan, students must meet of the following requirements:

1. Personal eligibility principally concerns the student’s residency status.

2. The student must be studying for an undergraduate degree at a UK degree-awarding institutions or other verified higher education establishment.

To those students that are eligible for the student loan are also entitled to a maintenance loan to help pay for living costs whilst at university and they are entitled to a set amount. To those living at home entitled to less amount and more to those living at universities. The maintenance loan for the 2009/2010 academic year was set at £2,763 for students living at home, £4,998 for students living in London and for students living at universities elsewhere in the United Kingdom was set at £3,564.

Tuition Fee Loan

For the school year 2009-2010 and 2011-2012. The academic year universities were entitled to charge up to £3,225, £3,290, £3,375 respectively. For courses starting after the 1st of September in the academic year 2012/2013 the cap will be raised to £9,000 per year for full time students and £6,750 for part time students.

Major Problems

In 2009, there were some issues about the company (the Student Loan Company) that there were delays in processing applications of the student loans and it was further criticized in 2010. Such issues may include the following (the repeated loss of financial evidence, refusal to acknowledge that an applicant exists, sending schedules for entirely incorrect universities and in some cases years and failing to keep applicants informed.

Major problems continue to beset the repayments system, leading to many thousands of graduates overpaying on their loans because the Student Loan Company have on occasion neglected to inform HMRC to stop taking payments, so a further year of repayments even when the loan has been acknowledged as cleared. Poor administration is the mean reason and inadequate record keeping of the documents. The Student Loan Company have great difficulty identifying how much is owed by individuals. Due to negligence and very poor record keeping, some graduates have found that large sums of money, have gone missing in the records.

All students are advised to be very prudent about the Student Loan Company, and not take their word on trust due to these problems. The students should always check all paperworks and other important documents and ensure that the repayments are going in according to schedule and do not be afraid to complain or otherwise draw the Student Loan Company’s attention to the matter should they make a mistake”.

Megan Potter – has been a freelance writer for more than three years and has been writing about a variety of topics, including how to write a personal statement, business, communications, and the 4 powerpoint No-No’s, just to name a few.

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