What is a Student Loan?

Not everyone is aware of what is a student loan? Student loans, as the name implies, are available to students who require help with living costs while studying.

Student loans are part of the government's financial support package for degree only students embarking on a course of higher education. For most students, a student loan is their largest single source of income. So unless you have very generous parents, you will need to apply.

Regardless of where you are studying, if you are from England and Wales you will apply to your Local Education Authority using an HE1 form. They will then calculate how much you're entitled to receiving - as well as working out whether you need to pay tuition fees.

They will then send you back a form that you need to forward to the Student Loans Company (the government organisation that administers your student loan) who will process your application. This usually takes a month, so make sure you get the paperwork done well in advance of the start of term.

Although it is only a loan, you'll never be able to borrow money more cheaply, so it's the most cost-effective way of borrowing money while you're studying to pay for all those bills. The interest charged is only equal to the rate of inflation.

Unlike support towards tuition fees, you have to repay any loans. The Student Loan is repaid after you graduate (or after you leave the course, should you leave before completing). Repayments are calculated on a sliding scale and are repaid monthly directly to the Student Loan Company.

Should your salary fall below Ł10,000 payments are suspended until you earn above this figure again whereupon you will recommence payments. Interest on the Student Loan is calculated at a preferential rate which is far lower than any commercial bank loan rates.

Loans have the unfortunate tendency to mount up your debt. If you take the full Ł4,000 a year for three years that means you'll be Ł12,000 in debt by the end of your course - and if you're on a longer degree programme, that total could be even higher.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Bad loans were legally hidden as Lenihan made pledge Irish Times The flaw allowed banks to conceal substantial losses on troubled loans. It reversed the pre-2005 rules under which banks were forced to recognise immediately, losses on bad lending. From 2005 onwards banks were required to wait until the borrower ... and more »

INDABA: Global Mining, Metals Loans, Bonds Rose In 2011 As IPOs Faded -E&Y Fox Business Bank loans for 2011 totaled $187 billion, with about half related to refinancing, consultancy-and-accounting firm Ernst and Young said. Bank loans were up 2% on the year while corporate-bond issues were up 16% on the year at $83.8 billion. and more »

President Obama's student loan debt relief plan goes into effect early Daily Sundial By Irene Nesbitt Graduate students received financial assistance from President Obama's student loan debt relief plan last month. Originally, this was supposed take place on Jan. 2014, but in the midst of the tuition and loan crisis students will see ... and more »

SBA lending returns to pre-boom levels Washington Post A steady flow of new loans backed by the Small Business Administration in the Washington area is helping some institutions return to the pace of lending that was common in the pre-boom years. Through the three months ended Dec. and more »

Daily Mail

'Pay-day' loans used to fund plastic surgery: Website deals linked to 'good looks' Daily Mail By Vanessa Allen Pay-day loan firms came under fire yesterday for offering unsecured lending arrangements to fund cosmetic surgery. Glossy websites promote short-term pay-day deals alongside unsecured loans to pay for operations including face lifts, ... and more »

Loan growth likely to moderate this year The Sun Daily PETALING JAYA (Jan 6, 2012): Housing loan growth continued to expand at a robust pace in December, although the true test of the sector's strength will be in January when tougher lending measures by the banking sector to control ballooning household ...

Change.org

Online Campaign Prompts Sallie Mae to Change Fee Policy for Loan Suspensions New York Times On Thursday, three months after Bank of America backed down from imposing a $5 monthly debit card fee in response to an online Change.org petition that collected 300000 signers, Sallie Mae, the nation's largest private student-loan provider, ... Sallie Mae will credit $50 fee to suspend loan paymentsWashington Post Jobless grads rap Sallie Mae over loan feeMarketWatch Student borrowers fight Sallie Mae's 'jobless penalty'Monmouth Daily Review Atlas all 202 news articles »

Bad loans rise at a faster clip Livemint Among the relatively large banks, gross NPAs of at least four banks—ICICI Bank Ltd, Union Bank of India, Central Bank of India and UCO Bank—in the December quarter were between 3.82% and 3.33% of their loan books. After setting aside money, ... Banks on sticky wicket as textile sector loans on verge of turning badEconomic Times Banks ask borrowers to cover their personal loans, overdraft facilitiesBusiness Standard Rise in NPA makes PSU banks lag private peersmydigitalfc.com Hindu Business Line all 12 news articles »

Banks to take a hit on US home loans Financial Times The Obama administration, which recently announced the formation of a new state and federal unit to investigate alleged frauds involving home loans and mortgage-backed securities, intends to use the threat of litigation against large US financial ... HUD Secretary Expects “Substantial” Payment of Foreclosure Fraud Settlement ...Firedoglake all 2 news articles »

PR Web (press release)

Payday loan advocate omits pertinent facts Columbia Daily Tribune What she failed to say is that her group is funded by the payday loan industry, the same group that sent threatening letters to churches across the state. Churches are speaking out in favor of capping the rate because they are all too familiar with the ... Same Day Payday Loan Introduces New “How it Works” ResourcePR Web (press release) all 7 news articles »