Student Loan for Maintenance

You can take out a student loan to help with your living costs during term times and holidays. The amount of Student Loan for Maintenance you can borrow depends on:

• your level of income and the income of your household
• whether you live with their parents during your course
• where you study

All UK students are eligible to receive 75% of the maximum available loan regardless of their household income. This is known as the 'non income assessed' portion. You may apply for the remaining 25% depending upon your household income - this is the 'income assessed' portion.

The maximum Student Loan for Maintenance rates for non-final year full-time students in 2008/2009 are:

Loan amounts will be smaller for those students receiving a Maintenance Grant - read on for more information ...

The Student Loan for Maintenance will usually be paid straight into your bank account by Student Finance Direct (a service managed by the Student Loans Company in partnership with local education authorities and the Department for Education and Skills) in three instalments at the start of each term. Repayments will be due at the start of the new financial year (April) after you leave your course at a rate of 9% of your earnings over £15,000. This means that if you earn £20,000, you will need to pay 9% of £5,000, which works out to about £37.50 a month. You can repay more than this if you wish.

Outstanding loans are written off:

• when you reach 65 (for loans taken out before September 2006)
• after 25 years (for loans taken out in September 2006 or later)