FINDING STUDENT LOANS

There are three ways to get a student loan. First is through the government. Next is through the finance section of the college or university you are attending, and third is through private credit companies.

Of the three the Student Loans given out by the government is the best so far. Not only do they have a wide range of loans geared both for full-time and part-time students but they also take into account the special needs of certain students like those with kids and those with disabilities. Student Loans from the government are also by far the easiest to repay with their great repayment schemes that won’t leave you harassed.

Funding through the college or university is usually socialized and is ok but they usually get their funding for loans also from the government so you might as well apply for loans directly to the UK government.

Student loans offered by credit companies can be pretty hard to get approved if you opt for a secured loan. There are, however, companies that offer unsecured loans and you can easily get your student loan approved there. The problem however arises during repayment time since loans from credit companies usually have high interest rates.

AVOIDING STUDENT LOAN SCAMS

Yes you might be in real need and you might be tempted by an offer that a “credit company” is giving you. Before you do go for it make sure you take a step back and rethink because the offer just might be too good to be true.

To avoid victim of student loan scams or any loan scams at that all you need is a little research and common sense. First thing you should do is to do a little research. Just shop around and compare the interest rates different credit companies give for the amount of money you wish to loan. Make sure you note the difference in rates for those that require security and those that give unsecured loans. For sure unsecured loans will have higher rates. After comparing all you need is common sense to see if a certain company’s interest rates are just way too high. They are guilty of overcharging and you can file a complaint against them. Go for the company that will give you low interest rates but that also has an affordable monthly repayment.

Student loans and grants are for full-time students only. As soon as you have applied for your course you should send in your application for loan too. You need not wait for your course application to be confirmed because if it is not it’s very easy to cancel your loan. On the other hand if your loan application gets delayed the money you need might not arrive in time for enrolment, which would cause you a lot of trouble.

The first step in your loans application process is the submission of the application itself. Make sure that all the required details are filled in and that your parents or spouse, who will also be required to fill in the application form for their income details, have also filled in all of the necessary details. Make sure that all the details are accurate as well since any inconsistencies can result in your application being turned down.

Upon submission of your application form your local authority will then review your information and assess the amount of financial help you are entitled to.

After being assessed your Local Authority will then submit their recommendation of just how much you are entitled to loan to Student Finance Direct. Student Finance Direct will then be responsible for contacting you and giving you the details of regarding the amount to be paid to you and the date in which you can expect to receive your loan.

The date when you will receive your loan depends on the accuracy of the bank details you have submitted to Student Finance Direct as well as the date for your course’s registration. Confirmation of loan approval usually arrives within 6 to 8 weeks after the submission of loan application but may be delayed if there are any difficulties encountered in the loan process like incomplete details in your form.

When you register for your course all you need to bring is the Financial Assessment which will be mailed to you by your local authority and the Payment Schedule Letter, which will come from Student Finance Direct. Your place of study will then contact Student Finance Direct to have the first payment released. Release of payment is automatic and takes about 3 to 5 working days to be cleared.

Income assessment is an essential part of the loans process. It is what determines just how much you can receive based on your household income. Income assessment is not required if you are merely applying for a Student Loan for Fees since fees are considered as part of the basic amount of financial help that a student is entitled to. However if you are applying for a Student Loan for Maintenance then your loan application will require you to undergo an income assessment.

Income assessment is based on certain details you and your parents or spouse will be required to submit. This of course includes the amount of income you, your parents, or your spouse made the previous year. Other details like the number of your siblings or children will also be considered as they will determine what your residual income or household income is. The residual income then determines how much your own household will be expected to contribute to your studies and how much financial aid you are entitled to.

Other factors that contribute to the computation of the financial aid you will be entitled to include the place where you will be studying, your living condition (if you’ll be living at home or not), and whether it is your final year at school or not.

If you have a low household income it would be best to apply for a grant since you will most probably get the maximum financial aid available. On the other hand if you have a high household income it would be better to apply for a Student Loan for Maintenance since even though you won’t be eligible for a grant you’ll still be approved for around 75% of the available Student Loan for Maintenance. This is because as a high income household you have the ability to pay for your college loan and like in any financial institution the ability to pay determines how much you can loan.

For those interested in finding out just how much loan they will be approved for you can head on to Direct.gov and use their Student Loan and Grant Calculator. Note though that the calculator will only give you an estimate and not the exact amount you’ll be entitled to.