There are three types of loans; the undergraduate, postgraduate and the Initial Teacher Training. Each category has specific guidelines in the application. In all the claims, the standard element is the agreement of repayment upon completion and the contractual authority. The loans are facilitated by the Student Loans Company (SLC).
The Student Loans Company
This is the body mandated by the UK government to facilitate loans and grants to millions of students in colleges and universities in the England, Northern Ireland, Scotland and Wales. Its roles are supporting higher and further education through timely remittance of tuition fees and other academic necessities that involve financing. With over £100 billion in circulation, the company attends to over 6 million applications, both physical and virtual. SLC works with England’s Department of Education, Scotland’s Department of Education and Lifelong Learning, Wales’ Department of Education and Skills, and Northern Ireland’s Department of Economy to provide its services. The SLC is responsible for information sharing to the target groups, offering financial support to students and develop loan repayments models with the HM Revenue and Customs. It also works as a policy creation outfit for the UK government in matters education and student financing.
Guide to Student Loan
The applicant needs to provide the requisite and truthful information. This data will help in implementation and subsequent action. The names, address, contact numbers, residence, bank details, insurance number, university/college and educational timelines are essential for the application. If there are any changes to the above, notify SLC, failure to which a 3% additional charge (above the RPI) will be administered. Also details about the applicants’ marital status, employment status, leave days and travelling abroad are supposed to be registered with SLC. For students from England, they can apply online. The application is open up to 9 months after the resumption of the course and may include maintenance loans and grants, besides the tuition fee loan.
2. Loan Processing
The above documentation must be complete and attached. The documents are screened by the Works and Pension Department and Her Majesty Revenue and Customs for certification. Any fraudulent documentation will be dismissed. Loan applicant under 18 years of age will be required to amend their agreement with SLC to avoid hiccups in subsequent loans application after attaining 18 years. The amendments are formal confirmation of the accords between SLC and the applicant. The amount will then be wired into the applicant account upon passage of the threshold.
Students from the European Union can also access tuition and survival loan. However, the applicant can obtain the loan to offset the living costs if he/she has been a resident of the United Kingdom 5 years before joining college. The loans are paid in advance to ensure that there are no disruptions with the schooling calendar. The loan can be cancelled due to disability, death or breach of contract.
3. Loan Repayment
Repayment takes into account two models; when the applicant finished the course and when he gets employed. Payment in the first model will be 9% of anything earned over £18,330 before tax per annum, payable from the next April in the subsequent year. The HMRC or the employer can administer this process. Deductions will be recorded on the payslip. In case the applicant is self-employed, the HMRC will send the applicant a self-assessment form to be filled, from which tax calculation will be generated. This will decide how much is to be paid towards the student’s loan. The applicant might choose to make voluntary payments.
In the second approach, the employer deducts an amount from the applicant’s salary to go towards the loan servicing. An income of £25,000 before tax and above per annum attracts a 9% deduction. Interests are charged from the first payslip until the loan is fully repaid, based on by UK’s Retail Price Index (RPI). For postgraduate loans, an additional 3% interest is charged on top of the RPI. If there are any complaints on loan, the complainant can either call their offices on 03001000601, email email@example.com or visit their offices at 100 Bothwell Street, Glasgow.