Student Loans

Student loans in the UK largely are provided by the government run Student Loans Company. Interest rates begin to accumulate on each loan payment as soon as the individual receives it, however payment isn’t needed until the beginning of the following tax year after the student completes their education.

Ever since the late 90s, payments have been collected by HMRC and are determined based on how much the debtor is earning.

Getting A Student Loan

Getting Started

If you’re a new student, then visit the Directgov website to register for a student finance account and fill in the online application form.

Proving Your Income

You might have to give proof of your identity or household earnings if asked

The Application Form

To complete the application process you will be sent a loan declaration. You must sign and return this in order to verify that you are happy with the loan you’re making an application for.


The student loan application deadlines are different each year, so make sure that you check prior to applying.

Paying Off A Student Loan

If you are a full time student who is studying at university, you’ll begin paying off your loan when you have finished your university studies. However, during your time of study, you will be required to pay off the interest. The interest may be charged to your bank account.

You will be given a period of grace for capital payments if you’ve finished your studies, community service or internship. Should you be a part-time student you’ll have to pay back your loan whilst at university. Payments every single month have to be made by direct debit. You will need to start repaying your student loan instantly, if you do not complete your studies.

Once the student loan is in repayment mode the monthly repayments remain unchanged. If you’re a part time student the payment will change if you raise the limit of your loan whilst at university. The repayment period of the loan will be affected by one or more of the following:

  • Interest rate fluctuations
  • Paying more than the minimum payment

Interest Rates On Student Loans

You’re charged interest on your student loan from the time your first payment is made by Student Finance England (SFE) until you pay back your student loan fully. The interest rate charged depends on the Retail Price Index.

If you began university on or after the beginning of September 2013 the interest rate on your loan will be figured out as follows. While you are at university the interest rate on your loan will be RPI (Retail Price Index) plus 3%.