In the UK, student loans are pretty popular since the educational expenses for lot of students are dependent on these loans.
As a matter of fact these student loans are considered to be the only feasible option for students coming from low or moderate income families who want to pursue higher education.
These student loans are tailored in such a way that it incorporates the education expense, living expense, etc. It has been noticed that approximately 25% of the UK student loans are provided based on the income of the individual.
Loans in UK
In the last few years, the UK government has come up with various student loan options with affordable terms and can be easily repaid. These options were designed for students so that the student can repay the loan while they are studying.
There are several lending institutions in the UK that provide student loans. Each lender has a different requirement for lending the money, at times it also depends on the type of course that student is willing to pursue his/her education. For e.g. part time course, full time course, distance course, etc.
The loan amount also differs from person to person, this is based on the financial stability, merit of student and the nationality of the student. The study level does affect the loan amount along with other terms and conditions.
Unsecured personal loans for international students are those loans on which they would not have to put any asset as collateral. Unsecured loans are quite popular with students since most international students do not have any assets which can be used as collateral. There are several different types of unsecured loans for international students which are available in UK.
The terms and conditions for these loans would vary greatly depending on the loan provider. However, in most cases the rate of interest on these loans would be higher since these loans present a higher risk to the lender.
The loan amount for the full time students in the UK depends on the course opted by him/her, the place he lives in and individual profile and the terms of repaying the loan also vary.
Several kinds of student loans in the UK are provided by student loan companies are for Tuition fee loans this covers the entire cost for the tuition’s, grants offered for the cost of living, maintenance loans covering various living costs, etc.
Even bursaries and scholarships offered by universities and colleges also an important source for fulfilling the financial requirement. In most cases the total loan amount given to the student incorporates the maintenance loan and tuition fee.
The amount of the loan is directly paid at the beginning of the academic term, the repaying of these loans in the UK is carried out via tax system, the same applies to the students once he/she has successfully completed the course and has started earning.