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    Hi, I could really use some help understanding the purpose of a student loan is?

    Are you given a sum of money at the beginning of the 1st year to spend on food and cloths ect, or given an overdraft that pays for the yearly study fees (£9000)

    Also in terms of accommodation are you asked to pay this weekly or do you just 'stick it on the bill'.

    Thanks
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    Basically there are 2 different parts, the tuition fee loan and the maintenance loan

    Tuition fee loan - This is paid directly to the uni by student finance, you never see this money and as long as you sort out student finance in time your uni should never ask you for it.

    Maintenance loan/grant - This is paid directly to you in 3 termly instalments, one in september, one in january and one after easter (depends on your uni's holiday dates) This is made up of a mixture of loan and grant (you don't pay back a grant). What you get depends on your parents income. This is what you use to pay accommodation and all living expenses. How you pay accommodation will depend on your uni, mine asked for a terms rent at a time when I was in halls. Now I'm in a student house and we pay our rent monthly.

    Hope this helps
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    (Original post by Walex12108)
    Hi, I could really use some help understanding the purpose of a student loan is?

    Are you given a sum of money at the beginning of the 1st year to spend on food and cloths ect, or given an overdraft that pays for the yearly study fees (£9000)

    Also in terms of accommodation are you asked to pay this weekly or do you just 'stick it on the bill'.

    Thanks
    There are three elements to Student Finance.

    1) Tuition Fee Loan. This will cover your entire tuition fee for the duration of your course. It gets paid direct to the uni and you never see it. It's a maximum if £9000 a year, but so are UK degree tuition fees.

    2) Maintenance Loan. This is money which is loaned direct to you. It's paid in instalments each year of your degree, so you can't get it all at once and blow the lot! You can spend it on anything you want, although it's intended to help with living and studying costs like rent, food, bills, transport, stationery etc. There is a minimum Maintenance Loan which everyone gets. On top of that, there is a variable means-tested amount which you might get, depending on your household income. The lower your household income, the more you will be loaned. Student Finance assume that your parents will help you financially.

    3) Maintenance Grant. This is again paid directly to you and can be spent on whatever you want. Only students from lower income households get this. The amount is variable and means-tested on your household income. The Maintenance Grant is non-repayable.

    The Tuition Fee Loan and Maintenance Loan are repayable. Interest is added from the start of the loans. You begin paying them back after uni, once you start earning £21,000 and over. If you earn less than that, then you don't make any repayments.

    You can get an idea of how much Student Finance you might get, using the official online calculator.
    https://www.gov.uk/student-finance-calculator

    You pay for your accommodation out of your Maintenance Loan/Grant, so it's very important to be sure you can afford it before you sign anything. At most unis, you will live in uni Halls for your first year. You sign a contract for the academic year and generally you pay a lump sum of rent at the start of each term or semester. After the first year, you will be expected to find your own rented accommodation around the uni. You should expect to pay your rent and bills monthly.

    Your rent is nothing to do with Student Finance. They give you money intended to help with rent and bills. Once you have it, it's your responsibility to budget so that you can pay them.
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    The amount of maintenance loan you get also depends on where you study and where you live.
 
 
 
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