Student loans in the United Kingdom

British undergraduate and PGCE students can apply for a student loan through Student Finance England or Student Finance Wales in England and Wales, the Student Awards Agency for Scotland (SAAS), or their local education and library board in Northern Ireland. SFE, SFW, SAAS, or education and library board then assesses the application and determines the amount that the student is eligible to borrow, as well as how much tuition fees, if any, the student must pay. The family's income; whether the student will be living at home, away from home, or in London; disabilities; and other factors are taken into account. From academic year 2009/10, 72% of the full loan (£2763 - £4988 dependant upon living situation) is available to all students in England and Wales, with only the final 28% being means-tested (taking the total available up to just over £4,950 for those studying outside London and £6,928 for those living away from the family home and studying in London). Scotland has a slightly different assessment method where more of the loan is means-tested with a minimum loan of only £840. However much you get, it is paid in three instalments during each year of the student's course (one per term). Special rules apply for some courses and for part-time courses.

Student Finance England

For all students whose 'domicile' (family or full-time home base) is in England, radical changes are underway to enhance and improve the student finance system. Now known as Student Finance England, this is a comprehensive new service which is being phased in between now (2008) and 2012 and is being based on widespread consultation with students, prospective students, parents and other 'sponsors' helping a student through university. It seeks to reduce significantly the amount of time and effort required to apply for finance and the system is being constructed in a way which joins up the main agencies in higher education in a way that has not existed hitherto. The time scale of application is being changed, so that a student will be able to apply for finance at the same time as they apply for a university place and information is being shared in such a way that repeated requests for the same student details will be got rid of.

First year students applying this year for a place in 2009 will have to deal with just two agencies - UCAS (to apply for a place) and the Student Loans Company, which will share much of the information supplied to UCAS and will then assess the applicant's eligibility for finance and make the appropriate payments. This service will be increased and extended to second and third year students in the subsequent two years until all applicants are assessed in the same way by SLC.

Already, student finance has been radically changed to make it much easier for people from less well-off backgrounds to attend university. Now, anyone from a home background earning less than £25,000 but not more than £60,000 after normal deductions is entitled to a maintenance grant, the size of which(up to £2,835) will depend on income. Also, those entitled to the full maintenance grant are automatically entitled to the full bursary at their place of study (which can be up to £3,000 but is typically £1,000 per academic year). This year, the maximum loan amount for studying in London is £6,928 and (away from the family home) elsewhere £4,950.

Reliable source: Learning and Development Trainer within The Student Loans Company/Student Support Regulations as publised by DIUS (now known as BIS - Department for Business, Innovation and Skills)