What are student loans?

Student loans are available to those entering higher education to help them meet their living costs while studying. The loans are fixed at a low interest rate and are issued by the Government through the Student Loans Company; for most students they act as the main source of financial support (although some parents might argue otherwise!).

The amount of a student's maintenance loan depends on where you live and where you are studying. The maintainance loan amounts available for 2006 entrants are as follows:

Maximum full year loan rate -

      Student living at home                     £3,415
      Living away from home in London           £6,170
      Living away from home outside London       £4,405

Maximum final year loan rate -

      Student living at home                     £3,085
      Living away from home in London           £5,620
      Living away from home outside London       £4,080

Maintenance loan entitlement for maintenance grant recipients will be reduced by up to £1,200 as up to £1,200 of the maintenance grant is paid in substitution for part of the maintenance loan (which has the effect of reducing the debt for lower income students by up to £1,200 a year).    

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