Student loan for tuition fees
EU undergraduates starting in 2012
You don't need to pay your tuition fees upfront before you start your course. If you are studying for your first university-level qualification you can apply for a loan from the government to cover the cost of your tuition fees. You can also apply for a loan to cover your living costs while you are studying.
- Who is eligible
- How much can you borrow?
- Repaying your loan
- Interest rates on a student loan
- How to apply
Who is eligible
You are eligible to apply for a tuition fee loan if you are an EU national or the family member of an EU national.
How much can you borrow?
If you are an EU national and this is your first university-level course, you can borrow the full amount to cover your tuition fees.
If you have an EU passport but have been living in the UK for more than three years you may be able to apply for some help from the government to cover your living costs. Find out if you qualify on the Directgov website
Interest rates on a student loan
The government is proposing that whilst you are at university and up until the April after you leave university or college interest on your student loan will be applied at inflation (RPI – Retail Price Index) plus 3%.
After that the interest rate depends on your salary:
| Your annual salary | The interest rate on your loan |
|---|---|
| Less than £21,000 | RPI |
| Between £21,000 and £41,000 | From RPI to RPI+3 % on a gradual scale |
| Above £41,000 | RPI+3% |
Repaying your loan
You will only start repaying your loan once you are earning more than £21,000 a year. If your salary falls below £21,000 repayments stop – for example because of a career break or a period of unemployment. Repayments start again when your earnings go over £21,000.
Repayments are set at 9% of income above £21,000. So for example, if you earn £25,000, the 9% would apply to £4,000 of income. This would equate to a repayment of £30 per month.
Loan repayments will be deducted from your salary, normally through the tax system. Any loan not repaid after 30 years is written off.
An example of student loan repayment amounts
The table below illustrates how the government proposes the repayment system will work for students starting courses from 2012 onwards.
|
Annual salary |
Amount from which 9% will be deducted |
Repayment/month |
|---|---|---|
| £25,000 | £4,000 | £30 |
| £30,000 | £9,000 | £67.50 |
| £35,000 | £14,000 | £105 |
| £40,000 | £19,000 | £142.50 |
| £45,000 | £24,000 | £180 |
| £50,000 | £29,000 | £217.50 |
| £55,000 | £34,000 | £255 |
| £60,000 | £39,000 | £292.50 |
Source: Department for Business, Innovation & Skills March 2011
How to apply
You don’t need to wait until you have been offered a place at university to apply for your student funding. You should be able to apply for it from autumn the year before you want the funding to start. Check your student finance agency for the exact deadlines. You need to reapply for student finance each year of your course.
EU students must apply through the Students Finance Services Europe.
Find out more about student finance for EU students
For more information visit the DirectGov website
