International Student Loans in UK

The U.K. offers many prestigious educational institutions and opportunities for future employment, so not only residents of the country may be interested in studying. But a world-class education comes at a price. Average university tuition fees in Foggy ALbion are well over 20,000 pounds (22,916 U.S. dollars). Education in the U.K. has always been considered expensive (that is not even if you do not add rent and other living costs).

It is only logical that students need financial aid to complete their courses. It is particularly true for international students. What can you expect in this situation?

Student loans: What do you need to know?

Whether an international student can receive a student loan depends on their citizenship. Suppose he is a student from the European Union (Germany, Italy, France, Sweden, etc.). In that case, part of the cost of education is covered in the same way as students from the U.K. Simply put, he will pay no more than 9,250 pounds ($10,600) a year for university tuition.

In addition, a foreigner can get a government student loan for higher education. With its help, it will be able to cover the cost of study and living if you get a bachelor’s degree. Note that student loans are not paid directly to the student. The money is transferred to the account of a certain university, and the student has to pay it back in several stages after they finish studying there.

In addition, many degrees provide access to financial aid for international citizens. These may include the first degree, for example, B.A., BSc or BEd, an essential degree, the highest national certificate (HNC), the highest national diploma (HND) and others.

Also interesting is the fact that if an international student from the E.U. wants to study in Scotland, he can not pay for it. The costs are covered by the Scottish Student Awards Agency (SAAS). This program applies to first degrees and PGDE courses.

What types of international student loans are there?

Student loans can be different. There are several types of financial aid available in the U.K. for international students who want to pursue higher education:

1. Support from the government. If a student is a resident of the European Union who has come to the U.K. to study, they can get a government loan for their education. Presented students can get a bachelor’s or master’s degree loan if they have lived in the European Economic Area for more than three years since they started their course. Also, an E.U. citizen who has lived in the U.K. for more than five years can get a tuition credit.
2. Assistance from another state. For example, if a student from the USA wants to study in the U.K., they can get a study abroad loan or a loan for international students. A loan can be obtained by someone who goes to a U.S. school or is in a short-term program. U.S. students can only get a loan for full-time study.
3. Grants and scholarships for international students. You can qualify for this aid only if the student has qualified. He must examine his capabilities and eligibility criteria for the chosen place of study. It is also worth carefully preparing a comprehensive application for a grant or scholarship. Get more helpful information on the British Council Study U.K. website.
4. Student overdrafts. Most student bank accounts offer optimum overdraft terms on an interest-free basis while you pursue your higher education course (in some situations, this offer is also available for a short period after you have completed the course). But this is only available to some international students. Often the interest on the loan goes up after a year has passed since graduation, so repayment will have to be tight.
5. Foundations. In the U.K., many education authorities provide loans to international students. Often this option is the most affordable possible. So first, it is worth checking whether the selected institution has a special fund for international students.
6. Student Loan Cards. Many banks that have student accounts offer them unique credit cards. To get one, you must have a student account. With credit cards, you can avoid overdrafts and other loan charges. The card offers a 55-day grace period without interest. But in this situation, it is worth paying off debts promptly.
7. A loan from a specialised lender. Loans from selected lenders are also available to international students. Those wishing to pursue higher education can apply for education loan money for £2,000-60,000. This loan must be repaid within an agreed period, which must be no more than ten years from the date of the degree.

How to get student loans in the United Kingdom?

During the application process, international student lenders check their creditworthiness and analyse their credit history. It is mandatory to understand the student’s reliability as a borrower. The higher a person’s credit rating, the more likely a student loan will be approved.

Credit history is not transferred from another country to the U.K. Therefore. Your past credit history is unavailable to U.K. lenders. But at the same time, there are specific ways that you can significantly increase your chances of getting a student loan by improving your credit rating. First, you need to contact your old bank to see if it has any branches in the U.K. If they do, it will be easier for the student to get a student loan from that bank since they can already prove a good credit history. If your bank does not have branches in the U.K., you should still contact them to ask for a credit history reference, which can be given when you apply for a loan from the bank.

Student loan repayments: what do you need to know about this?

Many international students are happy to take out a student loan for their higher education. But it would help if you also considered that the time of its repayment would surely come. In this situation, specific questions may arise.

The first thing you should determine when you apply for a loan is the terms and conditions of the loan. Look at the loan documents for all your loans, so you’ll know the balance, the amount of the monthly payment, and how much you still have to pay. You should put this information into your monthly budget.

You should also make sure you choose the repayment plan that is best for you. Start payments on a student loan can be based on a ten-year basic repayment plan, where the monthly payment stays the same for the rest of the loan. A repayment plan can also be different:

• Staggered. In this situation, lower costs are calculated first with gradual increases. It is best if the student plans to have more income.
• 30 years. The student can extend the loan period to 30 years with lower payments. But in this situation, the student will pay more interest than a traditional 10-year plan.
• Income-based. This plan is available for federal loans. They are most often available to borrowers with a significant loan balance.

Students can choose the best repayment plan, depending on their financial ability.