Do not rely on funds from the Student Loans Company
Many students will be head off to university this month. This may be the first time they are fully in charge of their money with pay bill and budgeting. Do not rely on funds from the Student Loans Company that arriving on time. Regardless of income, everyone on an eligible course qualifies for 72 per cent of the maximum loan.
Loans comprise maintenance help and the tuition fee. At the start of each academic term, the money should be paid directly. The loan does not have to be paid back until the student is earning £15,000pa or more after leaves higher education. It is repaid through the tax system and the interest is calculated on the rate of inflation. The rate was 4.4 per cent for the period September 2010-August 2011. It is as RPI stood at this level in March last year.
It’s vital to have a current account already in place before leaving home with unreliable timing as to when such a loan will arrive. A cheque book, debit and credit card take time to come through. Banks close or on to college and university locations will become stretched for about five weeks from late September and so use the time now to open the most appropriate account for your needs and compare different packages.