Many people around the globe wish to study in the UK. Currently, there are several international students enrolled in the universities here.
If you are also aspiring to get enrolled in an education course in the UK, you may be overwhelmed. But, along with benefits, there are high costs involved in education.
Many students are worried about the education cost and do not get themselves enrolled. Although there is financial aid available for students, many of them do not know about it.
If you look into the topic deeply, you will get to know the different funding options and availability of loans.
How can you avail of student loans?
If you are also planning to go for your education in the UK, you may have to avail student loan for it.
With the affordable fees, things may be easier for you. But if you are willing to go for an external funding option, you are at the right place. Usually, education loans for students in the UK can be availed from a direct lender and are affordable and have lower interest rates.
Along with this, they have flexible payment plans and minimal documentation. Students can quickly get their loans approved by fulfilling all the factors. With timely approval, the loans reach the students on time, and they can pay off their fees.
But before availing of the loans, it is essential to prepare your budget. Since repayment is very important in these loans, budgeting your finances is crucial. Let us look at some of the eligibility criteria and the expenses covered in the education loans.
The need for student loans
If you are willing to study in the UK, you must be aware of its educational facts. The UK is one of the most expensive cities to study in. Although many destinations offer good educational courses abroad, the UK is the most expensive one.
The total cost involved in these courses is high, including the tuition fee and the cost of living. Along with this, several other costs, such as food costs, transportation costs, and other miscellaneous expenses, need to be catered to.
This can make any student feel financially constrained. Some of the reasons to avail of loans for students are mentioned below.
- Interest rates
Educational loans are affordable. In a personal loan or a car loan, the interest rates are way higher than on any educational loan.
Further, government banks offer more benefits to students awaiting these educational loans.
- Tuition costs
In an educational loan, all the fees are covered. If we talk about other loans, there may be several fees, missing such as tuition fees, transportation fees, and food expenses.
But in educational loans, every aspect is covered relating to the students.
- Unburdening your parents
Most of the students have a reason to avail of their educational loans to unburden their parents. Many parents usually sell off their assets or keep mortgages or collateral to pay off the fees for their children.
As against this, many students avail of educational loans to be self-sufficient and pay off their study money on their own. Students can also get a secured loan by keeping some form of security.
Mostly, education seekers avail of payday loans for students with bad credit. These loans cater to the credit score of the students as well. Hence, they keep on working odd jobs to repay these loans.
In the UK, a student loan quickly covers every aspect of student expenses. Additionally, it is a safe and timely way to fulfil the admission criteria.
Along with this, other requirements that are essential for student day today’s life are also included in this.
Eligibility Criteria and Requirements for Student Loans for the UK
The student loans that are available in the UK have similar criteria. Every student needs to fill in this eligibility criterion for an education loan. Only then can they avail of the loan.
- The student availing education loans must be a resident or should have validated residential proof. Without this, it can be tedious to avail of education loans.
- In addition to this, the age should be between 18-35 years. There is a specific age limit that applies to these educational loans. Not everybody can avail of this. If you lie between these criteria, you can avail of such loans.
- Confirmed admission to any recognised university or institute makes your loans much more accessible. With admission, it is confirmed that you will be studying and requiring money.
- A co-applicant is a crucial factor in the case of students. Since they have no income, the lender needs a co-applicant to safeguard their lending. It can either be parents or spouses.
- Another source is that go applicants should have a good source of income. Without stability, the lender can be dizzy and may not offer education loans.
Types of Education Loan
Generally, there are two different types of loans available for education.
- Collateral Education Loan
A collateral education loan is a common form of loan that is prevalent. In this, the student needs to put any tangible or intangible asset that they have.
It can either be in the form of fixed assets or digital assets. If there is no security, the lender may be reluctant and providing these loans.
- Non-Collateral Education Loan
The second form is a non-collateral loan. In this, the loan is unsecured and does not require any form of a mortgage.
The lender usually provides these loans to students without having any form of security.
- Bad Credit Student Loans
These loans are usually offered to students who are already dealing with a bad credit score. If they are repaid on time, it can help build up the score of the students in the long run.
Conclusion
Studying in the UK can be a significant factor for many students. But due to monetary constraints, most students cannot pursue their careers and ambitions.
With student loans being readily available, many students can now think of studying in the UK and making their career in their desired field.
Jessica Rodz is the Senior Content Writer at Cashfacts. She has a long career in the field of content writing and editing. Jessica has the expertise in the UK lending marketplace where she has worked with 7 different lending organisations and acquired many responsibilities from preparing loan deals and writing blogs for their websites.
At Cashfacts, Jessica is managing a team of experienced loan experts and doing a major contribution in guiding the loan seekers via well-researched blogs. She has done graduation in Business (Finance) and now currently doing research papers on the UK financial sector.
