Cheap Loans for Students (Student Loans Co.)

Member Name: Amyrlin

Product:	Student Loans Co.
Date:	28/06/00 (352 review reads)
Rating:

Advantages: Easy to get

Disadvantages: Stll have to be repaid

The students loan company has been set up to help student who are undertaking degree course with additional funds. The loan criteria is very good for a student as it does not involve credit checks, they will even give you a loan if you have adverse credit ratings, and over the limit bank overdraft and a country court judgement or two. The amount you can borrow depends on what part of the country you are in and the year of study. It is then paid to you in three separate lump sums at the beginning of each term.

The loans are granted against future earnings as they are not repayable until you are earning in access of 80% of the national average wage. If you are taking out a loan now it will be repaid through your employed earning by being linked to your national insurance number, and are repaid as a small percentage of your earnings over a long period of time.

For those who have recently left education the older style loans are repayable in a different fashion. The loans then become repayable over a period of five years only, and as such the repayment amounts each month can be heavy.

Just as any other loans there is interest charged, this is at lower rate than any bank, the interest rate charged is variable, but is based on the rate of inflation, therefore annual interest rates of 3.5% or lower have been common.

Some particularly sharp students have noticed that even if they don't need the money it may be worth taking out the loan and investing the money, then paying the loan back at the end in a limp sum and making a profit on the interest earned. This sounds good in principle, but takes an awful lot of self discipline, especially when you are a broke student, so whatever your intentions I would not recommend this.

If you need the money this is the cheapest source, apart from the intrest free overdrafts on student back accounts.

Summary: