Everything you should know about student loans and accommodation
Some new students may find it difficult to handle their money while studying as they have never had a job before. A lot of people use student finance and loans to support their university lifestyle, particularly for student accommodation rent. So before starting university and moving to accommodation, it's important to be aware of key student finance information.
This guide will explore everything you should know about student finance and loans, including maintenance loans and how to manage these with accommodation rent.
What does a student finance loan cover?
Once you receive your university offers and decide where to study, you should set up an online account for Student Finance England. If you live in Scotland, you can apply for student awards through the Student Awards Agency Scotland. Visit their website for more information on the application process.
Your student loan is split into two parts:
Tuition fee loan
The tuition fee loan is generally paid directly to your university or college, covering your course fees. This is usually between £9,000 and £9,250 per year for full-time undergraduate courses at most institutions. By paying the institution directly, this ensures that your education expenses are covered without requiring you to manage these funds yourself.
Maintenance loan
The other part of your student loan encompasses living costs like accommodation, food, travel, and other day-to-day expenses. The maintenance loan is paid directly to you, typically in three instalments at the start of each term (September, January, and April).
The amount you receive depends on several factors, including your household income, whether you live at home or away during your studies, and if you are studying in London, where living costs are higher.
Whatever student accommodation type you choose, the maintenance loan will help cover this cost. Mansion Student provides private student accommodation across the UK. If you are paying with student finance, you have the option of changing your rent payments in accordance with your loan.
To do this, you will need to send a screenshot of your maintenance loan dates and amounts, as well as your entitlement summary to deferments@mansionstudent.co.uk, along with the name of the student accommodation property.
Find out more about managing student accommodation finances with our expert guide here.
How to apply for student finance
Applying for student finance in England involves a series of steps managed by Student Finance England (SFE). To start, you need to set up an online account on the Student Finance England website. Once registered, you can fill out the application form, which requires details about your course, university, and personal circumstances.
After submitting your application, it will be processed by SFE. This can take several weeks, so it's advisable to apply as early as possible to ensure your funding is in place for the start of your course. You will receive a notification of what funding you are eligible for, and you may need to provide additional documentation or evidence if requested.
Once your application is approved, you will receive a financial notification outlining the tuition fee loan and maintenance loan amounts. These funds will be disbursed directly to your university and your bank account, respectively, in alignment with the academic year schedule.
Top tips for managing student loan debt
1) Know the terms
Understanding the terms of your student loan is crucial for effective financial management. Different loans have different interest rates and repayment terms, so familiarising yourself with these details is important. Interest rates on student loans are tied to the Retail Price Index (RPI) and can vary depending on your income after graduation.
2) Monthly budgeting
Monthly budgeting is essential in managing your student finances. Start by calculating your total income, including your maintenance loan, any part-time work, and other sources of funds. Next, list your essential expenses, such as rent, utilities, groceries, and transport.
Subtract these from your income to see how much you have left for non-essential spending. Regularly review and adjust your budget to ensure you are living within your means and saving where possible.
3) Seek help and negotiate bespoke payment plans
If you encounter financial difficulties, seek help sooner rather than later. Universities often have financial advisors who can provide guidance and support. Additionally, many student accommodation providers and creditors are willing to negotiate bespoke payment plans if you explain your situation, helping you manage your debts more effectively without falling behind on payments.
For more information on our payment plans, browse our help page here.
During your stay at one of our Mansion Student properties, you will have access to an on-site hospitality team that can help you with any enquiries.
Contact Mansion Student today for more information, or arrange a viewing at one of our properties here.
4) Choose a reliable student accommodation provider
Look for providers who offer transparent pricing without hidden fees, such as rooms with all-inclusive bills. Consider factors such as the cost of utilities, internet, and other amenities that might be included in the rent. Ensure the location is convenient and safe, reducing the need for additional travel expenses.
How Mansion Student can help
At Mansion Student, we specialise in providing modern student accommodation in some of the UK’s most popular student cities. Our team looks to acquire, develop and manage suitably located properties and renovate them into functional spaces for our student tenants. This includes communal spaces, such as cinema rooms and outdoor areas, as well as sought-after facilities like gyms and laundry rooms. These are currently based at:
· Coventry
· Dundee
· Durham
· Leeds
Browse all our student accommodation locations here.
For certain payment plans (three instalments and monthly), our tenants require a guarantor. Guarantors take joint financial responsibility, acting as a safety net in an emergency where the tenant cannot pay rent. This may benefit you if you are concerned about managing finances with your student loan.
If you require more information or would like to speak to our team, contact Mansion Student here.
Frequently asked questions
How long does it take to pay off student loans on average?
Once you graduate, you will begin repaying your loan the following April. However, you will only start making repayments once your income is over the threshold; currently, this is £25,000 (for courses after August 2023).
The time it takes to repay student loans varies significantly depending on your income after graduation and the total amount borrowed. After 40 years, any remaining loan (plus interest) will be cancelled.
Are there student loans for international students?
International students are generally not eligible for loans from Student Finance England. However, they might have access to scholarships, grants, or loans from their home countries or through their chosen UK institutions.
It's essential for international students to research and apply for these funding opportunities well in advance to secure the necessary financial support for their studies.
