What is a Maintenance Loan? How can I apply? How much may I get? Most undergraduate UK students can get this type of loan to help pay for their living costs. They will receive payments throughout the year, for an amount that they will eventually have to repay. This Your Benefits article will walk you through everything you need to know about the Maintenance Loan.
What is a maintenance loan?
The maintenance loan is a kind of student loan. It is provided by the government. Additionally, its aim is to help cover certain students’ living costs. This can include anything from food, rent, bills, as well as costs that come from more recreational activities.
You may be hesitant in taking out a loan. However, this should be manageable if you are careful enough. Additionally, it may actually be a good idea to get both the Maintenance Loan and a Tuition Fee Loan.
Can I get a Maintenance Loan?
There are a few factors that dictate whether or not you can get a maintenance loan. However, note that most undergraduates beginning their course in university are eligible for some payments. The four factors that determine your eligibility are as follows:
- Your college or university, as well as the course that you take;
- Whether you were a student in the past or not;
- How old you are;
- Both your residency status and nationality.
Lets’s start with your institution. They must either be listed or recognized. This is pretty straightforward, and your college, university or other institution will most likely be eligible under this criteria.
Then, the course you are partaking in must be a qualifying course for the maintenance loan. There are a lot of undergraduate courses that can qualify you, so this is also likely not a problem. However, note that your eligibility might change if you are a part-time student.
Am I eligible if I previously studied in another course?
Second is whether or not you were previously a student. Normally, only those taking a higher education course for the first time will be eligible to receive a maintenance loan. However, there are exceptions, and the rules have some nuance.
You may have previously dropped out from a course. You may also be resitting a year. If this is the case, you could still qualify to receive a maintenance loan.
Let’s take an example: you are applying for a four-year course. You might think that you qualify for four year of funding. However, let’s say that you studied on a different course for two years. If this is the case, then you would be eligible for Maintenance Loans for only two years.
Finally, having completed a degree does not fully disqualify you from getting Maintenance Loans. Not everyone will be able to receive them in this situation. However, it does apply to students who were able to ‘top up’ their qualification, or who are taking certain courses. The Gov.UK website contains a more detailed list.
How does my age and nationality impact my maintenance loan eligibility?
First, the only limit to age is for those 60 years or older. Even then, if this is the case for you, you could get partial payments if you are a full-time student.
Then is the eligibility in terms of nationality. You may be a UK national, have a ‘settled status’, and have lived for three years in the UK, the channel Islands or the Isle of Man before your course began. If all of these apply to you, you are likely to be eligible.
There are exceptions. For example, if you are a stateless person or a refugee, you may still qualify. Although most students in university will be able to qualify, check in with your funding body with any question. Indeed, it is very likely that they will be able to help.
How much is the maintenance loan?
Maintenance Loans, unlike many other benefits, need to be paid back. However, knowing this, the size of the payments that you will receive depend mainly on three factors:
- Where you are from (inside the UK)
- Whether or not you live at home
- Your household income
In terms of the first point, it is because every country in the UK manages their student aid through their respective funding body. The body you need to contact is the one in the country in which you normally are when not at school. Then, in most countries in the UK, outside of Scotland, living away from home means you will likely receive more funding.
Third, those with less household income are likely to receive more aid. Logically, then, those with a higher household income are entitled to less. Your household income could also make you eligible to earn more Maintenance Grant.
There is a certain amount maximum maintenance loans can be. More specifically, the following:
| Maintenance Loan amounts you can receive for living costs in 2022 | ||
|---|---|---|
| 2022 to 2023 academic year | 2021 to 2022 academic year | |
| You are at or older than 60 years old on the first day of the first year of your academic course | £4,106 or less | £4,014 or less |
| You spend a year abroad and studying for a UK course | £11,136 or less | £10,886 or less |
| Living in London, apart from your parents | £12,667 or less | £12,667 or less |
| Living outside London and apart from your parents | £9,706 or less | £9,488 or less |
| Living with your parents | £8,171 or less | £7,987 or less |
Furthermore, if your household income exceeds a certain limit, you will only be eligible for the minimum amount of Maintenance Loan. They are as follows:
- Your household income is more than £58,220 and you live at home: the minimum Maintenance Loan amount for you is £3,516;
- Your household income is more than £62,286 and you live at home but not in London: the minimum Maintenance Loan amount for you is £4,422;
- You have a household income superior to £70,004 and you live at home inside London: in this case, the minimum Maintenance Loan amount for you is £6,166.
How will I get the maintenance loan?
Like most other benefits, payments go straight to your building society or bank account. More specifically, you should receive three payments throughout the year. Usually, they will be more or less the same amount each time. They will be paid at the beginning of each semester. However, this is not the case for Scotland, where payments are sent monthly.
Although you receive maintenance loan payments directly, this is not the case for all Student Loans. Indeed, Tuition Fee Loans are given to your university directly. You do not ever receive payments.
Note that your payments will likely be reduced in your final year of education, or final academic year. Indeed, this is especially true for your last payment, which would occur after the month of June, and likely after your graduation. This is because, then, you are no longer considered a student. As such, you are no longer entitled to Student Loans as you might have previously been.
How to apply for a maintenance loan
If you live in England, Wales or Northern Ireland, you can apply by post or online on the Gov.UK website. If you live in Scotland, you have to apply online. You need to apply to where you normally live, not to the country where you are studying.
If you live in England, you can apply on the Student Finance England website. For Wales residents, you can apply on the Student Finance Wales website. If you live in Northern Ireland, you can apply on the Student Finance Northern Ireland website. Finally, those living in Scotland can apply through the Student Awards Agency for Scotland website.
How to repay my maintenance loan
You apply for Maintenance Loan and Tuition Fee Loan at the same time. Both of them are paid back simultaneously. You pay the loan back through the same finance body that you applied with.
The interest rates for students in Wales and England is 4.5% or less. Those still in university will have to pay the 4.5%. However, those who graduated will have an interest rate from 1.5% to 4.5%, depending on their income. In Scotland and Northern Ireland, the Maintenance Loan interest rate is 1.1%.
When should I repay my Maintenance Loan?
When you need to repay the loan is the same regardless of your location. More specifically, it is after the April following your graduation. However, your income will have to be superior to the “repayment threshold” for the specific kind of loan that you had.
For example, for students from Wales and England, the repayment threshold is £26,575 yearly, £2,214 monthly or £511 weekly before tax. For students from Northern Ireland and Scotland, it is £19,390 yearly, £1,615 monthly or £372 weekly before tax. The repayment threshold, like the interest rates, change from year to year.
What is the minimum reduced loan a 5th year medical student can obtain from Student finance?
Hello,
You would be entitled to the very basic Reduced Rate Maintenance Loan I believe. How much you get with it depends on where you live and your household income.
Hope this helps,
Robin