What’s involved in a student finance application?

In the current climate, financial worries are a concern to us all. This is especially true for those planning a big change, including students about to begin their university life. Here are some jargon-busting answers to frequently asked questions about undergraduate loan applications to help you support the young person in your life.

‘SFE’?
Teachers or careers advisers tend to use this abbreviation. They are referring to Student Finance England, a partnership between the Department for Education (DfE) and Student Loans Company (SLC) that provides financial support. Your young person can apply for tuition fees, maintenance loans and some grants and bursaries through their website.

A ‘Tuition Fee Loan’?
Students applying for Student Finance receive a Tuition Fee Loan from the government (SFE) each year to cover the cost of their studies:
• these are paid directly to the university
• are not means-tested
• for the majority of full-time, three-year undergraduate courses, this equates to £9,250 per year.

A ‘Maintenance Loan’?
These funds are available to cover living expenses such as accommodation. The loan is paid each term, directly into the student’s bank account. The amount that can be borrowed depends on three factors.
1. Location of study: A student studying in London will be entitled to a higher loan amount.
2. Where the student lives during their studies: Loan amounts differ depending on whether a student lives at home or in accommodation.
3. Household income.

Household income is the prospective student’s taxable income (such as wages/salary) plus the income of:
• you, their parent or guardian (if they are under 25 and live with their parents or depend on them financially)
• one of their parents and their parent’s partner (if they are under 25 and live with them or depend on them financially).

You will be asked to provide evidence of your income if you have a student under 25 who lives with you or is financially dependent on you.

• Evidence of your income such as payslips
• Your National Insurance number and personal income for the previous tax year – P60 or Self-Assessment tax return
• Any taxable state benefits, pensions or income from UK and foreign investments
• Your marital status, if you are separated or divorced
• If you live with a partner – they will request their details separately.

You can register for a separate account from the young person you’re supporting on the Student Loans Company website. This allows you to keep track of what is needed for the application and contact SFE if you have any queries.

As long as they are readable, clearly scanned digital copies of evidence are accepted.