Study Loans

A Study Loan is a private loan to cover fees, living costs or specific expenses (e.g. funding an elective). Repayments are deferred or reduce until after you graduate, and include interest which is also charged whilst you’re studying.

At the time of writing the previous major provider of study loans had entered administration. is a new company advertising study loans.

We advise thinking very carefully before borrowing money commercially to fund studies as interest rates are very high and as a commercial loan this is not paid back according to income.

What to look for in a loan

Before taking a loan it’s important to shop around as interest rates, fees and eligibility for study loans can vary between banks. Listed below are things you should look for if you are seeking any type of loan.

  • The annual percentage interest rate (APR) – this may be fixed or variable (e.g. ‘floats’ 5% above the Bank of England base rate). Remember that a variable rate will currently be lower than the fixed rate, but is more risky as interest rates can rise
  • Is the loan given in instalment or as one payment? Interest is charged from when you receive the money so you should immediately transfer the loan to a high-interest savings account or an ISA. Only keep the minimum you currently need in your current account
  • Is there an arrangement fee? Check if it is paid upfront or added to the loan (where you will also be paying interest on it)
  • How many years do I have to repay the loan? Make sure that repayments seem affordable (remember you will be paying off student loans as well). The longer the repayment period, the more interest you will end up paying in total
  • Is there a redemption (early repayment) fee? You can save a lot of money in interest by repaying the loan early but the bank may hit you with a fee for doing so
  • Are there any other fees or requirements (e.g. life insurance)?
  • How long will it take to arrange the loan? You may be able to apply before you begin your studies if you already have a place at med school but always allow plenty of time
  • Can I take a loan from my first year of study?

If you have a history of unpaid debts, too many outstanding debts or even no history of borrowing you could be refused a  Loan. You can check your credit rating – see the links below.

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