Student loans can help to cover costs connected with receiving higher education.
These kinds of loans are issued by Student Finance Direct, a service managed by the Student Loans Company in partnership with local authorities and the Department for Education and Skills.

The interest rate on student loans is directly linked to the rate of inflation, so you just pay off the exact amount you borrow.

The student loan conditions depend on the course the student takes, where he/she lives while he/she is studying, and her/his individual circumstances.

You can find the following types of student loans and financial aid available for students in UK:

1.    Tuition fee loans- to help students to cover the costs of tuition fees;
2.    Maintenance loans- to help students to cover living costs;
3.    Grants for living costs- to help students to cover living costs;
4.    Bursaries and scholarships- from universities and colleges;
5.    There is also extra help available for students: in case they have children or dependants or have disabilities.

Tuition fee loans - All full-time students are eligible for a Tuition fee loan to cover the full amount charged, thus there is no need for students to find the money for fees either before or during their course.
Student Finance Direct pays the Student Loan for Fees straight to your college or university.

You will have to repay your student loan only when you have finished your course and earn more than a certain amount, currently £15,000 a year.
Repayments will make 9% from this fixed amount.
Currently the interest rate is 2.4 per cent.

Keep in mind that repayments are connected to how much you earn and not how much you owe. In case you earn less than £15,000 at any time, you won’t make repayments till you earn the fixed amount again.

Maintenance loans - cover living costs during term times and holidays.
The factors that will influence the amount you will be able to borrow will are the following: your household income, where you live while you are studying and how much Maintenance Grant you receive.

The amount of Student Loan for Maintenance does not depend on the fact that you obtain the Special Support Grant.
It is possible to receive smaller amount of loan if you are on your final year.

The Student Loan for Maintenance is usually paid straight into your bank account by Student Finance Direct in three installments at the start of each term.

Grants for living costs - intended to cover the costs of living expenses.
About 50% of full-time students are able to obtain a yearly Maintenance Grant of up to £2,700 for 2006/2007 (£2,765 for 2007/2008). The students do not have to repay it. The amount you receive depends on your household income and the year of study.

Bursaries and scholarships - If your tuition fees exceed certain amount (which is fixed for each year of study) and you receive the full Maintenance Grant, your educational institution will have to give you additional financial aid.

The minimum amount of bursary is 10%.

Some institutions are providing more than the minimum amount, and some are providing bursaries to all students.
So contact the institutions you would like to enter and find out exactly what they're offering.


Extra help - You can obtain extra help if you have a disability or specific learning difficulty, or if you have children or adult dependants.
If you are in need of extra financial support for your present course or you would like to stay in higher education, you can also apply for help from the Access to Learning Fund.

Disabled students or students with specific learning difficulty can apply for extra help from the Disabled Students' Allowances. The amount of help for these students is not linked with their household income.
The help also can be claimed from the Access to Learning Fund.

Full-time students with a child or adult dependant can apply for extra financial help.
This is paid on top of the standard student finance package.

Full-time students with adult dependants may be able to apply for the Adult Dependants' Grant. This help is non-repayable.
A partner (of either sex) or another adult, usually a member of your family who depends on you financially is regarded as adult dependant.