If I Decline a Student Loan Now Can I Get It Again Later
If you're thinking nearly dropping out of uni but aren't fully sure what would happen to your Pupil Loan, don't worry. Hither are the key things to know...
Our latest National Pupil Money Survey found that as many as 76% of students have thought near dropping out of uni at some signal.
University isn't for anybody and deciding information technology isn't for you shouldn't be considered a failure by whatever stretch. The learning environs might not be right for y'all and that'southward okay.
However, oft students make the decision without fully agreement what happens to their Student Finance (and other legal obligations). This guide volition become y'all on track, and if you've yet to spring transport, it should help with your decision making.
Before making the jump, always talk to your university near why you're thinking about dropping out. They can give you specific guidance or suggest a less permanent solution.
How much money will you owe if you lot drop out?
Credit: Yevgen Kravchenko, kamui29, Bell Photography 423 – Shutterstock
Once your academy has confirmed your withdrawal with the Educatee Loans Company (SLC), all hereafter Pupil Finance payments will be stopped, for both parts of your Student Loan. At that place's a good chance yous'll take other obligations too, which nosotros'll touch on beneath.
Tuition Fee Loan
Your Tuition Fee Loan is the role of your Student Finance that covers the costs of your degree.
It'south paid directly to your university in three instalments each twelvemonth. The first ii instalments are paid at the start of terms one and 2 and each makes up 25% of the total amount borrowed. The terminal i is paid at the beginning of the third term and equates to fifty% of your loan for that year.
Y'all can currently get up to £9,250 per year towards your tuition fees, so double-check how much you have taken out this yr and any previous years. This is the corporeality y'all will take to pay back (minus the fees for terms you haven't notwithstanding completed) plus added interest.
It's worth bearing in mind that yous will nevertheless be charged for a full term even if you driblet out halfway through. This will exist added to your loan balance which becomes repayable later on.
How much will you owe per semester?
| Dropout date | Full debt* | |
|---|---|---|
| Outset twelvemonth | | £2,312.l |
| | £4,625 | |
| | £9,250 | |
| Second year | | £xi,562.l |
| | £13,875 | |
| | £18,500 | |
| Third year | | £20,812.fifty |
| | £23,125 | |
| | £27,750 | |
* Interest will be added to this amount during your fourth dimension at university at the charge per unit of RPI + 3%.
Please note that the in a higher place tabular array applies to students in England.
For students in other parts of the UK, the amounts yous'd owe would vary depending on the size of your Tuition Fee Loan. The structure would remain the same – the corporeality you'd owe would depend on which term you get out, and how much of the Tuition Fee Loan you've received up until that point.
Accept a crack at working out how much you'll exist paying back and how long it'll take you with our Pupil Loan repayment calculator.
Maintenance Loan
Your Maintenance Loan covers day-to-day living costs. It'southward paid direct to your educatee banking concern account in three instalments throughout the twelvemonth, ane at the first of each term, and each instalment equates to roughly a third of the total corporeality borrowed for that year. The official Maintenance Loan split is 33/33/34. Note that in Scotland, loans are paid monthly.
The amount y'all're entitled to depends on your household income (i.due east. how much money your parents make) and your living state of affairs (whether you're living at home, away from dwelling exterior London or away from dwelling and in London).
As an example, students from England tin become upwardly to £9,488 to embrace living costs if they alive away from home and exterior of London (and up to £12,382 if they alive in London).
The sum you're entitled to will probably exist different from how much your mates are entitled to every bit everyone's situation is different. Have a look at our full Maintenance Loan guide to find out more.
Double-check how much y'all have taken out this year and any previous years to start working out how much you will have to pay back, and conduct in listen the small amount of interest on summit.
Once more, you won't have to pay back any Student Finance you have not all the same received.
Grants and bursaries
Yous may have received a grant or bursary on acme of your Tuition Fee Loan or Maintenance Loan, such as Disabled Students' Allowances (DSA), an NHS bursary or money from your university'south hardship fund.
These, in general, practice not have to be paid dorsum – just you are only entitled to them for as long as you lot're enrolled as a student.
Make sure y'all let your university know the verbal appointment you decide to terminate your studies to avoid having to pay back any money you weren't entitled to (and may have spent in the concurrently).
If you received a grant or bursary from whatsoever other source, you lot volition need to get in touch with the provider to let them know you have dropped out of uni and will need to stop receiving payments.
SLC volition take the grant or bursary you received into business relationship when they reassess your situation to avoid leaving you out in the cold.
Unsure whether this department applies to you? Take a look at our list of student bursaries to encounter if any ring a bell.
Adaptation
You might likewise be jump past a contract for any student adaptation you are renting, possibly for the remainder of the bookish year.
This means that you lot may accept to pay rent until you lot come up to an agreement with your university adaptation provider or your landlord near your moving out date.
Permit them know that you're dropping out of university to figure out the best way forward and avoid getting yourself into a legal tangle.
Student Loan repayments afterwards dropping out of uni
You lot may have to beginning paying a portion of your Student Loan dorsum once you have withdrawn and then repay the residuum farther on down the line.
Immediate repayments
Yous're only entitled to your Maintenance Loan for the portion of the course for which y'all are enrolled. At that place is a adventure that SLC will claim dorsum some of the coin they've already loaned you lot if yous do decide to drib out.
For example, if you driblet out 60% of the way through a term for which you lot have already received funding, you might have to first paying back the funding for the other 40% direct away.
Merely don't sweat it – SLC will get in affect with you to conform an affordable repayment plan that won't exit you in a financial black hole.
Long-term repayments
You lot'll only accept to outset repaying the residual of your loan from the April after you withdraw from your course, and even then you lot must be earning over the repayment threshold (which varies depending on which repayment plan y'all're on).
An ex-University of Nottingham student told Save the Student that he decided academy wasn't for him at the end of the second year of his undergraduate degree in Manufacturing Engineering science in 2014.
He started paying his Student Loan back in 2015 once he was earning over the then-threshold of £21,000 a year (the threshold for these loans has since increased to £27,295 for people with a Plan two loan – if you're not sure which program you're on, check out our guide to repaying your Student Loan).
I'm paying back my beginning two years as standard as if I graduated now I'm working.
Will yous be eligible for funding in the future?
You're unremarkably only entitled to full funding for your beginning undergraduate degree, even if you lot don't make it to graduation. If you do decide to go back to uni a few years down the line for another undergraduate caste, your funding may be reduced.
However, this rule is by no means the be-all and cease-all of any time to come possibility of going back to uni later on.
If you dropped out of your first course due to compelling personal circumstances, such every bit disease or bereavement, you should still be eligible for full funding for your new degree.
Sophie, from London, dropped out of an undergraduate degree in Journalism halfway through the second term of her first year at Bournemouth Academy in 2016. She decided that academy wasn't for her and is at present setting upwards her own photography concern.
I hated uni. I didn't want to be there to commencement with.
She said she felt like she had to go to academy because of the pressure she was facing from her parents. She eventually dropped out of her course considering of the mental health issues she was struggling with.
The pressure from them to go to uni was immense. I never wanted to go the kickoff time and I hated it. I'm far happier now that I'chiliad doing my ain thing and living by my choices.
She was eligible for total funding when she went dorsum to university for the second fourth dimension. She then decided that higher education wasn't right for her after all and didn't return to complete her third year at the University of Roehampton.
You're also entitled to a year of 'bonus funding' in instance your plans go awry and you do have to have a interruption. This can fund a whole extra year of study on top of the length of your current course.
Again, you'll need to provide show of why you had to leave. This could be a letter from your GP, the social services or your uni depending on your circumstances.
This means that you can practice the actress year of study and nevertheless get full funding for the residuum of your course.
Taking a pause from academy
You might want to consider temporarily taking a break rather than dropping out completely, for instance, to support a family member or address mental health issues.
Accept care of yourself outset, then come up dorsum and consider your options afterward when your situation has improved.
Taking a intermission for medical reasons
You can asking for your Student Finance to include an boosted sixty days of funding if you lot determine to append your studies due to sick health or pregnancy. Get in touch with your university who volition put your request through to the Student Loans Visitor.
If you need more than 60 days of extra funding, yous tin can inquire SLC for another extension. You'll need to provide SLC with both of the post-obit:
- A letter from your medico justifying your circumstances
- Proof that you lot would be in financial hardship without the funding (bank statements, tenancy agreement, utility bills or any other kind of document that demonstrates responsibility for financial obligations during the menstruation of suspension).
Taking a break for whatsoever other reason
Sometimes life gets in the way and you may decide to put your studies on hold for other reasons.
You may still be entitled to some of your Student Finance during a break if you have left uni because:
- You are experiencing fiscal difficulties
- You are struggling with the death of a loved one
- A work placement yous were counting on has been prematurely terminated.
SLC will enquire yous to provide prove to justify your suspension. Once your situation has been reassessed, SLC will send you a alphabetic character detailing how much financial support yous are entitled to.
How to drop out of university
If you've made upwards your mind, and understand your financial obligations as we've explained above, get yourself down to your kinesthesia office and permit them know your plans to withdraw from your course. Your uni will then contact SLC to confirm your withdrawal.
SLC volition cancel all future payments, recalculate how much Pupil Finance you're entitled to and permit you know when you have to get-go paying it back.
The admin backwash of dropping out can cause unnecessary stress at an already hard time, so don't suffer in silence. Get in bear upon with your university and with SLC if y'all come across a trouble. Go along your friends and family in the loop likewise.
For more data, contact Educatee Finance England if y'all're from England, Educatee Finance NI if you're from Northern Ireland, SAAS if you lot're from Scotland or Student Finance Wales if you're from Wales.
Have a read of our alternatives to university for other means to jump-beginning your career.
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Source: https://www.savethestudent.org/student-finance/student-loan-drop-out-uni.html
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