Why you should never take out student loans
Students and their parents may soon be able to borrow a little more money in the UK, after the government passed legislation to allow it.
As part of the Higher Education (Student Loans) Bill, the government is giving students the opportunity to borrow £10,000 a year for up to 12 months to help with student loans.
It comes as it prepares to unveil a new scheme to offer loans to people who need to attend college and university.
The Student Loans Company, which is part of a consortium of lenders, will offer loans up to £10k for up and down the years.
It will be able offer loans at a range of interest rates, including interest-only, interest-free and variable rates.
Under the scheme, students can borrow £5,000, £3,000 and £2,000.
Interest-only loans, which can be used to help cover a degree, will be available for people who cannot meet the £10K loan limit, and variable rate loans, including £1,500 a month interest, will cover people who do meet the target.
It will be up to students and their families to decide how much money they need to borrow.
The scheme will be rolled out across England from the end of April, and will not apply to foreign students.
However, parents may be able take out loans up for longer, in line with the UK’s higher education legislation.
The government will not provide further details on the scheme until the end a week.