You may be deterred from funding your study and living costs using the UK government’s student loans because of the interest added to the repayment of these loans.
Student Loans Company interest rates
Before 2012 the interest on government loans was set at the rate of inflation but since 2012 student loans accrue interest at the rate of inflation plus 3 percent whilst you are at university and then after you leave university between the rate of inflation only and inflation plus 3 percent depending on your earnings.
Alternative Sharia-compliant funding system
In September 2014 the UK government undertook a consultation to explore the need for an alternative finance product based on Takaful principles and how this alternative finance product could be delivered by the Student Loans Company. Further support for the development and implementation of an alternative student finance product was reiterated in the 2016 Success as a Knowledge Economy report (page 59).
In March 2023, in response to its consultation on the Lifelong Learning Entitlement (LLE), the Government said a Sharia-compliant alternative student finance product would not be part of the launch of the LLE in 2025. The Government said it remained committed to delivering such a product "as soon as possible after 2025".
It is important that you plan how you will fund your studies before starting your course.
Newcastle is relatively inexpensive compared to other parts of the UK. How much money you might need to have in place and how much you spend will depend on your lifestyle.
Tuition fees are variable and depend on your course of study.
If you want help in managing your money and planning a budget you can contact the Student Finance Advisers(if you are underfunded i.e. you do not have enough funds in place to cover your living costs and fees the Advisers will not be able to help you to source alternative sources of funding or seek a tuition fee waiver or reduction for you).
The Student Financial Support Team are not able to endorse or recommend specific providers but the charities, trusts and providers listed below may be worth exploring to see if there are any alternative sources of external funding you may be eligible to apply to.
If you are an undergraduate student you could be eligible to receive the main centrally administered Opportunity Scholarship which is assessed on your household income – this is supplemented by a number of other donor funded and subject specific scholarships .
We rely on Student Finance England (or equivalent funding body) to undertake an income assessment and share your household income with us in order for us to administer the main Opportunity scholarship but please be assured you do not need to take out any SLC loans in order to receive our scholarship. Each year a number of students will provide their household income information to Student Finance England (or equivalent funding body) for the sole purpose of being assessed for our scholarship scheme.
The University also provides discretionary financial support to assist students once they have registered at the University if they have accessed all other sources of funding available to them but find that they are still struggling. If your faith deters you from accessing interest bearing finance you would still be eligible to apply for help from the University’s discretionary hardship funding but would need to be able to evidence that you had tried to obtain alternative sources of non-interest bearing funding before applying. Due to the discretionary nature of the funding it is not possible to guarantee that an application would be successful and the funding cannot assist you in covering the cost of your tuition fees so it is unlikely that this funding would provide funds at the level required to cover your full tuition fees and living costs.
Some trusts and charities may not consider an application from you if you are entitled to apply for government loans, whether you have taken these out or not.
Banks often require evidence of a student loan before allowing you to open a student bank account with an interest-free overdraft facility.
If you are entitled to claim welfare benefits the Benefits Agency will usually assume you have taken your loan entitlement and will reduce your benefit entitlement accordingly. For advice about benefits you can contact the Students’ Union Student Advice Centre.
