Student Loans - Compare The UK's Student Finance Options

Small Amount Student Loans Options

The price of university and college education in the UK can be a very high to say the least. When you add up the tuition fees, maintenance costs and extra student loans over many years, it can become a hefty amount. Some students can run into financial difficulties and struggle to pay bills. For first year students the issue is usually that it's their first time away from home and is the first experience they've had with having to budget their finances for living expenses such as accommodation and food. But with responsible budgeting students can reduce their borrowing to a minimum.

The Government Student Finance package offers the best solution when it comes to student loans in the UK. You can borrow money from the Government to cover your tuition fees and help towards maintenance (living) costs. The great thing about the Student Finance package it that the interest rate of the loan is based on the rate of inflation or 1% above the national interest rate, whichever is lower. So currently the interest rate on this type of loan is between 1% and 3.5%. But in real terms because it's based on the inflation rate you will only have to pay back the same amount you borrowed. It is the cheapest type of borrowing available in the UK. Another plus point is that you don't have to start paying back the loan until you are in full time work and earning over £15,000 per year. Then you only pay back 9% of your yearly income above £15,000. So for example if you were earning £17,000 you would pay back 9% of £2,000 which is just £3.46 per week.

So as you can see the Government Student Finance package really is the cheapest borrowing option and should be your first choice when looking for student loans. But what happens if mid-term you need to borrow money for something unexpected? Well here are some other loan options available for UK students.

Small Amount Loan Options For Students

* Parents - It's always worth asking. You won't get a cheaper loan elsewhere!

*Bursaries - Your college or University may have money available for you in the form of Bursaries. Ask them for details about this.

* Payday Loans - These can be expensive but very useful if you need cash fast. Typically you'll pay back £20 for every £80 you borrow. You need to have a regular job (part-time ok) and a debit card to qualify.

*Student Credit Cards - Again it can be expensive but as long as you pay back every month it's fine. Many credit card companies offer 0% interest for new customers, usually 3 months to 1 year. Possibly a good way to borrow but always read the small print!

*TxtLoans - This is a relatively new service that allows you to borrow £100 fast. Sign up and just send a text message to TxtLoans whenever you need cash. The £100 is automatically deposited in your bank account within minutes. You state the date you want to pay it back and TxtLoans debits the money on that date.

It's important to remember that borrowing money should be a last resort, especially if you can't borrow it for free from your parents or from university bursaries and the government. If you do have to borrow from expensive methods like payday loans make sure you can pay it back on time or else it can become very costly. A student credit card may be a good option if it has a long 0% time for new customers. But of course this will need to be paid off before the deadline to qualify as interest free.

Student Loans