Applying for Graduate Loans in the UK

Graduate loans in the UK are normally applied for through certain well-defined channels. In England and Wales, you apply to the Local Education Authority (LEA). In Scotland, the function is performed by SAAS, the Student Awards Authority of Scotland. Residents of Northern Ireland submit the paperwork to the Education and Library Board.

How Much You Can Expect to Get

The amount of graduate loans actually granted in the UK will depend upon needs and means. Your needs shall be assessed by the disbursing authority, and 75% of that amount will be readily available to you if you're living in England or Wales. The granting of rest of the total amount needed will depend upon an assessment of your means to self-finance or to repay the loan. In Scotland the rules are a bit tougher, and you may end up with little more than £800.
The assessment of means takes into account local variations of cost, and other factors. For example, if you're enrolling in a London-based course, you may be eligible for an additional £1000, because subsistence costs in London are perceived to be higher.

Paying through PAYE

Graduate loans in the UK are usually repaid through the PAYE system, which stands for Pay As You Earn. This is a frequently used government system of collecting revenue which deducts amounts from the debtor's source of income directly at a pre-determined rate. Though this system is employed mainly for collecting income tax and insurance premiums, it is also frequently used for realizing repayments on graduate loans.
UK has a minimal interest rate for graduate loans, which is a variable tied to the rate of inflation. The current rate stands at 2.6% per annum. In a sense, then, graduate loans in the UK are interest-free.