If you are a student in the UK, and are seeking to enhance your skills and job prospects but cannot afford it due to the high cost of learning, the educational loans could be ideal for you. The loans are suitable because you do not have to pay the money with interest during your study period. The payments are paid in a conventional way after the completion of your studies.

The educational loan is different from the normal loan, with the advantage of the (YPLA) Young People's Learning Agency paying the interest on the loan while you are learning; and for an extra month after you complete your course. This gives you some room for you to be established without worrying about what might happen after the completion of the course. The loan is however paid with interest after the course completion plus the interest agreed upon during the loan approval. The interest rates are set in such a way that they are very competitive compared with other none educational loans i.e. unsecured personal loans that are offered commercially.

Currently, banks in the U.K offer educational loans at a subsidized customer rate of 9.9% per annum. The interest rates may however vary from one bank to another and this is something that you need to understand before approaching a single bank for the loan. For details and further information, it is important to consult the preferred participating bank.

An educational Loan can help to finance a variety of courses lasting up to two years or more, if the course does include extra time such as one year of work experience. The particular course you are taking does not necessarily have to lead to a qualification for an educational loan. However, it must be one that will help with your career in the future. You can apply for the educational Loan if you fall under the following categories:

1. You are taking a post-graduate course, like a Masters Degree
2. Pursuing a technical or management training
3. Seeking a professional qualification
4. Taking a course at a local college or learning provider
5. Pursuing an additional Bachelors degree (if you're already a graduate)

Where to channel the educational loans

The loan can be spent for the course payment. This can take 80 to a 100 percent if you have been working for about 3 months. Books, travelling and childcare among other course related costs and expenses such as food, clothing and rent for those who are unemployed.

 

Eligibility requirements:
1. Must be over 18 years of age or above.
2. Must be living or settled in the United Kingdom and have been a legal resident for at least 3 years prior to the commencement of the learning program.
3. Must be planning to work in the United Kingdom, European Union or the EEA upon the completion of the course.

It is worth to understand that although all the conditions aforementioned are met, the bank reserves the right to award you the educational loan. There are some other lending criteria that must be met depending with the bank.