Advice On Student Loans

[janeeire244]

I have received a scholarship from a UK university covering my tuition costs and giving me a maintenance loan for one year of my course. They have advised not to to take out Student Loans as they already providing funding.

However, due to personal circumstances the funding isn’t enough as I’m going to need to stay in full-time accommodation all year and the money they give is intended to cover term time maintenance only.

So, I plan on taking out Student Loans regardless so I can get a maintenance loan on top of their funding.

Please explain how this will work?

Importantly, I don’t really want my university to find out I’m taking student loans out as they may think I’m being ungrateful for the situation and I have contacted them about my circumstances but they said they don’t give extra funding for out-of-term time maintenance. When I get the SFE money, will the University know or find out? And, can I get the SFE maintenance loan only without tuition fees paid as my tuition fees are already covered.

You can apply for just maintenance.
Assuming you are in England (other home nations vary) the amount above the minimum depends on your household income. Everyone can get the minimum c£4.9k for 25/26). You can apply for just the minimum without giving household income details

The loan payments (3 installments) are only released when the uni notifies SFE that you have actually turned up and enrolled. Whether the uni actually 'knows' that you have applied, or whether it is all done electronically I don't know.

But would the university be notifying SFE of all students (even those who don’t apply for maintenance loans at all maybe due to religious reasons or because they are very wealthy)?

Could you work the summer instead. How long is the course?

I think you are worrying too much. Unis will have thousands of students who have applied for finance. I really don't think someone is going to sit and go through the list to check who they all are.
As long as the scholarship money awarded to you by the uni doesn't specifically state that you can't apply for a student loan (which I think would be unreasonable and highly unlikely), I don't think you are doing anything wrong.

I think SFE only contacts uni re. Tuition fees payments, triggered by confirmation of matriculation/registration. You need to check the wording as to whether they advise or it is condition of their funding that you don’t take out further loans . If your circumstances mean you need to rent all year that is not something SFE is set up to do (you get three termtime payments) and the uni may offer bursary funding instead if you approach them. Or you work/get an internship for the summer to cover the extra cost. Is there uni accommodation available for 52 weeks or are you assuming you need to use private halls or rent a flat? It is common to use uni halls for first year (most now include Christmas and Easter breaks)then move into a private rental from end of summer term in May/June. So you wouldn ‘t encounter the additional cost until then, by which time you will need to apply for the maintenance loan anyway.

The Uni are aware of Maintenance loans too, because you're not entitled to one if you aren't enrolled on their course.

Would working not be an option to fund the gap? It's 3 whole months in summer. Or leave the Uni city, travel, work a summer camp that includes accommodation, so many options for Uni breaks.

I work in scholarships and we give this advice to our students as well.
I have no way of knowing you’ve taken out a maintenance loan. I would know about a tuition fee loan because it would flag up that we’ve already paid it.
Scholarships like this are designed to let you graduate without debt, so I would think carefully about whether you can do without the SFE maintenance loan.
Youd also need to check the terms and conditions of your scholarship to make sure you aren’t prohibited there from getting SFE funding on top as that would be more of an issue.

I would second recommendations to work alongside your studies. If the scholarship team as your uni is anything like mine, we would support you with getting paid work!