Leaving home to go to university can be a daunting task; not only is it a big commitment of time and effort, it is also a huge commitment in terms of your finances. Some are left wondering whether they can afford university tuition fees at all.

It’s a fact of studying that some students come away from university with thousands of pounds of debt. However, this should not necessarily affect your decision to apply for university. The majority of what you owe will be in the form of a student loan. Unlike other types of loans, for example with instant decision loans , you only have to start to pay off student loans when your salary reaches a particular amount. Also, remember that the salary of a graduate is on average 20% higher than those without a degree.

Student loans are lent in the form of annual tuition fees which can be around £3,290 annually – though the amount can vary depending on which course and university you choose. Visit UCAS or your university’s website for more information.

There are two types of student loans available from the government: tuition fee loans and maintenance loans. A tuition fee loan is an amount that is paid directly to the university to cover the cost of the actual teaching. The maximum amount of the loan is the full cost of the course; so if your course costs £3,375 per year, you can borrow no more than this amount.

The second type is a maintenance loan which is to help with living expenses outside of tuition like accommodation. The amount of the loan will depend on various factors – such as whether or not you live with your parents for the duration of the course, how much your parents earn, and in which city you live. Whether or not you receive a maintenance grant will affect your eligibility for a full maintenance loan. The loan is paid to you in three instalments spread over the year.

Both types of loan must eventually be paid off after you graduate. No payments will be due until the first April following the end of your course – and only after you are earning a salary of more than £15,000. You will only pay 9% interest on your earnings above this amount; so if you earn £20,000, only 9% of £5,000 per year will be deducted. The amount is taken out of your wages by your employer and paid to the government.

This system of repayment exists to ensure that students are always fully capable of paying off the loan – even in the case that they do not immediately find employment.