More than 17,000 students apply to study at Cambridge each year, and about 4,500 are offered places. Currently, a UK student pays £9,250 for tuition at Cambridge every year. An international student will have to pay between £22,000 and £31,000 per year.

Every year, many students from all over the world compete for a place at Cambridge University. The competition at Cambridge is fierce, and only the best candidates are offered a place. 

If you’re hoping to study at this prestigious university, you’ll need to make sure you have the finances to cover the high cost of tuition. Luckily, there are a few different ways to get a loan for Cambridge University, including scholarships, bursaries, and loans. 

How Do Student Loans Work?

The first step in getting a loan for Cambridge University is understanding how student loans work. In the UK, there are two types of student loans available: direct loans and private loans.

Direct Loans

Direct loans are also known as government-backed loans. These are offered by the Student Loans Company and do not require a credit check. Students can borrow up to £9,250 per year for tuition fees and living costs.

The biggest advantage of a direct loan is that you don’t have to start repaying the loan until you’re earning a certain amount of money. For example, in England, you won’t have to start repaying your loan until you’re earning more than £25,725 per year.

What’s more, the amount you repay each month is based on your income, not the amount you borrowed. So, if your income goes down, your repayment amount will also decrease.

Private Loans

Private loans are offered by banks and other financial institutions. Unlike direct loans, private loans often require a credit check and may have a higher interest rate.

The biggest advantage of a private loan is that you can start repaying the loan as soon as you finish your studies. This can help you get out of debt more quickly.

Not sure where to find a private lender? Visiting a website like Paydaysverige allows you to view different lenders and their interest rates and compare them directly.

Here, you can find private lenders like Everydayplus, which offers loans with low-interest rates and flexible repayment terms. Another great option is Goodcash.

Dependent Student Loans

First, we need to differentiate the dependent from independent students. A dependant student is defined as someone who:

• Is under the age of 24
• Is not married
• Does not have any children
• Is not a veteran

You will be considered an independent student if you meet the above criteria. Independent students are eligible for higher loan amounts than dependent students.

If you are a dependent student, your parents can apply for a Direct PLUS Loan to help cover the cost of your education. The interest rate on PLUS Loans is currently 7.08%, and payments are not due until after you graduate.

A dependent student can receive up to £5,500 in Direct Loans. Of this amount, up to £3,500 can be in Subsidised Loans, and up to £2,000 can be in Unsubsidised Loans.

Independent Student Loans

Independent students are eligible for up to £7,500 in Direct Loans. Of this amount, up to £5,500 can be in Subsidised Loans, and up to £2,000 can be in Unsubsidised Loans.

Postgrad Loans

The UK government offers loans of up to £10,609 for postgraduate students. These loans are not need-based, meaning your financial circumstances will not affect your eligibility.

The repayment terms for postgraduate loans are different from those for undergraduate loans. You will not have to begin making payments until you earn a salary of £25,725. And, you will have up to 30 years to repay your loan in full.

Parent Loans

Parents of dependent students can apply for a Direct PLUS Loan to help cover the cost of their child’s education. To apply for this loan, the parent must provide a written statement that the student will use the funds for educational purposes.

The repayment terms for Parent PLUS Loans differ from those for undergraduate and graduate student loans. Parents will have to begin making payments immediately after the loan is disbursed. And the repayment period is 10 years.

Private Loans

Private loans are not need-based and typically have higher interest rates than government-sponsored loans. But that doesn’t mean you can’t find a private loan with reasonable terms. 

To qualify for a private loan, you must have a suitable credit history. If you don’t have a good credit history, you may need to find a cosigner who does.

In Conclusion

Many different types of loans are available to help you finance your education at Cambridge University. The best financial aid for you depends on your monetary circumstances and educational goals.

The most important thing is to understand the type of loan you’re getting the terms of repayment, before signing your name on the dotted line. Keep in mind, you’ll be responsible for repaying the loan, even if you don’t graduate.