Department of Education Student Loan

For numerous students in the United Kingdom their only option if going on to further eduication is to finance their studies with a departement of education student loan. A firm has been set up by the departement of education just for this precise purpose and is called the Student Loan Company.
Nowadays students no longer receive education grants and so have to pay their own tuition fees, this change has taken place in the last few years, many students now end up with a sizeable amount of debt by the time they graduate.
The interest rates on these departement of education student loans are not too high and are purely to cover the interest rate on the open market. Also more significantly the student loan repayments are not payable until the borrower is earning a set wage. Every year the Student Loan Company contact all of their borrowers and tell them of the minimum wage threshold in order to be suitable to start making the student loan repayments. The borrower then states what their income is and also has to provide written proof of it by way of wage slips covering the last three months. TheDepartement of Education Student Loan Company then decide if they are required to make repayments on their student loan or not and if they aren’t the student loan is postponed for another year and the cycle then repeats itself again. The beauty of this system of accessing your student loan whilst studying at further education is that all of the loans held by the borrower, which could be up to four in some cases , are all held in the same place. The interest rates are computed on each student loan seperately as the first student loan will have been held longer than the fourth and also chances are the student loans will be for various amounts, but the repayment would be calculated to cover all four of these student loans. Therefore only one payment would be paid per month rather than four separate ones.
If a borrower fail to reach the minimum wage threshold within a specific number of years, the student loans are cleared and the debt will be written off. This is done because most university graduates will go on to earn higher than average wages and so will be able to pay off their student loans. It also gives a safety net to those who do not go on to earn high wages as these repayments can be quite high given the total amount  many students need to borrow whilst studying.