Most students fund university with a student loan, but what do they do if their student loan is late? Find out how to cope if this happens to you and where to get help.
There’s no getting away from it: student life is expensive. Between tuition fees, books and class supplies, essentials like food and rent, and putting some aside to have fun, it’s no surprise that many students struggle to make ends meet.
One of the main ways students in the UK fund their studies is through a student loan, which is provided by a government-owned non-profit agency known as the Student Loans Company. Student loans are paid in three instalments. The exact dates vary but you’ll usually get one payment in September, another in January, and the final one in April.
But what if your student loan is late? It happens more often than you might think, and sometimes for reasons outside your control. Here’s how to handle it if your loan is late (no refreshing your bank balance every five minutes required!)
Make sure you’re registered at your university
Even if you’ve accepted a place and arrived on campus, you still need to go through registration with your university. Instructions on how to do this should be provided – it’s usually done during Freshers’ Week. If you haven’t registered yet, check your student handbook, or call your campus’s Student Services to find out how to do it.
Check there are no problems with your application
Missing information or another problem with your application is a common reason for late student loan payments. Check your emails and your Student Loans Company account to make sure you haven’t received a notification that there’s a problem. You might need to provide more information or evidence to support your claim.
If you applied late for your student loan, you might also be waiting a little longer to get your money.
Call the Student Loans Company
If you call the Student Loans Company, they’ll be happy to advise you on what’s happened and help you get your finance payment sorted out. Here are the numbers you’ll need:
- Student Finance England – 0300 100 0607
- Student Finance Northern Ireland – 0300 100 0077
- SAAS (Scotland) – 0300 555 0505
- Student Finance Wales – 0300 200 4050.
Borrow some cash to tide you over
If possible, this is a great time to call on your loved ones to support you with a short-term loan. Can a friend whose loan has arrived on time lend you some money to tide you over until your payment arrives?
If they’re able and willing to support you, you can also ask your parents or another family member to lend you some money.
Whoever you ask, remember to thank them profusely and pay them back promptly when your loan payment does arrive.
Use your student overdraft
If you have a student bank account, you likely have an overdraft facility on 0% interest. This means you can take out more money than you have, up to an agreed limit which could be as high as £3000.
We caution against seeing your overdraft as “free money,” as you will have to pay it back eventually, but it’s perfect for emergencies such as when your student loan is late.
You might also be able to get a student credit card, which we recommend using in the same “emergencies only” way.
Ask your university for help
Many universities offer small, short-term loans or hardship grants to help students in exactly this kind of situation. Check your university’s online student portal, your student handbook, or visit Student Services or the finance office for advice.
These short-term payments (sometimes called “bridging loans”) won’t cover big expenses like rent, but they will help you feed yourself and cover essential expenses until your money arrives.
Ask for extensions on payments
If your rent is due but your student loan hasn’t come in yet, contact your landlord and let them know the situation. Landlords who let to students know that this sort of thing happens sometimes. As long as you pay promptly when your loan comes in and are generally reliable with your rent, they should give you an extension on your payment.
If you owe money to anyone else, such as your phone provider or a utility company, call them and explain in the same way. Most will grant you an extension if you cannot pay on time because your loan is late.
Take on some part-time or freelance work
If you search “how to make money online”, you’ll find endless ideas. Some of them are legitimate, while others are a waste of time at best and a scam at worst. One of the best ways to make some cash is to take on some part-time or freelance work. Here are a few options to consider:
- Working in a bar, coffee shop, or retail store
- Babysitting or childminding
- Pet-sitting or dog walking
- Freelance writing
- Web design
- Art or graphic design
- Collecting for charity
- Working as a student liaison or guide on campus
Be aware that it can take a while to get paid once you start working, so while this is a great option that enhances your CV as well as bringing in much-needed funds, it’s probably not the place to start if you urgently need money today.
Budget
We always advise having a budget as a student, but a late student loan payment might mean a slightly more aggressive budget strategy is called for.
Work out how much money you have to tide you over until your loan comes in, and then prioritise your expenses. Top of your list should be food and anything else necessary for survival (e.g. prescriptions). If you can get an extension on any bills due, as we discussed above, that will give you some breathing room. After that, prioritise the most important expenses (such as travel costs to get to campus) and limit or pause non-essential spending (such as going out.)
We hope your student loan will be on time but if it does get delayed, these tips will help you stay afloat financially and get on with enjoying your time as a student!
