Information for Students who choose not to take Student Loans
Those students who are eligible for loans to fund their studies but choose not to take those loans need to plan their finances very carefully and consider applying for funds from charities and trusts, a good place to start is using the links in the External Funding box on the right hand side of this web page.
You will still be eligible for University bursaries, scholarships and fee waivers. However in order to be assessed for University support you do need to apply to Student Finance England (or equivalent national agency), but you are not obliged to take any loans they offer. Please note the government does offer means tested grants which you do not have to repay, you will be assessed for these when you apply to Student Finance England (or equivalent agency).
It is important to understand that if you decide not to take a loan, this is likely to effect your eligibility for other sources of funding:
- The Access to Learning Fund only accepts applications from those who have taken their full maintenance loan entitlement.
- Banks often want to see evidence of a loan before opening a student account with the interest-free overdraft facility.
- Some trusts and charities specifically exclude students who are entitled to a loan, whether they have taken it or not.
- If you are entitled to claim benefit as a student, the Benefits Agency will assume you have taken your loan entitlement and will reduce your benefit entitlement accordingly.
Funding from Banks
Interest-free overdraft facility
Most UK banks offer home undergraduates a student bank account with an overdraft facility which is interest-free up to a specified limit.
Money Advice
If you have concerns about the level of funding available to you and how you can manage your budget, you can make an appointment with one of the Money Advisors in the Student Advice Centre located in the Union of Students, telephone: 0114 2228660
Students who do not take a student loan for religious reasons
Some students may not take the student loans they are entitled to because of their religious beliefs. It is very important that you have fully considered your options and have consulted your religious adviser and family before making a decision about funding your studies.
Sharia-compliant financing
HSBC and Lloyds TSB have Sharia-compliant financial services. For more information, visit the banks' websites: