Funding your Study
How much will it cost and when do I have to pay?
Your main costs are your tuition fees and your living costs. From September 2012 full-time undergraduate tuition fees will be between £6,000 and £9,000 per year. This will vary by institution and you should ask your chosen university or college.
You do not pay these fees back until you graduate and are earning at least £21,000 and what you pay will depend on how much you earn. For example, the starting salary for a newly qualified teacher is around £21,500. Someone on this wage would make monthly repayments of less than £4 a month. Graduates who earn more will repay more each month.
The repayments you will have to make each month depending on your annual salary after you graduate will be:
- Less than £21,000 - no repayments
- £22,000 - monthly repayment £7.50
- £25,000 - monthly repayment £30
- £30,000 - monthly repayment £67.50
- £40,000 - monthly repayment £142.50
- £50,000 - monthly repayment £217.50
(source - Martin Lewis - Money Saving Expert)
Whether your fees are £6,000, or £9,000 per year, your monthly repayments will be the same. If your fees are at the higher end, you will make repayments for longer. Most people will find they are making repayments for most of their working life, much along the lines of a bit of extra income tax.
If you never earn more than £21,000, you will never pay back your loan in full. Any outstanding debt is written off after 30 years.
Another important change is that part-time students will also be able to get loans for their tuition fees, operating in the same way as above. If you’re thinking about becoming a part-time student, you should contact the universities and colleges you are interested in to find out about the fees.
Is there help at hand?
Yes. If you are starting an undergraduate degree for the first time (the vast majority of students), you will not have to pay any tuition fee costs upfront. Tuition Fee Loans are available to help you pay for your studies. These are for the full cost of your tuition fees, and are paid directly to your university or college. From 2012/13, tuition fee loans are also available for part-time students, who spend at least 25% of their time studying.
On top of tuition fees, you will also have to consider your living costs – rent, food, transport etc. Student maintenance loans are still available to help cover these costs and you may find you are also eligible for maintenance grants, bursaries and other financial assistance. Students from Cornwall may of course also find that they can make considerable savings on travel and living costs by staying at home.
From 2012 there will be a new £150m National Scholarship Programme to help students from lower income families. This is still to be finalised.
Universities and colleges will also be offering scholarships that reduce tuition fees to students from low income households and some other groups.
Contact the financial advisor at your chosen college or university directly to find out more about the specific support available.
Is it just loans? Is there any help I don’t have to pay back?
Yes. Maintenance grants are also available to eligible students to help with your living costs (like accommodation, food and books), depending on your household income. These grants DO NOT have to be paid back.
What if I’m on benefits?
If you’re currently receiving benefits and want to know how these may be affected by returning to study, please contact the student services at the university or college you are looking to attend.
What if I have children?
You could be entitled to additional financial support, including a Childcare Grant and Child Tax Credits.
Where can I find out more?
Please visit www.direct.gov.uk/studentfinance for more information. There is also a lot of clear information about the changes to Student Finance on the Martin Lewis, Money Saving Expert website
Contact the universities and colleges you are interested in with any questions regarding specific course fees and financial help available.
