UK Student Finance
An A-Z of Student Finance

Finance for Full-Time Students

New full-time students can get loans, grants and bursaries to help with tuition fees and living costs. These help you study first, and pay back when you’re earning.

If you’re a new full-time higher education student this year, or you’re thinking of applying for next year, the financial help you can get includes loans, grants and bursaries.

Tuition Fee Loans

How much can you get?

Universities and colleges can charge new full-time higher education students up to £3,000 per year in tuition fees in 2006/2007 (£3,070 in 2007/2008).

 

However, all eligible full-time students can now get a Student Loan for Fees (sometimes known as a ‘tuition fee loan’) to cover the full amount charged, so no one has to find the money for fees either before or during their course.

 

How much will you have to repay?

If you take out a student loan, you won’t have to start making repayments until you’ve left your course and are earning over a certain amount, currently £15,000 a year.

Your repayments will be nine per cent of your earnings over this set amount. So if, for example, you were earning the average starting salary of a graduate level job of £18,000, your repayments would be £5.19 a week.

The interest rate (currently 2.4 per cent) is linked to the rate of inflation, so the amount you repay is the same in real terms as the amount you borrow.

 

What if you don’t earn enough to afford repayments?

Repayments are linked to how much you earn and not how much you owe. If your earnings were to drop below £15,000 at any time, your repayments would stop until you were earning over this amount again.

 

Living Cost Loans

You can also apply for a Student Loan for Maintenance (also known as a ‘living cost loan’) to cover the cost of living expenses.

How much can you get?

The amount depends on where you study, where you live while you study, and the academic year.

For example, if you live away from home and study in London you could get up to £6,170 in 2006/2007 (£6,315 in 2007/2008).

Or if you live at home you can get up a loan of up to £3,415 in 2006/2007 (£3,495 in 2007/2008).

All full-time students can automatically get around 75 per cent of the full loan amount but how much you get will depend on your household income.

 

What about repayments?

The repayment system is the same as for the tuition fee loan. You don’t have to start any repayments until you have left your course and are earning over £15,000. If you take out the tuition fee loan and the living cost loan the amounts are added together so you only make one repayment.

 

Grants for Living Costs

Around half of all full-time students are also likely to be eligible for a yearly Maintenance Grant of up to £2,700 for 2006/2007 (£2,765 for 2007/2008). This grant is non-repayable.

How much you get depends on your household income and the year of study. For example:

·        you will receive the full grant if your household income is less than £17,500 for 2006/2007 (£17,910 for 2007/2008)

·        you will receive a partial grant if your household income is between £17,501 and £37,425 for 2006/2007 (£17,911 and £38,330 for 2007/2008)

If you receive means-tested benefits such as income support, you may receive the Special Support Grant in place of the Maintenance Grant.

Bursaries and Scholarships

If your tuition fees are over £2,700 in 2006/2007 (£2,765 in 2007/2008) and you receive the full Maintenance Grant, your university or college will give you extra financial help.

For example, if you are charged tuition fees of £3,000 this academic year, you will get a minimum bursary of £300.

Many institutions are offering more the minimum amount, and some are offering bursaries to all students.

So, it’s well worth contacting the universities or colleges that you’re interested in attending to find out exactly what they’re offering.

Extra Financial Help

You can apply for extra help may if you have a disability or specific learning difficulty, or if you have children or adult dependants.

If you need extra financial support for your course or to stay in higher education, you may also be able to apply for help from the Access to Learning Fund.
 

 

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