Mature

Students
Guide

you can afford

to go to uni
Student finance for 25+ year
olds and independent students
in England from 2013

Introduction

Who should read this guide?

If youre 25 or older or independent from your
parents, things work slightly differently than for
typical school leavers going to university. If youre
thinking of applying in 2013 and you fall into any of
the following categories, then this guide is for you.

you are 25 or older

you have a child
you have ever been married
or in a civil partnership
you have been financially
independent for 3 years or longer
you are estranged from your parents
you have no living parents

Mature students often already have degrees so

you will also need to check that you are eligible
for the student finance support on offer.

The Taskforce was launched in June 2011 and is headed by

Martin Lewis of MoneySavingExpert.com. It is made up of
university and student groups including UCAS, Universities UK
and NUS, among others. The Taskforce is independent of, but
backed by, government, and sets its own agenda. No one on
the Taskforce operational group is remunerated for their role.
Information in this booklet is correct at time of writing (August
2012) and can be subject to change Written by Martin Lewis

Introduction

If you only read the newspapers youd believe all students

were single 18-year-olds who have just got their A-level results,
and are ready to spend three years in the student bar binge drinking.
Yet few of those stereotypes are true (though some Im sure may still like the
odd pint). Many at university are substantially older, have children or are financed
independently. In fact some universities now see mature students as the majority. Therefore
its crucial to get the message out to everyone that people of ANY age can afford to go to uni.
This may sound strange coming after the mass publicity blasting out the fact youre likely to leave with
50,000 debts. That alone is enough to put anyone off. And while I cant tell you it isnt true, I can say that for
most people the figure is irrelevant its not about the notional amount youll borrow but what youll repay
that counts. For some this will be nowt, for a few higher earners it will be many times more than 50,000.
The taskforce I head and this guide arent here to sell the system, nor the political solution
behind it, but quite simply to try and ensure every student who goes to university at least
has an understanding of how it works for them in practical financial terms. After all,
if you dont know how much it costs how can you work out if its worth it?

MARTIN LEWIS
Money Saving Expert
Head of the Independent
Taskforce on Student
Finance Information

section 1 - the basic facts

The trebling of tuition fees doesnt

always mean tripling costs
The size of tuition fees can be scary, but its often not as frightening as
it sounds as the repayments are solely based on earnings, not on the
amount borrowed. Its important that you know the following key facts:

1 You dont need the cash to pay for university

Absolutely no money is needed up front. Your fees are paid

by the Student Loans Company and you will only need to
repay them if you earn enough once youve left university.
If youre saying but I dont want to be in debt, please read
Think of it more like an extra tax, not a loan! in section 4.

2 The nightmare scenario borrowing elsewhere to fund fees

Student loans are one of the cheapest and least risky forms of longterm borrowing possible (more on why later). Their massive advantage
over normal borrowing is you only repay if you earn enough and if you
lose your job repayments stop. To get a commercial debt to replace
a student loan is almost always a bad decision. Be very careful.

section 1 - the basic facts

3 You only repay if you are earning enough

Once you leave university, you will only repay

the loan if you are earning above a certain
threshold. For those starting in 2012 and after,
this amount is currently 21,000 a year. And
if you never earn enough (although we hope
you do) youll never have to repay a thing.

KEY FACT

Key Fact You will

repay 9% of everything
earned over 21,000
Once you leave university, you start repaying
the following April, provided you are earning
above a certain threshold in that year. If youre
starting university in 2013, this amount in your
first year will be 21,000 a year (the threshold
rises with average earnings from 2017, the year
2013 starters will be eligible to start repaying).

If you hear other people talk

about the funding system and
tell you their experiences,
do remember it completely
changed for new 2012 starters
in England anyone who
started university before then
was on a different system.

section 1 - the basic facts

4. Part-time fees are rising, but tuition fee loans are now available

Part-time students, often forgotten, make up about a third of all

undergraduates. Fees for part-timers have increased very substantially
from 2012, with all universities being able to charge up to 4,500
a year and some 6,750, provided they offer help to students
whose incomes are lower. However, that coincided with, for the
first time, tuition fee loans being available to part-timers on the
same basis as full-timers for most first time undergraduates.

This presents an opportunity

for some mature students
thinking of studying part-time
as now you do not have to
find the cash up front to
pay for your tuition fees. If
this is interesting for you
please take a look at our
Part-Time Students Guide.

section 1 - the basic facts

5 There may be no increased cost of a 9,000 course over 6,000

Monthly repayments are the same whether you take a 6,000 or

9,000 course as they depend solely on earnings. Also because the
debt will be wiped after 30 years, and many students wont repay in
full in that time at the 6,000 level, there may be no additional total
cost to 9,000 courses (this is explained in full in part 3). So dont
automatically plump for the cheaper course if its not the right one.

6 Paying the fees upfront may be throwing the money away

Even if you have the money saved, it may be a mistake to pay the tuition
fees up front. The obvious example is if you paid the maximum threeyear 27,000 fees, yet afterwards you never earn over the 21,000
threshold or you retired soon after completing your degree that means
you wouldve cleared fees that youd never have needed to repay.
A less extreme example is that you may need to repay some of
the fees but not all, in which case you still could be onto a loser. If
you are considering using your funds to pay the fees, more info on
how to decide can be found at: www.mse.me/payupfront. As a
mature student the decision can be easier as you may have a better
idea of your aspirations and earning potential after graduation.

section 2 - Loans, grants and bursaries

There is a range of financial support out there for those wanting
to go into higher education. This falls into two main categories
government support and direct money from universities
and colleges. The amounts available often depend
on household income which usually means your unearned income,
and the taxable income of any partner that lives with you.

i. Government funding Loans

and grants for tuition AND living
Government funding is assessed by Student Finance England, part of
the Student Loans Company (though it is up to the student to decide
whether they want to apply for all of it it isnt compulsory to take it all).

1 Tuition fee loan

For first time, full-time undergraduates this covers the entire tuition
fees charged by the university or college. The amount does not
depend on your household income and is paid direct by the Student
Loans Company to the university or college. It is available to anyone
of any age, whether 18 or 800 (yes Methuselah that includes you).
2 Maintenance loans for under 60s (Living cost loans)

The second type of loan also from the Student Loans Company is only
available to those who are aged under 60 when they start their course
and is to help cover day-to-day cost of living, such as food, rent and
travel. These loans are usually paid in three installments (one at the start
of each term) directly into your bank account. The amount you can apply
for depends on whether you study in London or elsewhere in the UK.

section 2 - Loans, grants and bursaries

In 2013/14 the maximum annual loan for
mature students is 5,500 (7,675 in
London or 6,535 if living overseas).

The amount is dictated

by two elements:
o The Guaranteed bit. Up to 65% of the maximum
living cost loan is available to all eligible students
in 2013 regardless of their household income.
o The Income Assessed bit. The remainder is means tested
depending on your and your partners residual income (i.e.
gross income minus disregards for pension contributions
and for children living with you). The rule of thumb is, the
higher the income the less youre entitled to, although

Students with
residual income of
42,611 or less get
maintenance grants
It may surprise you, but university
grants are still available! If you
are 60 or under and your residual
income is 42,611 a year or less,
then you will also be entitled to a
grant thats non-repayable (except
in some circumstances where
you leave your course early).
But bear in mind that if you
are entitled to a full grant, the
maximum maintenance loan
available will be reduced,
though by less than the
amount of the grant.
NB: Full-time students with a
household income of 25,000 or
less will qualify for the maximum
grant of 3,354 for living costs.

section 2 - Loans, grants and bursaries

Example
A student with a 25,000
household income or less living in
their own home (outside London)
would get a grant of 3,354 and a
maximum loan of 3,823 (not the
full 5,500). If their household
income is between 25,000 and
42,611 they get a smaller grant
though the maximum loan amount
increases to make up for it.
See the table on the opposite
page for more information.

10

Household Income Package of support for students

Non-repayable
Maintenance
maintenance grants loans

Total

25,000
or less
30,000

3,354

3,823

7,177

2,461

4,292

6,708

35,000

1,478

4,761

6,239

40,000

540

5,230

5,770

45,000

5,288

5,288

50,000

4,788

4,788

55,000

4,288

4,288

60,000

3,788

3,788

over 62,125

3,575 (+)

3,575

section 2 - Loans, grants and bursaries

how is household
income calculated?
Income used for student finance calculations
is called residual income. For mature
students this is based on your income (and/
or your partners income, if youve had
one for the last complete tax year).
The good news is that if you decide to take
a part-time job while you study, this wont
count towards your residual income, though
your partners earnings and any unearned
income, such as interest on your savings, will.
Any money paid into a pension is not counted
either and a further 1,130 will also be
disregarded for each dependant child you have.
See www.studentfinanceengland.co.uk
for more information.

You may be entitled to other grants if

youve got children or adult dependants.
Other support may be available if youve got kids or youre
responsible for looking after an adult, such as an elderly
relative. These are often means tested and include:
Parents Learning Allowance. If youre a full-time
student with at least one child then you
may be eligible for up to 1,508.
Childcare Grant. You may eligible for a grant covering 85%
of the cost of childcare, up to a total of 255 a week.
Your university MAY be able to pay for the remaining 15%
that the Childcare Grant doesnt cover youll need to contact
the universitys money advisor for more information.
Remember, if you do decide to claim the child
grant then you wont be able to claim any childcare
costs from the Working Tax Credit.
Adult Dependants Grant. If you have a partner or other adult
member of your household with an income of 3,796 or less,
you may qualify for an additional grant of up to 2,642.
If you think any of these may apply, then its worth spending
five minutes on http://www.studentparents.org
to check it out.

11

section 2 - Loans, grants and bursaries

How do you apply for a loan?

Application forms can be filled in online at
www.studentfinanceengland.co.uk
But you dont need to wait until youve been formally
offered a place you can apply once youve sent your
UCAS application off. The funding application period
usually starts in the January before your course begins.

Budgeting while at uni

A working person shouldnt spend more than they
OK thats easy the answer is EARN. Now answer this:
What shouldnt a student spend more than?
Its this piece of the budgeting jigsaw many people miss, but
its crucial without knowing your income you cant budget.
So heres an easy rule of thumb you shouldnt spend
more than the total amount of your student living
loan, any grants and any income from working.
Its worth noting that this means were in the rare
financial situation that a loan is counted as income
but thats because its a special type of loan.

12

section 2 - Loans, grants and bursaries

ii. Money from universities Fee waivers and bursaries

As part of the conditions for being allowed to
charge fees above 6,000, many institutions
have to put money aside for students from homes
with lower incomes and those who would be
considered less likely to attend university.
If your household income is low or you would be
considered unlikely to attend university, you may be
offered further incentives to go. Part of the help that
institutions offer comes from the National Scholarship
Programme (NSP) for those from households
with incomes of 25k or less. But amounts and
eligibility vary from institution to institution, so its
worth checking wherever you intend to study.
Generally, the money is likely to be given
in one of three ways and could be worth up
to 3,000 for some full-time students.

fee waiver or bursary?

go for the bursary!
If given a choice, and some universities will,
and with everything else being equal, it is
usually far better for a prospective student
to pick a bursary over a fee waiver.
The reason for this is quite simple, as will be explained
in the next section. Many graduates will never repay
in full even at the 6,000 level so in real terms,
unless theyre a higher earner, the fee waiver is unlikely
to significantly reduce the amount repaid, if at all.
So while it may feel like the fee and debt is lower (and
does therefore have some psychological advantages)
a fee waiver has no material impact on a graduates
pocket. Contrast this to a bursary that provides
definitive cash now, which is a boon and could
reduce the need for any commercial borrowing.

Fee Waiver A reduction of your first years tuition

fees meaning the loan needed is reduced.
Bursary This is some form of cash, or gift
in kind. It could range from 1,000 in cash
or help with living costs depending on your
situation. Only available to full-time students
Scholarship Similar to a bursary, it is usually
a form of cash or gift in kind. But getting it
depends on your academic ability (usually A-level
grades, or equivalent) rather than income.
13

section 3 - how the repayments work

Student loans must be repaid when you have left the course and
started work, and are earning over 21,000 whereas grants
and bursaries do not need to be repaid (unless you leave your
course early in some circumstances). Students starting at English
universities in 2013 could graduate with loans of anything up to
50,000 if they take both tuition fee loans and maintenance loans.

Graduates repay 9% of their pretax annual earnings above 21,000.

This means, no matter how much you take out in
loans youll pay the same back each month.

Example If you earn 22,000 a-year, youll

repay 90 a year or 7.50 a month (9% of
the 1,000 earned above 21,000). If you earn
31,000, youll pay 900 a year (75 a month).
Earn under 21,000 and you never repay.
The 21,000 threshold is designed to rise in line with average earnings
(from April 2017), so youll repay 9% of everything above that threshold.
But if you never get a job earning over this threshold, then youll
never repay. And if you lose your job or take a pay cut when you
have already started repaying the loan, repayments simply stop or
drop accordingly, until your income exceeds the threshold again.
Repayments are always calculated using your personal income, not
your partners the loan agreement is between you and the Student
Loans Company, so they cant ask your partner to contribute.
14

section 3 - how the repayments work

After 30 years any remaining

debt is wiped out
You stop owing when youve cleared the debt or 30
years pass (from the April after graduating or leaving
university), whichever comes first. If you never get a
job earning over the threshold, youll never repay.
In the horrid circumstances that you were to
die or become permanently incapacitated (in
receipt of disability benefits and unable to
take on any work) the debt is also wiped out,
so it doesnt pass on your dependants

No debt collectors!
Most student loans are repaid through the
payroll the money is taken off just like
tax, so never gets into your hands.
Thus unlike with commercial loans, no debt
collectors will ever be involved with student loans
and if you ever earn under the threshold amount,
or lose your job or take a career break, your
payments will simply stop no questions asked.

A boon for older students

If youre nearer white hair than nappies, the
structure of repayments may be a real boon for
you. Those who have less than thirty years until
retirement should factor this into the equation. As
unless youve a seriously big pension pot, you are
unlikely to be earning over the 21,000 threshold at
that point therefore your repayments will stop.
Take the example of someone retraining aged 55,
on a three-year course by the time it finishes
there is less than a decades worth of repayments
to make, which could make it very cheap indeed.
15

section 3 - how the repayments work

Above-inflation interest will be charged

One other major change to the student finance system is that a higher
interest rate is now charged. For the first time, students wont just pay for
the cost of their education sadly theyll pay for financing it too.
However, it is important to understand that this interest is just added to the amount
owed. It doesnt change repayments. Therefore, if a student will never repay in
full in the 30 years before their debt is wiped, the added interest is irrelevant.
But if they are a higher earner it will mean they are repaying for longer and
repaying more. See www.studentfinancecalc.com for more information.

While studying:
Students will accrue RPI inflation plus 3% on
the outstanding balance. This starts as soon as
you get the loan and continues until the 1st April
after your studies end when it changes to
After studying and earning under 21,000:
Accrue RPI inflation.
After studying and earning 21,000 - 41,000:
The interest rate will gradually rise from RPI to
RPI plus 3% the more that is earned (the interest
rises 0.00015% for every extra pound you earn

16

or, put another way, if you earn 1,000 more, you

accrue 0.15% extra interest). These thresholds are
likely to rise with average earnings from 2017.
After studying and earning over 41,000:
Accrue RPI inflation plus 3%.
This, coupled with the fact the new system requires
you to pay less at any given income when compared
to the old arrangements, stretches even further
the time it will take you to repay. But as those on
lower incomes are unlikely to ever repay the loan,
for them at least, this wont have an impact.

section 3 - how the repayments work

An easy way to explain inflation

Inflation is a measure of the rate at which prices
change over time. Usually, though not always, they
are increasing. So if inflation is 4%, then a basket
of shopping costing 100 this year will cost 104
next year. Therefore, if the interest on a loan is set
at the rate of inflation its like saying you were lent
a basket of shopping worth a certain amount this
year, but when it comes to repaying youd only have
to give the cash thatd buy that same basket back.
This means your actual spending power
hasnt been diminished by taking out the
borrowing so it hasnt cost you anything.

KEY FACT - Monthly repayments

are the same on 6,000
and 9,000 courses
Whether choosing a course that costs 6,000
or 9,000, you will repay the same amount
each month, as that purely depends on what you
earn (9% above 21,000). Of course, the more
you borrow, the longer you could be repaying.

With the new student loans, when interest is

above inflation, its the above inflation bit that
is the real cost. Do remember though that this
only affects you if you will repay in full in the 30
years before the debt is wiped, otherwise its
just adding to the nominal amount you owe
rather than impacting what you actually repay.

17

SECTION 4 - HOW MUCH WILL IT ACTUALLY COST?

This is the crucial question and one of the many
fears that are putting people off going to university
the how will I afford to live with this debt?
question. The answer is different for everyone, but
the following three points should help clear it up.

1. You will repay 470 a year LESS

than current graduates
You may ask How can I survive with such debts? To
help its worth contrasting with current graduates.
Those under the new-system will actually have
more money in their pockets than current graduates
so in cash flow terms at the very least thats an
improvement. At the moment, graduates repay 9%
of everything above 15,795, yet for 2013 starters
that threshold has increased to 21,000.

Calculate how much youll pay

You can use this tool to find out a rough estimate
of how much you will repay based on your tuition
fee loans, living loans and estimated starting
salary. Look at whether the amount changes
as you move the sliders depending on what
tuition fee loan and what maintenance loan you
take out www.studentfinancecalc.com

18

SECTION 4 - HOW MUCH WILL IT ACTUALLY COST?

ose
This means th
the
e
ov
earning ab
d will
ol
sh
re
21,000 th
their
in
e
or
have 470 m
year than
pockets every
t helps
ar
ch
now. This
this:
te
ra
demonst

EARNINGS

old SYSTEM
Annual
repayment

Monthly pay
packet reduction
is equivalent to

NEW 2012 SYSTEM

Annual
repayment

Monthly pay
packet reduction
is equivalent to

15,795

Nothing

Nothing

Nothing

Nothing

17,000

108.50

Nothing

Nothing

21,000

468.50

39

Nothing

Nothing

22,000

558.50

46.50

90

7.50

30,000

1,278.50 106.50

810

67.50

40,000

2,178.50 181.50

1,710

142.50

50,000

3,078.50 256.50

2,610

217.50

NB: While its likely those repaying under the new system
will have more disposable income in the years after
graduating or leaving university than current graduates,
that gap is likely to narrow as the old repayment
threshold started to rise with inflation in 2012.

19

section 4 - how much will it actually cost?

2. You WILL owe money for

longer and MAY pay a LOT more
The obvious flip-side of repaying less every
month due to the 21,000 threshold (increased
from 15,795 for pre-2012 university entrants) is
that it will take much longer for you to pay off the
loan than current graduates. This is compounded
by the fact that the original debt is bigger and
the interest rate higher. The cost is effectively
being spread over a much longer period and
most will pay more, though those who gain least
financially from their education may find their total
repayments are less due to the higher threshold.

20

For many theres no additional

cost of doing a 9,000 course
Even if you START work on a salary of 30,000,
which is well above average, and with good salary
progression after that, you would not repay in
full at 6,000 course fees and the maximum
living away from home maintenance loan.
That means there is no additional cost in opting
for a 9,000 course. The calculator
(www.studentfinancecalc.com) and table
opposite can show this in more detail. Overall it
means no one should be scared of opting for a
higher fee course, if its the right one for them.

section 4 - how much will it actually cost?

3. Many people will NEVER repay in full

However, it is important to remember a student
loan is not like a conventional debt you should
really concentrate on how much you are required
to pay on a monthly basis (and on the fact that this
amount is flexible according to your circumstances),
rather than worrying about what you owe in total.
Calculations show the lower repayments and higher
borrowing means all but high earners will be making
repayments for the entire thirty years before the
debt is wiped out, and wont come close to repaying
in full what they borrowed plus the interest.
Take a look at the examples opposite of what
a graduate on a 9,000-a-year course would
expect to repay, depending on salary:

Estimate of total repayments in todays money.

Based on 9,000 annual fees and 5,500 maintenance loan
Starting salary
(Sep 2016)

Total amount repaid Will I fully repay it?

(in todays prices)

10,000

Nothing

No

20,000

7,000

No

30,000

43,000

No

40,000

77,000

No

50,000

68,000

Yes - 21 years

ASSUMPTIONS:
RPI 3%, graduate salary increases by RPI + 2%,
tuition loan and maintenance loan are 9,000 and
5,500. Average earnings assumed to grow by RPI +
2% (based on ONS figures 20002010). Source:
www.studentfinancecalc.com

21

section 4 - how much will it actually cost?

Think of it more like an extra tax not a loan!

The maximum possible loan, combining tuition fees
and maintenance, is 16,675 a year, or 50,000 over
a three-year course. This is a frightening amount,
and indeed many are frightened of it. But it may
help to think of it as being like facing an additional
tax, rather than a loan, for the following reasons:
- Its repaid through the income tax system.
- You only repay it if you earn
over a certain amount.
- The amount repaid increases with earnings.
- It does not go on credit files.
- Debt collectors will not chase you for it.
- Bigger borrowing doesnt increase repayments.
- Many people will continue to repay for
the majority of their working life.
In summary, you can basically view repayments
as a form of tax but one that either ends after
30 years, or once youve repaid what you
borrowed plus interest whichever comes first.

22

The reason for stressing the tax concept is

because you may wrestle with how will I pay
to go to university? and then risk your own
financial solvency and security to do so.
The system is set up so that the cost is met by the
beneficiary of the education you may politically
think the state should pay but that isnt how it
works. You are responsible. When this is referred to
as a loan you may wish to avoid getting into debt,
even though you may not need to repay all of it.
Yet if wed called this system a form of tax,
would you still feel compelled to avoid
paying a higher tax rate? Of course there is
a balance to be struck, but its worth thinking
this through to judge your own reaction.

section 4 - how much will it actually cost?

Student loans do not go on credit files

When people borrow from a bank for a credit

card, loan or mortgage, to evaluate whether theyll
make money from them, lenders look at three
pieces of information: their application form, any
previous dealings theyve had with them, and
crucially the information on their credit reference
files. Most normal financial transactions and
credit relationships are listed on these files yet
student loans are not included (with the exception
of students who started university before 1998
under the old loans system and have defaulted).

The new system is unlikely to affect you getting a mortgage

The ability to get a mortgage is one of the big fears many prospective
students have about the change to the system. Actually the impact
is likely to be negligible, or even marginally more positive for
some compared to current graduates. The key is the fact youll
have more disposable income because you only need to repay
based on earnings above 21,000, not the current 15,975.
This means in the early years it makes saving for a deposit
and repaying a mortgage in the years after graduation slightly
easier as you will have more disposable income.
Though this is balanced by the fact that there comes a point
where those under the old system will have repaid their loans
but new-system graduates will still be paying once that
happens you will effectively have less disposable income.
23

Q&A
Why has the system changed?
The funding that used to be provided to universities
has been radically cut by the government (sometimes
by more than the extra fees received will make up
for). Education has to be paid for by somebody and
universities have buildings to maintain, staff to pay
and administration costs to think about too. In the
past the bulk of the cost was met by the taxpayer,
so everybody who worked and paid tax helped fund
the cost for those who went. The new government
policy has decided to shift this cost onto the
individual students who benefit from the education.
There are different views on whether this is a good
idea or not, but it is important to understand how
the changes affect anyone considering university.

Is university worth the cost?

Going to university is an individual choice. While on
average graduates are higher earners than those who
dont go to university, there are no guarantees. Yet
higher education is about more than just financial gain
it can be an incredible and enjoyable experience
both socially and culturally. After the heated political
debate about tuition fees, it is vital that potential
students can make informed choices about going to
university based on the facts about the new system.

24

No one can decide for you if its right for

you or not by explaining the likely cost,
we can help you work out the value.

Will it be possible for graduates to

repay student loans early?
No charges or so-called early redemption penalties
will be imposed on graduates who decide to pay
off their student loan early. This means if you do
run into cash after university and want to clear your
debt earlier to avoid further interest costs, you
can. However, just because you can repay without
penalties, that doesnt mean you should. For some
who wont pay off their loan in its entirety, making
extra payments could simply be throwing money
down the drain as it wont make any difference.
For more information on how this works visit
http://www.moneysavingexpert.com/
students/student-loans-repay

What happens to repayments if you

have other forms of income?
If you have additional income of 2,000 or more from
savings interest, say, or shares and dividends, then
this will also be treated as part of your income for
repayment purposes and youll need to repay 9% of
that too through the self-assessment tax system.

Q&A
What about Scottish, Welsh and Northern Irish students?
Scottish, Welsh and Northern Irish students,
including those who decide to study in
England, receive their financial support from
their home devolved administration.
Its a matter for the devolved administrations to
decide how they wish to support their students.
Scotland:
Scottish students studying full-time in Scotland
do not pay any tuition fees, and could be
eligible for a living cost loan and bursary.
Fees for English, Welsh and Northern Irish full-time
students studying in Scotland will be set by each higher
education institution. English, Welsh and Northern Irish
students will receive the same level of means-tested
grants as if they were studying in their home countries.
Further information can be found on www.saas.gov.uk
Wales: Tuition fees at Welsh universities followed
the English pattern and have been increased to
up to 9,000. However, the Welsh Assembly will
cover the increase for Welsh resident students
i.e. they wont have to pay any more than the
current cost plus inflation, likely to be 3,465.
Further information can be found at
www.studentfinancewales.co.uk

Northern Ireland:
Fees for Northern Irish full-time students studying
in Northern Ireland will be set by each higher
education institution, up to 3,575. Students will
be able to access a loan to cover living costs
and may be eligible for a grant and bursary.
Fees for English, Welsh and Scottish full-time
students studying in Northern Ireland will be
set by each higher education institution up to
9,000. English, Welsh and Scottish students will
receive the same level of means-tested grants as
if they were studying in their home countries.
For further information can be found
on www.delni.gov.uk

What other forms of funding are there?

In addition to official financial support, other funding
sources are also available from scholarship sites such as
www.scholarship-search.org.uk
www.family-action.org.uk
www.turn2us.org.uk
www.studentcashpoint.co.uk
www.unigrants.co.uk
You should always ask your university or college
what additional funding they provide.
If I have a disability, can I get any extra financial support?
If you have a disability or specific learning difficulty
which could mean anything from a mental health
25

Q&A
condition to dyslexia you can get extra financial help.
The Disabled Students Allowances (DSAs) are for
those who face added costs because of a disability or
other condition. DSAs are paid on top of the standard
student finance package and even better, they are not
dependent on income and do not have to be repaid.

If I want to do a distance learning course

can I get a living cost loan?
In this case you cant. From September 2012, if
you begin a full-time distance learning course
you can get a loan to cover the full amount of
the tuition costs, but cannot apply for living cost loans.

What happens if I ditch my course?

If you leave your course early for whatever reason, any
loans you have had up to the point of leaving for either
tuition fees or maintenance costs will still need repaying.
The repayments and interest work in the same way
as if you completed the course in other words you
repay 9% of everything earned above 21,000 starting
in the April following the three years after you started.
Any payment of grant which relates to a period you
werent attending will need to be repaid immediately.

Can I apply for funding every year while studying?

Yes, you can normally apply for a loan for tuition
for every year of your course. There are some
exceptions, for example for longer courses such
26

as medical degrees where different packages of

support are available in later years. You should
check with your university or college if you are
unsure what support is available to you.

What happens if I lose my job or take a career break?

If after university you are working and your salary
falls below 21,000 a year then repayments
stop. So if you take a career break or are
unemployed then repayments will be suspended
until you are earning over 21,000 again.

How do those who are self-employed repay the debt?

If you set up your own business or work for yourself,
your repayments will be collected via HMRCs Self
Assessment scheme. This means you will need
to make payments by the appropriate deadline
to fulfil your legal obligations. If you do not pay,
HMRC will pursue you for any amounts overdue.

Do you still have to repay if you move abroad?

Yes is the simple answer. Youre still obliged to repay
the student loan based on 9% of all earnings above the
equivalent of 21,000 in the country you are in and can
face a fine if you dont. By taking out the loan you have a
contractual relationship to repay it. You may have heard
that some people dont repay loans when they move
abroad. If that happens its because there are practical
difficulties in the government pursuing their repayments
but that doesnt stop them owing the cash.

further reading
Bright Knowledge

NUS

www.brightknowledge.org
- the essential guide to careers,
education and student life

www.nus.org.uk
- National Union of Students, a voluntary
membership organisation which
represents the interests of students

MoneySavingExpert
www.moneysavingexpert.com/students2013
- key facts and figures about student
finance and tuition fees

Student Finance England

www.studentfinanceengland.co.uk
- information about applying to
university in 2012/2013

NASMA

UCAS
www.ucas.com
- the organisation responsible for managing
applications to higher education courses in the UK

Universities UK
http://www.universitiesuk.ac.uk/
StudentFinanceCrossBorders
- For information on student finance
across all parts of the UK

www.NASMA.org.uk
- the National Association of Student Money
Advisers who work in universities, students
unions and further education colleges

guides
See our other a ils
et
for specific d
udents guide
- Part-time st guide
- Teachers
ents guide
- Full-time stud

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