Student Finance 101

Going to university is an exciting time. There are the open days, choosing your course, selecting your university, leaving parents for the first time, and of course, all the friends that are to be made. However, a quality university degree from a UK establishment does not come cheap. British courses are recognised the world over, and wherever you end up you can be sure you’re getting a first-class education that will set you up for life in your chosen career path, but it does come at a cost.

NUS figures show that the total cost of attending university – when accommodation and living fees are considered, on top of the course fees – is in the region of £20,000 a year. It is a mind-blowing sum when it is multiplied by a 3, 4 or even 5-year course. It’s even more if you plan to study abroad for part of it.

So where does all this money come from to pay for it? Let’s take a quick look at the finances you will need and how to secure the funding.

Tuition Fees

The cost of a standard university degree for a UK student studying full-time is capped at £9,250 per year. Unless you have parents who can pay that or a nice trust fund, you will need to apply for a student loan from the government.

You will need to fill in an application form that takes into account your parent’s earnings and the level of funding is determined in part from those figures. The good news is that you don’t have to start paying that back until you begin earning over £27,295 per year. The tuition fee payment is sent straight to your university and you do not receive it into your bank account.

Maintenance Loans

In addition to studying, it’s not likely that you will be able to hold down a full-time job and earn enough to pay for things such as rent, utility bills or shopping. For this reason, the government can also provide you with a loan each year depending on whether you live at home (up to £8,610) or not (up to £10,227) – these figures rise slightly if you are in the London area.

Again, this is ‘means-tested’ against your parents’ income. You do have to pay this loan back once you finish university, but unlike a tuition fee loan, it is paid directly into your bank account so you can pay for everything you need to keep you on the course successfully.

To see how much you may be entitled to, use finance calculator on the government website.

Additional Finances

The above two loans are not all you are entitled to being a full-time UK student. If you have children or have exceptional circumstances with a disability, you can apply for a hardship fund, and you may even be able to claim income support if you have a family of your own.There are a wealth of other funds to support you too, such as childcare grants, child tax credits, working tax credits, parents’ learning allowance and there’s even an adult dependants’ grant you can claim for. These will now all come under the heading of Universal Credit. 

Depending on the course you choose, you may also be entitled to special course-specific university bursaries and grants.

Check out our article Your Guide to Free Money for more information on these.

The costs involved with studying in further education can be massive, but the potential to secure a great job after it is also increased greatly. The UK government makes it quite easy for you to attend university or college regardless of your background or financial situation, so you can confidently choose the course most suited to you without the worry or fear of being able to sustain it to completion. Why not use the government calculator to find out what you could be entitled to?

So what are you waiting for? Get those Open Days booked in and begin your new life in further education. You can follow us on Twitter, Instagram and Facebook for more money-saving advice and helpful tips for students such as How To Choose Your Flatmates.

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